Student Loans

Less than five months after it announced it was exiting the student loan servicing business, the Pennsylvania Higher Education Assistance Agency — more commonly known as PHEAA — disclosed on Thursday that it had reached an agreement with the Education Department to extend its contract for one year to allow …

The Department of Education last week notified the private collection agencies it had been using to help recover payments on defaulted student loan debts that it would no longer be placing accounts with them. Instead, the accounts will be placed with five private contractors hired by the department last year …

The Department of Education has approved a request from Navient to transfer its portfolio of 5.6 million of student loans to Maximus, which will take over Navient’s contract with the Department going forward. Navient announced its decision to stop servicing loans under the Next Generation Financial Services Environment program, or …

The Department of Education is considering proposals that would give borrowers “new flexibility” like initial grace periods when its moratorium on student loan payments ends on January 31, according to a published report. Individuals with federal student loans have not had to make payments since the COVID-19 pandemic hit the …

The Department of Education on Friday announced that it has awarded contracts to six different companies that will be responsible for servicing and collecting federal student loans, while also announcing that it has amended the contract terms for those providers to strengthen “standards for performance, transparency, and accountability” that are …

Now that he has been confirmed by the Senate to be the next Director of the Consumer Financial Protection Bureau, the wait has been on to see when Rohit Chopra would actually start working there. Richard Cordray, himself a former Director of the CFPB who is now the Chief Operating …

The Department of Education on Friday announced the creation of a new enforcement office that will watch over postsecondary institutions to “vigorously” ensure that rules are being followed and named an individual that should be familiar to many in the accounts receivable management industry to run the office. The Office …

The Department of Education yesterday announced major changes to the Public Service Loan Forgiveness Program that will see 22,000 individuals become immediately eligible for the program and an estimated 550,000 individuals move a lot closer to having their student loans wiped away. Under the PSLF, individuals who spend 10 years …

Navient yesterday announced it was transferring 5.6 million student loan accounts that it was servicing on behalf of the Department of Education to Maximus, another loan servicing company. Navient, which had decided already that it no longer wanted to continue servicing loans under the Next Generation Financial Services Environment program, …

If anything, Richard Cordray understands that restarting a behemoth like federal student loan payments is not as simple as flipping a switch and the gravity of the importance in making sure that the restart is done properly is not lost on him, based on a speech that he gave last …