As the government has been working diligently to continue to provide student loan relief to hundreds of thousands of borrowers, the student loan servicers themselves have been under the spotlight.
Maximus, a long-time veteran in the industry when it comes to dealing with borrowers in a defaulted status, has recently come under fire for their handling of student debt accounts.
Senator Elizabeth Warren, a former Economist, and Law Professor slammed the company over concerns of the lack of protection that borrowers may face when the transition from previous student loan giant Navient is complete.
Among the concerns expressed by the Senator, borrowers may face the following issues:
- Poor customer service
- Abusive practices
- Improper default status updates
- Wage garnishments
- Tax liens
The beleaguered company has also been in the crosshairs of the Department of Education after defiance of an order two years ago as a result of misbilling more than 16,000 students. Now set to take over almost half a trillion dollars in debt by the end of the year, Maximus is expected to respond to queries within the next two weeks.
Several additional loan servicers have exited the student loan servicing business as companies struggled to stay afloat amid long-term pandemic relief and crashing revenues.
- Fed Loan Servicing
- Granite State Management and Resources
- Pennsylvania Higher Education Assistance Agency
Students who haven't been notified of approval for current debt forgiveness can check with their current servicers or the Department of Education for any changes to their loan accounts. Additional updates are being sent to borrowers via email or phone notifications.