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After rebuke from Congress, Education Department suspends reshuffling of defaulted student loans
Inside Higher Ed: The Department of Education planned this month to begin reshaping the role of private debt collection firms in handling student loans by pulling defaulted borrower accounts from a handful of large private contractors.
Lawmakers who control the department’s budget had other ideas.
After a recent Senate spending package warned the department against dropping the debt collectors, the plan is on hold. And it’s not clear how those companies will figure into the Trump administration’s proposed overhaul of student loan servicing.
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