Five Facts About the Proposed Student Loan Repayment System
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. However, the current financial system is fragmented, with borrowers repaying their loans to one of nine different private contractors, all of whom run their own websites; these services also use a handful of the different technology platform. This report considers five points of the NextGen proposal, focusing on areas where borrowers should pay particular attention as FSA moves forward.