The frustration with such an easy fix being just out of reach has managed to bring together once-sworn enemies. The coalition of labor organizations, consumer advocacy groups, and loan servicers seek to pressure the White House to implement what Ben Miller, senior director for post-secondary education at the Center for American Progress, described as a “no-brainer.”
Jack Remondi, Navient’s chief executive, told the consumer bureau in June that a multi-year student loan system is among his recommendations that have the “greatest potential” to reduce loan defaults.
There’s little doubt that such a system would save Remondi’s company money. But it also would allow servicers such as Navient to focus their attention on aiding the most distressed borrowers, Miller said. “There are a lot of areas where servicers and consumer groups don’t always agree, but this is such an obvious thing that’s better for everybody,” he added.
This article was provided by Bloomberg News.