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FedLoan Servicing, one of the nation’s largest federal student loan servicers, ended its contract with the Department of Education in 2021. As a result, millions of student loan borrowers were ...
In July 2021, FedLoan Servicing announced that it would stop servicing federal student loans when its contract ended in December 2021. Since then, it extended its contract one more year to allow ...
CornerStone was previously one of eight approved federal student loan servicing agencies that provided loans nationwide. Although Cornerstone was contracted to service loans through 2022, the ...
In 2021, student loan servicers began dropping out of the federal student loan business, including FedLoan Servicing on July 8, Granite State Management and Resources on July 20, and Navient on September 28. [40] According to Sallie Mae, as of 2021, 1 in 8 families are using private student loans when federal financing does not cover all ...
Around 44% of federal student loan borrowers who begin repayment in October have a new loan service provider, according to the Consumer Financial Protection Bureau, after three loan service ...
Around 44% of federal student loan borrowers who had payments resume in October have a new loan service provider. That transition has been fraught with delays and errors, causing some borrowers to ...
Funding for new direct loans in the Federal Direct Student Loan Program increased from $12.6 billion in 2005 to $17.8 billion in 2008. [7] President Barack Obama organized all new loans under the Direct Loan program by July 2010.
Federal student loan borrowers had a reprieve in payments for more than three years as a pandemic-era repayment pause was extended multiple times since it instated in March 2020.
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