Gov reducing from 9 student loan servicers to 1

[kimbersleep]

Just saw an article this morning stating that the Dept of Ed under the current administration wants to reduce from 9 companies that service student loans down to 1. The previous administration wanted to reduce from 9 servicers to 4. The final servicer hasn't been determined yet.

http://www.wcnc.com/mb/ext/news/nation-now/what-student-loan-borrowers-can-expect-in-trump-s-change-...

[Anonymous]

I read its Navient. The one with the most complaints. ugh. 

[Anonymous]

My loans were just transferred to Navient after coming out of default and in my one attempt to contact them, I am already not happy!  Can't even talk to them on the phone due to "high call volume".  My only option is to schedule a call back (three hours later), couldn't even wait on hold for a representative...  Not to mention just getting to that option was an ordeal!  Sigh...

[stellar]

Thanks for posting this. 

So it looks like only 4 are bidding, 2 of those are bidding as one.  Bidding is within the next few months.  And then the new servicer will be up and running within 18 months.

I have Great Lakes and have been happy with them.  Hopefully they win.  

If not, I may just pay my small loan off to avoid the possibility of them adding another account to my report or screwing up the reporting.

[kimbersleep]

---

@stellar wrote:

Thanks for posting this. 

So it looks like only 4 are bidding, 2 of those are bidding as one.  Bidding is within the next few months.  And then the new servicer will be up and running within 18 months.

I have Great Lakes and have been happy with them.  Hopefully they win.  

If not, I may just pay my small loan off to avoid the possibility of them adding another account to my report or screwing up the reporting.

---

Yes, Stellar, I saw the same thing as you -- that the final servicer hasn't been decided yet. Upthread someone said it was Navient but I can't find that info corroborated anywhere.

I just had a transfer from Mohela, who I was very happy with, to FedLoan. It went smoothly, even if it seemed to take longer than I'd have liked. No real opinion yet of FedLoan.

While consolidating to 4 servicers from 9, which is what the Obama administration wanted to do, seems OK to me as it keeps competition alive -- consolidating to just one servicer worries me. Where is the incentive to provide excellent service to borrowers if there are no competitors? I might talk to my representative in the U.S. House about the issue. Even if Congress doesn't have a say in the workings of the Dept of Ed, she might be willing to make a public statement of concern on behalf of borrowers.

[stellar]

quote kimbersleep:

While consolidating to 4 servicers from 9, which is what the Obama administration wanted to do, seems OK to me as it keeps competition alive -- consolidating to just one servicer worries me. Where is the incentive to provide excellent service to borrowers if there are no competitors?

I completely agree.  It may be easier for the gvmt to manage, but may not be better for us as consumers.

[stellar]

Looks like they scrapped that plan:

https://www.insidehighered.com/news/2017/08/02/department-education-scraps-single-servicer-plan-keep...

[LindysMom]

FedLoan holds my federal loans. Navient holds my private.

Literally any thought of Navient holding all of my loans makes me sick to my stomach.

[Anonymous]

---

@LindysMom wrote:

FedLoan holds my federal loans. Navient holds my private.

Literally any thought of Navient holding all of my loans makes me sick to my stomach.

---

Basically!

I have FedLoan for my fed loans that are eligible for Public Service Forgiveness and UHEAA for the ones that aren't.  I don't like the idea of only one company holding all of the country's federal student loans.  That's too big brother like for my taste.