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No servicing companies that work for the government collecting student loan dollars

• tssva 4y ago
  And what would be their basis for suing the federal government for changing the terms of loans the federal government originated and owns?
  • rdtwo 4y ago
    My thought is that the servicer can show Harm my having fewer loans to service. That would give them standing to sue that the whole process was done improperly and that Biden does not actually have the authority to cancel student loans.
    • tssva 4y ago
      That gave me a chuckle. Good luck with that. The contracts they signed with the government doesn't guarantee them any number or percentage of loans to service. By contract twice a year the federal government evaluates the loan servicers and decides what percentage of existing and new loans the servicer will receive. The contracts even contain terms which allows the government to completely block servicers from getting new loans at the government's sole discretion. Servicers also get a bonus depending upon percentage of loans they service which are in default. Reducing the loans would reduce the percentage of loans in default which means more bonus for the servicers.
      • rdtwo 4y ago
        Yeah perhaps not, that was always the question. Who has standing to sure the student loan reductions. If the Anwser is nobody that truly creates an interesting problem