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    Subject Term: "Credit history"

    1 publication with a total of 1 open recommendation including 1 priority recommendation
    Director: Melissa Emrey-Arras
    Phone: (617) 788-0534

    1 open recommendations
    including 1 priority recommendation
    Recommendation: To strengthen management of the Direct Loan Program and ensure good customer service for borrowers, the Secretary of Education should direct the Office of Federal Student Aid's Chief Operating Officer to review its methods of providing instructions and guidance to servicers, identifying areas to improve clarity and sufficiency, and ensure consistent delivery of instructions and guidance to ensure program integrity and improve service to borrowers. For example, the Department could consider implementing a detailed, common servicing manual for the Direct Loan program.

    Agency: Department of Education
    Status: Open
    Priority recommendation

    Comments: The Department of Education agreed with this recommendation and, as of October 2016, has reviewed its guidance to servicers. It has issued clarifications to servicers in several areas. In addition, the Department is in the process of an acquisition for a new loan servicing solution and said the procurement will include detailed requirements, currently under development, which will be explicitly structured to promote consistency; high standards of performance; and clarity for servicers, borrowers, and other program participants. These requirements will be part of the final contract and, after award, will be available to the public. The Department said the combination of more explicit requirements focused on consistency and a reduced number of vendors will significantly simplify the process for delivering guidance and instructions related to student loan servicing. As of May 2017, Education has suspended activity to address this recommendation, pending the resolution of a related bid protest. Upon resolution of the bid protest, Education needs to demonstrate that its final contract for a new loan servicing solution is structured to provide clear and consistent instructions and guidance to servicers to ensure program integrity and improve service to borrowers.