Secretary DeVos Announces Intent to Enhance FSA’s Next Generation Processing and Servicing Environment

Having trouble viewing this email? View it as a Web page.

US Department of Education

FOR IMMEDIATE RELEASE

Contact: Press Office
(202) 401-1576 or press@ed.gov

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.

###