U.S. Government, Not Banks, Should Service Loans, Professors Argue

By Chronicle Staff. Report: “Federal Student-Loan Servicing: Contract Problems and Public Solutions”
Authors: Eric M. Fink, an associate professor at Elon University’s School of Law, and Roland Zullo, an associate research scientist at the University of Michigan at Ann Arbor’s Institute for Research on Labor, Employment, and the Economy
Summary: Students are not well served by the student-loan-servicing industry, the researchers argue, as there is an inherent conflict between the profit motive and responsive, quality service. Given the large number of complaints against loan servicers by students, Mr. Fink and Mr. Zullo argue that the current loan-servicing model should be reimagined. More...