Education Dept. Spells Out New Student Borrower Protections
U.S. Education Secretary John King Jr. on Wednesday announced new guidelines that aim to provide more transparent information for borrowers and more accountability for the companies that manage repayment of federal student loans.
The Education Department released those standards in a 56-page memo in coordination with the Treasury Department and the Consumer Financial Protection Bureau. They focus on several areas, but a primary aim is ensuring that loan servicers are providing borrowers with complete information about the kinds of repayment plans they qualify for based on their income levels. Plans to create a single streamlined web platform for borrowers also reflect the goal of increased transparency.