5 Facts About the Proposed Student Loan Repayment System
This post originally appeared on www.americanprogress.org.
By: Colleen Campbell | April 17, 2018
Student loan borrowers may be in for a big surprise in 2019. The U.S. Department of Education’s Office of Federal Student Aid (FSA) is proposing big changes to the system that allows more than 37 million borrowers to repay their debt.
The new system, which is called the Next Generation Financial Services Environment (NextGen), will go into effect in 2019 and inevitably dictate how borrowers repay their loans for decades to come. With the goal of making repayment much more straightforward for borrowers, the plan calls for a single U.S. Department of Education-branded website where borrowers can manage their accounts; a system that allows multiple servicers to work accounts; and upgrades to FSA’s technology and data systems. Ultimately, NextGen could be a win for those trying to get out of debt—but FSA has a lot of work to do to get it right.
Colleen Campbell is the Associate Director for Postsecondary Education at the Center for American Progress.
Posted on 19 April 2018
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