Student Loan Servicing: Oversight is Crucial

April 24th, 2009 by pdelatorre

As the debate over student loan reform continues, it is important for policy makers to make sure that there will be vigorous oversight of the firms that service student loans. Student loan borrowers should be protected from overzealous and irresponsible lenders and loan servicers—for both federal and private loans—that engage in abusive practices.

A representative of the Direct Loan Coalition sent around a heartbreaking story today from the Consumer Warning Network about a family that was berated by Sallie Mae while trying to clear up their son’s (presumably private) student loan after his death.

Here is the first half of the interview:

 

This is not acceptable behavior. It is stories like this (not to mention the many that Higher Ed Watch has collected) that call into question claims by lenders that the quality of services provided to students is always better in a more competitive environment. 

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