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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 origination.

The one servicing the loan is the student.

“Loan servicing” means the work of sending out statements, collecting payments, answering the help desk, tracking the accumulated interest, filing the tax forms, etc.

Interesting.

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

3. To make interest payments on (a debt).

There'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.

Definitely 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.

Yeah 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.

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