Governance, Risk & Compliance

Governance, Risk & Compliance

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June 21, 2013

FMS Introduces New Web Portal for Defaulted Student Loan Servicing



To simplify the debt collection experience, provide complete transparency and enhance the borrower experience, Financial Management Systems (FMS), a U.S. Department of Education’s Federal Student Aid (FSA) contractor, recently released a website that provides self-service options to defaulted student loan borrowers.

With the help of amortization calculators and a payment engine provided online, www.MyEdDebt.io, borrowers who have outstanding loan obligations will be able to make well-informed decisions on their repayment options. Initially, only those borrowers who are serviced by FMS under its contract with FSA will be able to access the website.

“The Web and mobile devices are how people connect and relate. Student loan repayment can be a confusing and complex process. We want to make the process easier and simpler for borrowers,” said Balaji “Raj” Rajan, CEO of FMS, in a statement.

In addition to payment processing, users can benefit from a number of other features provided in website. For instance, they can review all available repayment options and their eligibility for “Reasonable and Affordable” payments, where a borrower’s payments are reduced using rules similar to the Income Based Repayment plan for non-defaulted borrowers. Using the dashboard, they can get loan-level detail, payment history, outstanding balance and other key information. Borrowers are also able to update their demographic and employment information.

Rajan added that there are no personalized websites for borrowers today that are helpful. “Most sites contain only parts of the loan and repayment information needed. We believe there’s a better way and that together, FSA and its private sector partners in loan servicing and collections, can create a multi-channel communication strategy that is simpler, easier, and more transparent for borrowers. MyEdDebt.io is a strong first step in that direction.”

In the future, www.MyEdDebt.io has plans to provide secure Web chat with FMS’ Default Resolution Specialists for real-time support in repayment planning. The site will also pre-fill secure and encrypted downloadable forms necessary to authorize non-standard repayment. Borrowers will be able to enroll in these plans by providing electronic signatures.




Edited by Rachel Ramsey
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