Listen to our third podcast in partnership with Radio Higher Ed.
See below for detailed “show notes” from this recording.
An Interview with Justin Draeger, President of the National Association of Student Financial Aid Administrators (“NASFAA”)
Title: Direct Loan Servicing: Strengths and Weaknesses/The Financial Aid Administrator Perspective
Short Description: Justin Draeger, President of the National Association of Student financial Aid Administrators (“NASFAA”) presents the perspective of institutions and student financial aid administrators on how student loan servicing can be improved.
Why institutions are concerned about student borrower repayment.
Competition as a strength of the direct lending system.
Challenges presented by inconsistent practices among servicers.
The U.S. Department of Education (ED) as the main driver in formulating stronger servicing requirements.
Thoughts on one single solution provider v. competition among multiple servicers.
The ED’s outline for improving the student loan servicing system.
A possible congressional initiative: greater simplicity of repayment plans.
Dealing with opacity in practices among servicers: the potential value of a servicer manual.