The Education Department’s Office of Federal Student Aid introduced a brand new plan Thursday to reform the scholar mortgage servicing system that oversees the 35 million debtors with federal scholar loans. The plan, known as the Unified Servicing and Data Solution (USDS), goals to simplify entry to scholar mortgage servicers and enhance transparency between FSA, debtors and mortgage servicers, which have lengthy been points that complicate the scholar mortgage servicing course of.
Since 2016, FSA has tried to restructure the scholar mortgage servicing expertise. Servicers are the primary supply that gives info to debtors on how to apply for support, enroll in reimbursement plans and discover info on mortgage standing. The six mortgage servicers that contract with the federal authorities every function their very own web sites, making entry to this info sophisticated.
USDS goals to simplify this course of by streamlining entry to all scholar mortgage servicers with federal contracts by way of the FSA-managed StudentAid.gov. Additionally, FSA will enhance accountability measures to guarantee scholar mortgage servicers are offering ample customer support to debtors by implementing new reporting metrics.
FSA is at the moment evaluating proposals with mortgage servicers to implement the objectives specified by USDS. These proposals will probably be applied within the new servicing contracts between FSA and mortgage servicers, that are set to expire in December 2023.