Montana student loan servicer announces restructuring

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HELENA, Mont. (AP) — Montana's only student loan servicer is in the midst of an ongoing restructuring as it faces an expected 40 percent loss in clients by the end of the year.

The Independent Record reports (http://bit.ly/2aDcVnz) the changes for the Helena-based Student Assistance Foundation could impact the nonprofit's 95 employees and about 35,000 borrowers in its loan portfolio. President and CEO Jim Stipcich declined to elaborate on the changes but says none of the employees have received a layoff notice.

The foundation will be rebranded as Reach Higher Montana and transferred under the control of the Montana Higher Education Student Assistance Corp. It will focus on helping students plan and pay for college.

Stipcich attributes the departure of the foundation's five major clients to the federal government's 2010 takeover of the student loan financing industry.

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Information from: Independent Record, http://www.helenair.com