By Yasmeen Abutaleb and Jeff Mason WASHINGTON (Reuters) – U.S. President Donald Trump moved to undermine Obamacare dramatically late on Thursday by cutting off subsidies to health insurance companies for low-income patients, sparking threats of legal action and concern of chaos in insurance markets. The decision is the most dramatic action Trump has taken yet […]
Government to switch to 1 student debt servicing company
WASHINGTON (AP) — The Education Department has announced it will move servicing of $1.3 trillion in federal student loans to a single provider.
The department said Friday the change will improve customer service and increase oversight. No details were given on when the provider will be chosen.
Currently, there are ten companies servicing student loans. In an op-ed published Friday, Education Secretary Betsy DeVos calls the previous system, put in place under President Barack Obama, “chaotic.”
She adds, “Students will now be treated as valued customers and afforded the protections and respect they deserve.”
Rohit Chopra, Senior Fellow at the Consumer Federation of America, raises concerns that the government will be too reliant on a single company. He adds that the change will do little to tame student debt defaults.
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Fri, Oct 13, 2017