US Dept. of Education Proposes New Student Loan Payment Portal
The U.S. Department of Education is proposing to create a centralized interface for federal student loan payments.
Borrowers currently make payments to one of several servicers of their federal student loans. If they have questions, they visit the servicer’s web site or call the servicer’s toll-free number. If the borrower’s servicer changes, the payment address, website and toll-free number all change. If the borrower signed up for auto-debit with the old servicer, the borrower must sign a new agreement with the new servicer.
Under the U.S. Department of Education’s proposal, borrowers will use a single U.S. Department of Education website, a single toll-free number and a single payment address. They will need to sign up for auto-debit only once. Borrowers will no longer need to know the name of their servicers, and instead will associate their federal student loans with the U.S. Department of Education.
The U.S. Department of Education will also standardize communications with borrowers and standardize some policies across servicers, such as the application of prepayments.
The new student loan management platform with be more convenient for borrowers and will provide better customer service.