ED Data Shows 109% Increase in Student Loan Defaults Over Last 4 Years; Says Small Businesses Can Handle

Last Friday we learned that U.S. Court of Federal Claims Judge Thomas C. Wheeler granted the Department of Education's (ED) motion to dismiss the case of FMS v. USA as moot. Read about that here. ED claimed the case was moot because it cancelled the Solicitation for unrestricted private debt collection services that were the subject of the protests. 

As justification for the cancellation, the Government offered two key points:

Last August, Federal Student Aid Fund (FSA), the part of ED that manages federal student loans, also cancelled a Solicitation for servicers and announced its "Next Generation Processing and Servicing" (NextGen). This marked the beginning of a major shift by ED in the way it expects to service its loans -- from beginning to end. At the time, Dr. A. Wayne Johnson, who is running the NextGen program, said: 

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