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In this case, the government is who is giving out the loans, and it’s been that way since 2010. Then they pay someone else to service the loan after originatio
by mr_cyborg 4y ago
In this case, the government is who is giving out the loans, and it’s been that way since 2010.
Then they pay someone else to service the loan after origination.
- kgwgk 4y agoThe one servicing the loan is the student.
- zaroth 4y ago“Loan servicing” means the work of sending out statements, collecting payments, answering the help desk, tracking the accumulated interest, filing the tax forms, etc.
- kgwgk 4y agoInteresting. The (edit: one) meaning of "loan servicing" used to be only (edit: not only) paying - not (edit: also) collecting payments. https://ahdictionary.com/word/search.html?q=service https://ahdictionary.com/word/search.html?q=service 3. To make interest payments on (a debt).
- onlyrealcuzzo 4y agoThere's a difference between service payments and servicing / a debt servicer. IIUC, "service payment" comes from the fact that you are paying for a service - someone is providing you with debt as a service... The debt servicer.
- kgwgk 4y agoDefinitely there is a difference between paying and collecting payments! I was aware of "servicing a loan" as "paying the interests". But I've found that the "administrative" meaning also goes back many decades.
- zaroth 4y agoYeah it’s a bug for sure. ‘Loan service processor’ got shortened to ‘loan servicer’ which definitely steps on the toes of ‘debt service’. Someone should open a ticket.