The Department of Education is sending out a new contract for a single provider to bid on to service millions of student loan accounts.
It’s going to take some time to wander through all the documents but one initial issue jumped out at me.
It appears the Department of Education is removing the student loan servicer from including the Payback Playbook in future consumer communications. At least that’s the way I read it. – Source
The description of services in the Federal Loan Servicing Requirements that was sent out included a section marked 240000.
The Student Loan Payback Playbook was an effort put forth by the Consumer Financial Protection Bureau (CFPB) the better assist student loan debtors with options on how to deal with their loans.
The CFPB sample document of the Payback Playbook is below.
The CFPB had said, “The first-of-its-kind prototype student loan Payback Playbook outlines repayment options for consumers who may be struggling to keep up with their monthly payment or trying to choose among dozens of plans. The Payback Playbook that most borrowers receive from their servicer will help cut through the clutter by clearly presenting three personalized repayment options.”
In 2016 the CFPB said, “Millions of consumers needlessly fall behind on their student loan debt, despite their right under federal law to a payment they can afford,” said CFPB Director Richard Cordray. “The Payback Playbook, which has grown out of our joint work with Illinois Attorney General Lisa Madigan and her colleagues, is designed to help ensure student loan servicers provide personalized information, tailored to the borrower’s individual situation. This will help these borrowers take action, stay on track, and steer clear of financial distress.”
As part of the student loan servicing bidding, one of the bidders asked for clarification on the inclusion of the Payback Playbook in the contract. The Department of Education response is that requirement has been removed.