Secretary
DeVos Announces Intent to Enhance FSA’s Next Generation Processing and
Servicing Environment
Creating the Foundation of
Tomorrow’s Student Loan Program
WASHINGTON—Today,
U.S. Secretary of Education Betsy DeVos announced her intent to transform how
Federal Student Aid (FSA) provides customer service to more than 42 million student
loan borrowers.
“The
FSA Student Loan Program represents the equivalent of being the largest special
purpose consumer bank in the world,” said Dr. A. Wayne Johnson, the new Chief
Operating Officer of Federal Student Aid (FSA).
“To improve customer service, we will take the best ideas and capabilities
available and put them to work for Americans with student loans. When FSA
customers transition to the new processing and servicing environment in 2019,
they will find a customer support system that is as capable as any in the
private sector. The result will be a significantly better experience for
students – our customers – and meaningful benefits for the American taxpayer.”
The
anticipated FSA Next Generation Processing and Servicing Environment will
provide for a single data processing platform to house all student loan
information while at the same time allowing for customer account servicing to
be performed either by a single contract servicer or by multiple contract
servicers. This new approach is also expected to require separate acquisitions
for database housing, system processing and customer account servicing which
will allow for maximum flexibility today and into the future. FSA expects these
contemplated changes to the servicing and processing environment to provide the
opportunity for additional companies to submit proposals for contracting with
FSA.
“Doing
what’s best for students will always be our number one priority,” said
Secretary DeVos. “By starting afresh and
pursuing a truly modern loan servicing environment, we have a chance to turn
what was a good plan into a great one.
“I
hired Dr. Johnson for his extensive private sector expertise, his fresh perspective
and his innovative thinking. After just
a few weeks on the job, Wayne has already identified potential ways to
modernize FSA and to leverage new technology that will not only enhance the
customer service experience for borrowers but will also protect taxpayers.”
Secretary
DeVos recognizes the opportunities Dr. Johnson has identified to enhance FSA’s Next Generation Processing and Servicing
Environment and accordingly the Department has cancelled the current
student loan solicitation (Solicitation
#ED-FSA-17-R-001).
Contracts
with current FSA student loan servicers expire in 2019. Dr. Johnson and his team will have the new
processing and servicing environment in place prior to the expiration of the
current contacts.
You
can view the Pronouncement on FSA’s Next Generation Processing and Servicing
Environment here.
You
can view the Cancellation Notice here.
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