• Home
  • Privacy Policy
  • Write For Us
IDEGRAAF
  • Home
  • Schools
  • Institutes
  • Scholarship
  • Distance Learning
  • Online Classes
  • Education Loans
  • Recruitment
  • Career
No Result
View All Result
  • Home
  • Schools
  • Institutes
  • Scholarship
  • Distance Learning
  • Online Classes
  • Education Loans
  • Recruitment
  • Career
No Result
View All Result
IDEGRAAF
No Result
View All Result
Home Education Loans

U.S. Department of Education Announces Requirements for New Federal Loan Servicing System

saheli by saheli
October 27, 2016
in Education Loans

The U.S. Department of Education today announced an important step forward in the Obama Administration’s efforts to strengthen the student loan servicing experience for borrowers. Federal Student Aid issued the next phase of its procurement to acquire a single servicing platform to support the management of loan repayment for the more than 30 million Americans with student loan debt serviced by the Department of Education. The solicitation details the specific requirements the selected contractor must fulfill when developing the servicing platform.

“Borrowers deserve access to the right information from their servicers as they make important decisions about managing loan repayment, ultimately paying off their debt and climbing the economic ladder,” said U.S. Secretary of Education John B. King Jr.“Today’s announcement builds on our ongoing effort to simplify and improve the borrower experience.”

In April, the Department outlined a new vision for federal loan servicing. That vision included the President’s call for a system that allows borrowers to navigate loan repayment with ease by logging into a single web portal to access information, make payments, apply for benefits, and manage their account. Under the procurement, one entity will be selected to provide this single servicing platform, which will perform these core functions and work with select partners to service loans. The new system will also more accurately measure and disclose how the system is performing. In July, the Department, working closely with the U.S. Treasury Department and the Consumer Financial Protection Bureau, wrote a memo to Federal Student Aid that detailed a series of enhanced protections and customer service standards to strengthen student loan servicing and inform the ongoing procurement process.

The procurement requirements outlined in the solicitation reflect the Department’s plan to implement those enhanced protections and standards, and will provide for:

  • Improved oversight of vendors;
  • Increased cost efficiencies and loan allocation metrics that reward customer service partners for good outcomes for borrowers – managing repayment and avoiding default;
  • Improved communications to borrowers, both spoken and in writing, about their loans, account features, and the options available to them;
  • Uniform, Department of Education branding and a common borrower experience to avoid borrower confusion;
  • An integrated complaints process linked to the Federal Student Aid Feedback System to ensure vendor accountability;
  • The collection and release of data to the public to increase transparency of vendor performance.

Last March, as part of the Student Aid Bill of Rights, President Obama directed several federal agencies to improve student loan servicing and help make paying for higher education an easier and fairer experience for millions of Americans. Last fall, the Departments of Education and the Treasury, and the Consumer Financial Protection Bureau issued a Joint Statement of Principleson student loan servicing calling for enhanced protections and improved customer service standards.

The new loan serving system will lay the foundation for upcoming contract actions. The July servicing memo has been updated to further clarify that customer service providers should be allocated borrower accounts that reside on the single platform based on performance as measured against specified outcome measures. Upon full implementation of our vision, no single vendor will be responsible for performing every aspect of student loan servicing for all loans.

In response to the Phase I solicitation, Federal Student Aid received five proposals. Three firms were selected to participate in Phase II of the procurement. The Department anticipates the servicing system contract will be awarded by February 2017.

When available, a public version of the detailed procurement requirements will be posted here.

[Source:-US department Of education]

Tags: announcesDepartmenteducationFederalforloan?newofrequirementsServicingsystemU.S.
Previous Post

Sector leaders back income-contingent loans for South Africa

Next Post

Penn State students discuss how each presidential candidate could affect education

Next Post
Penn State students discuss how each presidential candidate could affect education

Penn State students discuss how each presidential candidate could affect education

Recent Post

  • What is Web3 and How Could it Disrupt Education?
  • HPTET 2021 result declared: How to check scorecard and what’s next
  • USF team receives grant to help caregivers support preschoolers’ mental health
  • Why Repaying Your Education Loan is Important
  • Education Ministry Launches Online Module To Track, Re-Enrol Out-Of-School Children
  • MP govt and private schools come to a face-off over school fees issue
  • NBSE Result 2022: Nagaland Board HSLC, HSSLC Results Not Today; Details Here
  • Tata Sky Binge+, HD Set-Top Boxes Price Discounted Up to Rs. 400 Online
  • Digital University Kerala Partners With United Nations, World Health Organization On Disaster Preparedness
  • Unlimited opportunities, huge investments: India bets big as Expo 2020 Dubai kicks off

Calendar

September 2023
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  
« Jul    
idegraaf

Navigate Site

  • Home
  • Privacy Policy
  • Write For Us

Follow Us

No Result
View All Result
  • Home
  • Schools
  • Institutes
  • Scholarship
  • Distance Learning
  • Online Classes
  • Education Loans
  • Recruitment
  • Career