Senator James Lankford (R-OK) and Senator Jeanne Shaheen (D-NH) today urged the U.S. Department of Education to remove the limitations for Not-for-Profit (NFP) organizations servicing federal student loans, to better streamline the program.:
In a letter to Secretary Duncan, the senators referenced the recent hearing in the Senate Appropriations Committee. They reiterated their expectation, based on Secretary Duncan’s recent testimony, that the department will reexamine and eliminate the current 25 percent limitation of NFP loan allocations, and allow the loan servicers to compete equally and receive loan allocations in accordance with their performance.
“We are asking the Department of Education to keep their word when they evaluate how student loans are distributed to the loan contract servicers,” said Lankford. “Our main focus is to ensure the six NFPs nationally, including one in Oklahoma, aren’t treated any differently from the rest of the loan servicers. The allocations should reflect performance, not be subject to arbitrary limitations.”
