This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed her intention to transform how the Federal Student Aid Fund (FSA) provides customer service to more than 42 million student loan borrowers, calling it “Next Generation Processing and Servicing.” As part of ED’s August announcement, Dr. A. Wayne Johnson, brand new Head Working Manager regarding FSA commented:
“The latest FSA Student loan System represents roughly the same as as being the largest special-purpose consumer lender around the globe. Adjust customer care, we will do the finest facts and capabilities available and place them to benefit Us citizens with college loans. When FSA users transition on the the handling and you will repair environment within the 2019, they will see a customer service program which is as installment loans New Hampshire the in a position to while the one about private field. The end result might possibly be an improved sense for college students – the users – and you will significant masters to the American taxpayer.”
A single-platform for servicing ED’s portfolio, estimated $1.4 trillion, certainly makes sense for borrowers with multiple loans, who may currently deal with multiple servicers on different databases.