Spending Bill Gives Flexibility to Borrowers Seeking Loan Consolidation

Clare McCann was quoted in Inside Higher Ed about language in the omnibus spending bill that allows student loan borrowers to select any servicer when consolidating their federal loans:

Clare McCann, a senior policy analyst with New America's education policy program, said the change was policy making via earmark.

"We really need a wholesale rethinking of how to do student loan servicing in an effective way," she said.

The direction of the federal government will be shaped by the decisions of Education Secretary Betsy DeVos, McCann said. After DeVos withdrew Obama administration guidelines for the next round of servicer contracting, advocates and policy researchers are waiting to see what alternative course she will stake out.