Senator Elizabeth Warren is calling on this student loan servicer for abusive behavior as student loan defaults are imminent.
Here’s what you need to know:
In a bitter letter to student loan servicer Maximus, Warren (D-MA) said Maximus had Navient’s 5.6 million student loan portfolio when Navient was expected to stop providing federal student loans by the end of the year. I want a guarantee that Maximus will protect the student loan borrower when undertaking. The contents of the letter are as follows.
Student loan relief will end shortly
Warren is deeply concerned that the Biden administration will not extend the student loan bailout from the Covid-19 pandemic after January 31, 2022. That is, student loan borrowers will resume repayment of federal student loans from February 1, 2022. Student Loan Payments and Student Loan Interest After a temporary student loan grace period of 22 months, fees will return to normal. (There are three ways to reduce student loan payments). Warren has expressed concern that if President Joe Biden does not extend student loan relief until late next year, millions of student loan borrowers will default on student loans. Despite her efforts to extend the student loan grace period, the US Department of Education said there would be no extension of this student loan bailout. At the same time, Warren was a major proponent seeking forgiveness for large student loans to borrowers, including cancellation of student loans up to $ 50,000. (The way to apply for a limited student loan permit is as follows).
Student Loans: “Ending the History of Student Loan Servicer Abuse”
While this student loan bailout is over, Warren wants to “end the history of student loan servicer abuse.” Warren specifically called for Maximus, including:
- Over the last eight years, Maximus has received over $ 800 million from the US Department of Education to manage student loans by default. (How to apply for a student loan forgiveness during the Biden administration)
- According to Warren, Maximus’ performance can raise concerns that student loan borrowers may be subject to “insufficient service” and “abuse.”
- Warren said that because Maximus mismanaged student loan defaults, thousands of student loan borrowers defended by borrowers “loans defaulted and tax refunds were improperly seized or wages. Was paid. ”
- Maximus has never managed a pre-default student loan, and Warren is concerned about Maximus’ ability to “meet higher accountability standards.”When
- Maximus has a potential conflict of interest as a servicer for all student loans that are currently the default, and has a new role as a servicer for the 5.6 million borrowers currently repaying student loans.
Navient will no longer serve federal student loans
Navient, which offers $ 300 billion in student loans to 12 million student loan borrowers, announced last month that it would end the federal student loan service of the US Department of Education. (What does this mean for your student loan). Navient announces a surprising move within a few days of parliament to avoid a major government closure and signs a final agreement to transfer federal student loan services for student loan accounts owned by the U.S. Department of Education to Maximus. bottom. (This is why Navient stopped student loans). Navient could face increased regulatory oversight from the US Department of Education, Congress, the State Attorney General, and the Consumer Finance Protection Agency (CFPB). Warren wants to ensure that Maximus (which, according to Warren, has a “checked history” of student loan services) will provide $ 449 billion of student loans to 13 million student loan borrowers. .. Given this increased liability, Warren wants to ensure that Maximus is transparent, responds to borrower complaints, and provides student loan borrowers with accurate and timely information. (If you need a student loan forgiveness, follow these 5 steps):
What Does This Mean For Your Student Loan
The US Department of Education has announced some major changes to student and student loan forgiveness in recent weeks. For example, the Ministry of Education will cancel a $ 2 billion student loan within a few weeks. If Navient is the current student loan servicer for federal student loans, Maximus could become the new federal student loan servicer. The US Department of Education will contact you in writing regarding this transition. You don’t have to do anything. Student loan terms such as interest rates, student loan repayment plans, and student loan terms remain unchanged. However, if Maximus becomes a new student loan servicer, you will pay Maximus for your student loan, so you will need to update your automatic payment information once the migration is complete. However, you will need to continue paying your student loan to Navient until notified by the Ministry of Education. Importantly, this is a federal student loan only, private loans are unaffected.
The end of the temporary student loan grace means that you need to have a game plan to repay the student loan. Make sure you understand all the options now. Here are some common ways to repay a student loan:
Student Loans: Related Materials
If you need student loan forgiveness, do the following five steps
How to Apply for a Limited Student Loan Forgiveness
Ministry of Education cancels $ 2 billion student loan
This is the person who is now eligible for student loan forgiveness