The process involves managing federal student loans on behalf of the U.S. Department of Education. This encompasses a range of activities, including billing borrowers, processing payments, and offering support related to repayment plans and deferment options. These services are crucial for borrowers throughout the lifecycle of their student loans, from initial disbursement to eventual repayment or discharge.
Effective management of these loans is vital for both borrowers and the government. For borrowers, it ensures access to accurate information and assistance in navigating the complexities of repayment. For the government, it aims to maximize loan repayment rates, minimizing taxpayer burden. This function evolved as the volume of federal student loans increased, leading to the need for specialized entities to handle the administrative burden.
