Department of Education raises standards for student loan managers
On October 15, the Ministry of Education announcement revised standards for its student loan officers effective early next year. The six identified student loan service companies have signed contract extensions agreeing to comply with federal, state and local laws governing the service and collection of student loans and will respond to complaints filed with these authorities in a timely manner. According to Richard Cordray, responsible for the operation of Federal Student Aid (FSA), the new standards “rais[e] the bar for the level of service that student loan borrowers will receive. . .[and] come at a critical juncture as we help borrowers prepare for the resumption of loan repayments early next year. The FSA says that services that do not meet certain performance standards may see a decrease in the number of accounts placed with them, and services that help borrowers avoid falling behind on payments, especially creditors. risky borrowers, will be rewarded.
The standards will measure several performance metrics, including: (i) the percentage of borrowers who end a phone call before reaching a customer service representative; (ii) the extent to which customer service representatives respond to borrower questions and help navigate repayment options; (iii) “[w]other providers process borrower requests accurately the first time ”; and (iv) the overall level of customer service that borrowers receive. In addition, all six agents will be required to submit “new comprehensive reports”, which will provide the FSA with better insight into borrowers’ experiences with loan officers and allow the FSA to know why borrowers contact their loan officers, the type of borrower requests that are denied. , and complaints that borrowers send directly to loan officers. The FSA said it intended to release the performance data.