The U.S. Department of Education is planning to have a new program for student loans that will be ready by 2019
The U.S. Department of Education announced that it will be working to implement this new system for student loans before contracts with current Federal Student Aid (FSA) servicers expire in 2019. U.S. Secretary of Education Betsy DeVos is leading this effort.
In order to complete the goal of revamping student loans, DeVos has hired Dr. A. Wayne Johnson as the new Chief Operating Officer of FSA. Johnson has experience in the private sector and will be working to modernize the FSA.
“When FSA customers transition to the new processing and servicing environment in 2019, they will find a customer support system that is as capable as any in the private sector,” Johnson said in a statement. “The result will be a significantly better experience for students – our customers – and meaningful benefits for the American taxpayer.”
The U.S. Department of Education claims that the new program for student loans will let users access all their loan information from a single data processing platform. However, it will also allow one, or multiple, servicers to provide customer account servicing.
As a result of this announcement, Department of Education is canceling its current solicitation for student loans. This is “Solicitation #ED-FSA-17-R-001.” DeVos claims that starting fresh with this new system will take what was a good plan and make it a great one.
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