Though FSA is within its fourth version of agreements into the this new repayment program, facets provides stayed uniform through the years, including undertaking one web site to have consumers; improving consistency across the servicers; and you will allowing FSA to-be much more agile and proper in the solving issues that occur. 18 The computer, that is today called the Second Age group Monetary Services Ecosystem (NextGen), 19 are relaunched within the just after running into litigation and protests away from servicers and you may debt collectors trying protect its base contours. 20
There is a lot at stake. Payments to education loan servicers and you can debt collectors rates the newest government regulators roughly $2 mil a year, 21 and you will any transform on system you certainly will slashed latest builders out. However, a question who has lingered for decades ‘s https://www.carolinapaydayloans.org the ability away from FSA so you’re able to manage these types of entities. twenty two And you can, unfortunately for FSA, a beneficial damning statement recorded by Agency out of Education’s Office off the fresh new Inspector General (OIG) brings new proof one FSA is failing continually to safely manage brand new passions regarding borrowers. 23
Brand new statement features multiple cases of FSA’s incapacity so you can oversee loan servicers, the personal contractors one gather repayments; offer counseling; and procedure gurus having 34 billion consumers.