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A large part of it is that a student loan servicing company can be more profitable if they drive students into certain programs for doing deferrals and switchin
by awakeasleep 9y ago
A large part of it is that a student loan servicing company can be more profitable if they drive students into certain programs for doing deferrals and switching plans. These programs are clearly in the benefit of the servicer, to the detriment of the borrower, and CS reps have targets around it.
If the system was fully automated, how could you ensure it yielded the maximum profit? People could just figure out the best way to repay their loan without your 'sales funnel' pushing them in the direction you want to go.
- zaroth 9y agoAn automated company has no need to try to maximize short-term profits from individual users, it should optimize for long-term value to the most number of users, right? Driving adoption of the platform to the most users and ultimately maximizing aggregate long-term profit and value simultaneously?