FedLoan Cancels Education Contract Affecting 8.5M Student Loan Borrowers




FedLoan will no longer manage student loans for the Education Department.
LSU students line up to receive the COVID-19 vaccine at a mass vaccination event at Tiger Stadium (JC Canicosa / Louisiana Illuminator)

FedLoan Servicing, which manages the U.S. Department of Education’s student loan repayment programs, announced Thursday that it will not renew its contract, which will expire on December 14.

Also known by its official name, the Pennsylvania Higher Education Aid Agency (PHEAA), the company manages loan repayments of approximately 8.5 million, or 20% of all federal student loan borrowers nationwide, and is the only contractor to manage federal loan forgiveness. government. program.

IN news release, the company said it would not accept an extension of its 12-year contract “beyond what is necessary to ensure a smooth transition for borrowers.”

“In the 12 years since PHEAA accepted the terms of its federal service contract, federal loan programs administered by the US Department of Education have become more complex and complex, while the cost of servicing these programs has skyrocketed,” they said. in company. …

Previous articleDelta variant of new coronavirus increases COVID-19 in Louisiana
Wesley Mueller

Wes Mueller traces his journalistic roots back to 1997, when, at the age of 13, he created and launched a hyper-local news website for his New Orleans neighborhood. For the next 22 years, he has since worked as a journalist for the Times-Picayune in New Orleans, the Sun Herald in Biloxi, WAFB-9News CBS in Baton Rouge, and Enterprise-Journal in McComb, Mississippi. Much of his work involves writing First Amendment reports and overseeing municipal and state governments. He has received several awards and accolades, including the McClutchie National Presidential Award, the Associated Press Freedom of Information Award, and the Mississippi State Press Association Daniel M. Phillips Award for Freedom of Information. Mueller is a New Orleans native, Jesuit High School graduate, University of New Orleans alumnus, veteran US Army paratrooper, and additional English teacher at Baton Rouge Community College. He lives in Ponchatula, Louisiana with his teenage son and wife, who also works as a journalist.


Source link