NAICU Washington Update

Education Department Seeks Proposals for New Student Loan Servicers

February 25, 2022

The Office of Federal Student Aid (FSA) plans to seek proposals in spring 2022 to bring in multiple student loan servicers to administer more than 35 million student loan accounts. The newly dubbed Unified Servicing and Data Solution (USDS) is planned to improve FSA’s technical infrastructure and allow for a better student loan borrower experience. The new contracts are expected to go live in December 2023.

To ensure a better experience, borrowers will be able to visit servicer websites and receive communications that are co-branded with FSA. They will also be able to more easily access tools FSA has built through improved integration with FSA’s website. This integration will be phased-in to ensure borrowers have enough time to transition. Additionally, borrowers who need access to programs that are currently assigned to one servicer, such as the Public Service Loan Forgiveness and the TEACH grant program, will be able to access those programs through the FSA website and be able to receive service from contractors who are directly managed by FSA. 

FSA welcomes feedback from potential respondents, higher education stakeholders, and the general public. Information can be sent to Contracting Officer Jackson McClam at with the subject line “USDS RFI Response.” Responses are due by March 9, 2022. Responses should be no more than three pages in length. 

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