Despite meaningful progress over the past 60 years, we havent bridged the gap developed from centuries of marginalization and the Supreme Courts ruling is a setback. The new contracts are part of a broader initiative to improve the delivery of federal financial aid programs through the Next Generation Financial Services Environment, commonly known as Next Gen. Next Gen, which was announced by FSA in 2017, will modernize the infrastructure that delivers federal student loans and other financial aid programs. Those five companies are Maximus, EdFinancial, F.H. Student loan servicers handle billing and other services on behalf of the U.S. Department of Education, and they work directly with borrowers to assist them in repaying their student loans. Tags: student loans, student debt, debt, education, paying for college. A rotation can be an eye-opening experience for aspiring doctors considering this path. Know How to Talk to Your Student Loan Servicer. For all transferred loans, borrowers will be notified when the transfer is complete. Keep in touch with your loan servicer, especially if you have had to change your address. You can find general information about how student loan transfers work at this FSA webpage. The blog is currently authored by Education Finance Council, a national trade association representing nonprofit and state-based higher education finance organizations; GreenPath Financial Wellness, a national nonprofit organization that provides financial counseling and education to empower people to lead financially healthy lives; and The Institute for College Access & Success, an independent nonprofit organization that conducts research, analysis and advocacy on making higher education more available, affordable and equitable. Importantly, understand that if your servicer changes, there will be no impact on the existing terms and conditions of your loan or the loan forgiveness programs or repayment plans available to you. By clicking submit, you are agreeing to our Terms and Conditions & Privacy Policy. If you are a borrower with loans serviced by one of the three servicers exiting federal student loan servicing, look out for notices from the servicer and FSA with information about the transfer. Student Loan Ranger helps prospective and current students and recent graduates make sense of borrowing options, student debt and loan repayment. When you receive information from your new servicer that explains how to establish your online account access and sign up for services like auto-debit, be sure to follow the instructions in a timely manner. Misinformation about student loans can lead to costly mistakes during the repayment process. Here are some things you should know. That forbearance period is scheduled to expire at the end of January 2022. Borrowers whose loans were assigned to one of these servicers about 16 million people will be transferred to another servicer designated by Federal Student Aid, the agency that administers federal student financial aid programs. Under Next Gen, all borrowers will transition to a new servicing platform and will have a new contact for questions and support. (Getty Images). The numbers support either side. FSA has begun implementing some changes, such as a new StudentAid.gov website, a virtual assistant named Aidan, and the Student Loan Simulator tool. Three of the eight servicers recently announced that they will soon stop servicing federal direct loans. What to Know About Student Loan Servicing Changes - U.S. News & World If you have federal student loans, you might have heard about some changes coming to federal student loan servicing and want to know whether any of it will impact you or your loans. With changes to student loan servicing, borrowers have even more reasons to stay on top of their finances and credit. Cann & Associates, Missouri Higher Education Loan Authority and Trellis Company, formerly known as the Texas Guaranteed Student Loan Corp. Public speaking can help you on your path to medical school and during your training to become a doctor. Many students are drawn to the field out of an interest in solving environmental problems. There are numerous job options, including dietitian, mental health counselor and respiratory therapist. Eventually, Next Gen will change all aspects of the system, from the application for aid to student loan repayment and collection activity. For most borrowers, this change likely will be the most obvious and noticeable. Get updates from U.S. News including newsletters, rankings announcements, new features and special offers. There is no set date yet for when it will be implemented, but you can expect communications from your loan servicer and FSA to let you know. State Protections for Student Loan Borrowers What to Know, The Institute for College Access & Success. The FedLoan Servicing contract was set to expire in December 2021, but PHEEA recently announced that it has signed a one-year contract extension until December 2022, which will allow more time to ensure that all loans are successfully transferred to other servicers. Longer term, the Department of Education has signed contracts with five companies that will work directly with federal student loan borrowers to provide direct customer service and back-office processing support for student and parent borrowers and partners at postsecondary institutions. Borrowers should stay up to date and organized as the Department of Education reforms student loan servicing. Borrowers whose loans were assigned to one of these servicers - about 16 million people - will be transferred to another servicer designated by Federal Student Aid, the agency that administers . Sign up to receive the latest updates from U.S News & World Report and our trusted partners and sponsors. Create a folder on your desktop to download and save your payment records and copies of your correspondence with your student loan servicer. Instead of interacting with individual loan servicers, FSA supported by the five contractors will become a one-stop shop for borrowers at every step of the financial aid process. Borrowers with loans serviced by PHEAA will also be transferred to another servicer designated by FSA and will receive more information from both PHEAA and FSA about their new servicer. Fully read any notices that you receive to understand who your new loan servicer will be and how to make payments. In addition, the temporary payment suspension and 0% interest benefits that borrowers currently receive due to the coronavirus pandemic will remain in place on your loans. In deciding a historic case over race-based admissions, Supreme Court justices tackled the thorny question of when, if ever, such policies should end. If you're not sure that your contact information is up to date, log in to your account at StudentAid.gov and double-check to ensure that you have provided accurate information to receive communications. As for changes related to Next Gen, FSA plans to provide more information as the initiative progresses. Race is no longer a factor that can be intentionally considered in the college admissions process. If you have federal direct student loans, Next Gen intends to provide a much more standardized borrower experience. The Supreme Court struck down a plan that would've given $20,000 in federal student loan forgiveness to many borrowers. Here are some other things you can do to get yourself organized: If you have any questions or concerns as these changes progress, you can always reach out to your loan servicer or Federal Student Aid. The decision to overturn decades of precedent all but guarantees a drop in enrollment of Black and Hispanic students in the countrys most elite colleges and universities at a time when those schools are trying to increase diversity. This includes FedLoan Servicing (PHEAA) and Granite State Management and Resources, or GSMR, who will stop servicing federal student loans after December 2021 when their contracts end, and Navient, which has signed an agreement with the Department of Education to transfer its accounts to another servicer. Navient has transferred its contract to Maximus Federal Services, and GSMR recently announced that all of its accounts will be transferred to EdFinancial Services. In the future, Next Gen will bring all of the operations of student loan servicing behind a centralized loan processing platform, in addition to making changes to accountability metrics for student loan servicers. With changes to student loan servicing, borrowers have even more reasons to stay on top of their finances and credit. Previous blog contributors include the Financial Counseling Association of America, National Foundation for Credit Counseling and American Student Assistance. When to Contact Your Student Loan Servicer. Veterans should check to see if a school accepts tuition assistance benefits and has positive student outcomes. In general, it's a good idea to keep your records in order so that you can be sure to receive important communications. Being organized is a good way to stay on top of your finances and credit.
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