There is currently $1.4 trillion in outstanding student loan debt, and the lion’s share of it ($1.3 trillion) is federal loans, with more than $1 trillion owned by the U.S. Department of Education. The Department has entered into contracts with nine of my members to service all of its loans.
- The current Department of Education compensation structure encourages servicers to do the right thing.
- SLSA opposes SB 1351.
- Student loan servicers help millions of consumers repay their education loans, and avoid the negative consequences of default.
- Bottom line: there are better solutions to address the real problem of student loan debt.