WASHINGTON (AP) — The Education Department has announced it will move servicing of $1.3 trillion in federal student loans to a single provider.

The department said Friday the change will improve customer service and increase oversight. No details were given on when the provider will be chosen.

Currently, there are ten companies servicing student loans. In an op-ed published Friday, Education Secretary Betsy DeVos calls the previous system, put in place under President Barack Obama, "chaotic."

She adds, "Students will now be treated as valued customers and afforded the protections and respect they deserve."

Rohit Chopra, Senior Fellow at the Consumer Federation of America, raises concerns that the government will be too reliant on a single company. He adds that the change will do little to tame student debt defaults.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.