Jennifer Wang, policy director of Young Invincibles, released the following statement about today’s announcement:
“The Administration’s joint statement of principles is long overdue and welcome news to borrowers trying to repay their debt. We have recommended for some time that the Administration consider implementing new servicing protections for borrowers and urged it to address major problems in the student loan servicing market to prevent student loan default.”
“Creating effective loan servicing notification and loan transfer standards can improve the repayment process for roughly 40 million student borrowers. We are thrilled the Administration has committed to moving forward on their plans to improve servicing. We are also appalled, but not shocked, by the findings of the Consumer Financial Protection Bureau on servicer failure. These findings echo what we commonly hear from aggrieved borrowers. We look forward to seeing the results of the Administration’s efforts to improve student loan servicing and hope they will continue to make changes that will ease the repayment process.”
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