Ed. Dept. Loan Service Contracts Legal, Says Claims Court

Law360 (August 1, 2019, 6:19 PM EDT) -- The U.S. Department of Education acted legally both when it canceled a student loan debt collection contract solicitation and when it launched a more comprehensive replacement, despite its "far from perfect" procurement processes, the U.S. Court of Federal Claims ruled Wednesday.

While "far from procurement paragons," the Education Department's three Next Generation Financial Services Environment solicitations reasonably bundled together debt collection with other student loan services to provide a "cradle-to-grave" approach to loan servicing and would not cause loan servicers to violate debt collection law, Judge Thomas C. Wheeler ruled.

"There is no such thing as a perfect procurement, and the...

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