by The Collection’s Agitator
Hey Tribe, how are you managing?
You know, in the midst of the current “normal,” I saw a blurb last week that caught my attention. It flew so far beneath the radar that I’d bet $50 bucks you didn’t see it either. Just when I think I’m on too many email lists and can’t keep up with the noise, one surprises me and reaffirms my continued presence on the lists.
I’m talking about a headline that Navient- the spawn of student loan servicing is leaving the business. I was so taken aback I had to read the headline twice. National Consumer Law Council’s (NCLC) October 21st announcement – created within me anticipation that somehow the U.S. Department of Education had finally had enough negative press about the company’s botched management of millions of student loan accounts; they were being fired. That was not the case.
Instead, I learned that this past September, Navient announced its intention to end its federal contract with the Department of Education. In doing so, it suggested its successor- Maximus Federal Services, Inc. Now tell me, how is an outgoing bad actor allowed to recommend their replacement? NCLC and its partners previously sued Maximus for the very abhorrent loan servicing practices frequently claimed against Navient. If it walks, talks, looks, sounds, and smells like…. it likely is.
While this bit of news did not instill confidence that student loan holders would receive improved, accurate and transparent communication. There was a bright spot. NCLC was appointed to the Student Loan Rulemaking Committee, representing the legal aid community. NCLC’s participation in the rulemaking process represents the interest of different stakeholders- one being borrowers.
I’m not expecting an immediate change in philosophy and practices. However, there is a sliver of hope that with the NCLC loudly pushing and pulling for the average student loan borrower, some, if not the majority, could see some positive movement during this administration’s tenure. I’m still sending my monthly payment to meet the deadline.