The phrase "single servicer" refers to a situation where a single company or organization is responsible for providing a specific service, instead of multiple companies or individuals. Full definition
The Department of Education says it is trying to place borrowers with multiple Direct loans with a single servicer. (badcredit.org)
Instead of the nine servicers that currently receive student loans, the decision would give all federal student loans to a single servicer, in effect creating a $ 1 trillion monopoly over the federal student loan industry. (studentdebtwarriors.com)
If a single servicer were to receive all new federal student loan contracts moving forward, then that means that there's no incentive for them to provide decent customer service to borrowers (because you have nowhere to turn, unless you want to refinance your federal student loans in the private loan marketplace). (studentdebtwarriors.com)