Federal Student Loan Servicing: Strengths and Weaknesses/Financial Aid Administrator Perspective

image002Justin Draeger, President of the National Association of Student Financial Aid Administrators (“NASFAA”) presents the perspective of institutions and student financial aid administrators on how student loan servicing can be improved.

Individual Questions:
Why institutions are concerned about student borrower repayment (:42)
Competition as a strength of the direct lending system (:56)
Challenges presented by inconsistent practices among servicers (1:32)
The U.S. Department of Education (ED) as the main driver in formulating stronger servicing requirements (1:50)
Thoughts on  one single solution provider v. competition among multiple servicers (2:34)
ED’s outline for improving the student loan servicing system (1:38)
A possible congressional initiative: greater simplicity of repayment plans (1:57)
Dealing with opacity in practices among servicers: the potential value of a servicer manual (3:13)

Podcast Intro and Exit music by Mishka (FLT RSK) / CC BY-NC 3.0

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