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Seven Ideas for a Fair Student Loan Servicing System

May 14, 2015
Student Loans

The Center for Responsible Lending applauds the CFPB for its continued focus on student loan servicing. Good loan servicing benefits both the borrower and the lender by helping borrowers successfully pay down their loans.

As the CFPB holds a field hearing on student loan servicing today in Milwaukee, we offer seven ideas for a fair student loan servicing system:

  1. Prevent default by identifying at-risk borrowers and taking aggressive steps to enroll them in income-based repayment plans or providing other loan modifications
  2. Re-enrollment should be as simple as possible
  3. Fair allocations of payments, minimization of fees, and prompt payment processing
  4. Allow borrowers to pay down loans as quickly as possible
  5. Servicemember protections
  6. Swift resolution of errors
  7. Access to loan documents and loan history

Download the PDF for more information on each of the ideas. (PDF)