“U.S. Secretary of Education Betsy DeVos said the current system of a multitude of companies collecting the some $1.2 trillion in outstanding debt created a chaotic system.
“The federal student loan servicing solicitation we inherited was cumbersome and confusing—with shifting deadlines, changing requirements and de-facto regulations that at times contradicted themselves. Internal and external stakeholders both agreed it was destined for a massive and unsustainable budget overrun,” she said.
Devos said the move simplifies the loan collections process and will save taxpayers some $130 million in the next five years.”