The U.S. administration has been persistent in prolonging the student loan payment moratorium ever since the outbreak of the Covid-19 virus back in March 2020. The pause has once again been approved by the Biden administration, setting the new date to January 31st 2022.
By temporarily stopping the loan payments, a new problem arose; two huge student loan servicer companies decided not to continue their business with the U.S. Department of Education.
This has been a serious blow for all the parties involved. Not only is the federal income halted and the proficient companies are opting out, but the chaos of migrating the entire student loan database is yet to begin.
Needless to say, historically, such transfers have always been somewhat disastrous, resulting in data loss and inaccurate payment histories.
The servicers in question, Granite State Management and Resources, and FedLoan, handle over 10 million borrower accounts combined.[Read more…] about The Overuse of Student Loans and Biden Student Loans Extension