On July 7, the Education Department said it would provide $25 million to help servicers of student loans meet new federal regulations administered by the Obama administration.
The department will make the money available to banks and other private financial institutions that have made or serviced loans through the Federal Family Education Loan Program (FFEL). The funds will be used to help the servicers retrain workers and deploy some to different companies that need to comply with the new federal laws, which stipulate that all student loans must now be made through the government’s Direct Loan Program and not private lenders (The Hill).