Outstanding student debt is currently the second-largest source of consumer debt in the United States. As a result, outstanding student loan debt, related delinquency rates, and surging consumer complaints, have caused regulators to define guidelines and raise the standards for the servicing of student loans.
As the industry continues to grow, questions have come up about whether the Department of Education or the Consumer Financial Protection Bureau is the best place to enforce federal student loan origination, servicing issues, and to address borrower complaints. Additionally, federal regulators as well as state attorneys general also launched inquiries into or filed lawsuits against student loan servicers, alleging unfair, deceptive, and abusive servicing practices among other items.
The student loan industry must remain focused on improving profitability while being challenged to meet these increased regulatory requirements and compliance measures. Additionally, it must enhance the customer experience, leverage more advanced technology and data analytics, provide fast, high-quality responses to its consumers, manage credit risk, and provide better privacy and security for its consumers.
Navigant can provide a full range of student loan industry services including, but not limited to: