From Dallas Express · Dallas Express · · 1m 20s
New Student Loan Portal Launch
Treasury and Education launch online center for defaulted student loans.
In brief
Treasury and Education launch online center for defaulted student loans. U.S. Treasury and Education Department created a portal to help borrowers with defaulted federal student loans return to repayment through rehabilitation or consolidation. Originally reported by Dallas Express.
New Portal For Defaulted Student Loans
The U.S. Department of the Treasury and U.S. Department of Education launched a new online portal to help borrowers with defaulted federal student loans understand their options and return to repayment.
Online Center Features
Borrowers can review default consequences, compare options, apply for rehabilitation or consolidation, make payments, and review repayment plans through the portal.
Rehabilitation Process
Borrowers applying for rehabilitation can upload documents, review an estimated payment, electronically sign agreements, and track applications online.
Consolidation Benefits
Borrowers can consolidate defaulted loans and access a temporary 1% interest-rate reduction by enrolling in automatic payments.
Early Results
The partnership reported a 69% increase in approved rehabilitation applications and a 95% increase in consolidations following a technical issue correction.
User Feedback
89% of users said the application was easy, 86% understood next steps, and 84% found the process reasonable.
Treasury Takes Over Collections
Treasury will assume operational responsibility for collecting defaulted student loan debt using private agencies to help borrowers return to good standing.
The bottom line
U.S. Treasury and Education Department created a portal to help borrowers with defaulted federal student loans return to repayment through rehabilitation or consolidation.
