New Delhi, Sept. 16 -- Federal student loan borrowers may soon see their accounts transferred to new servicers as part of the US Department of Education's effort to improve efficiency and customer service. The move, however, has raised concerns over potential lapses in communication, account errors, and borrower confusion.

The Department of Education said accounts tied to programs like Public Service Loan Forgiveness (PSLF) will be shifted from MOHELA to other servicers. Similar transfers have occurred over the years when contracts or loan portfolios expire. Officials say the transitions aim to make repayment easier, but past transfers have sometimes caused problems, including missing payment history and delays in reporting borrower acco...