Education Department ditches plan to use single student loan servicer
The Trump administration in May said it planned to walk back an Obama-era change that sought to offer greater consumer protections to student loan borrowers.
At the time, Education Secretary Betsy DeVos said the system of using multiple companies collecting some $1.2 trillion in outstanding debt created a chaotic system.
But the plan to use one servicer is over as the department seeks to establish a single data processing platform to house all loan information while allowing customer account servicing to be handled by one or multiple contract services.
DeVos said she hired A. Wayne Johnson as chief operating officer to modernize the process. ■