4 ms·

The one servicing the loan is the student.

• zaroth 4y ago
  “Loan servicing” means the work of sending out statements, collecting payments, answering the help desk, tracking the accumulated interest, filing the tax forms, etc.
  • kgwgk 4y ago
    Interesting. The (edit: one) meaning of "loan servicing" used to be only (edit: not only) paying - not (edit: also) collecting payments. https://ahdictionary.com/word/search.html?q=service https://ahdictionary.com/word/search.html?q=service 3. To make interest payments on (a debt).
    • onlyrealcuzzo 4y ago
      There's a difference between service payments and servicing / a debt servicer. IIUC, "service payment" comes from the fact that you are paying for a service - someone is providing you with debt as a service... The debt servicer.
      • kgwgk 4y ago
        Definitely there is a difference between paying and collecting payments! I was aware of "servicing a loan" as "paying the interests". But I've found that the "administrative" meaning also goes back many decades.
        • zaroth 4y ago
          Yeah it’s a bug for sure. ‘Loan service processor’ got shortened to ‘loan servicer’ which definitely steps on the toes of ‘debt service’. Someone should open a ticket.