New year, new student loan servicer?
You may have heard the student loan servicer FedLoan ended their contract with the government Dec. 2022. If you haven’t…surprise! Happy new year! But don’t worry, this change should (hopefully) be a painless one for FedLoan’s 8.5 million student loan borrowers.
We’ll explain what this means for FedLoan borrowers, and what to expect next.
What does this mean for student loan borrowers?
If you don’t have any federal student loans with FedLoan, this won’t affect you!
If you do, your loans are being transferred to another student loan servicer. Most likely, this new servicer is MOHELA, but it could also be EdFinancial, Aidvantage (formerly Navient) or Nelnet. This transfer will happen automatically.
If you haven’t already, you’ll receive a notice from the Department of Education letting you know who your new servicer is.
Don’t worry: There won’t be any change to your loan status, balance, or rates, and you still won’t be required to make payments until the forbearance period is over.
Please back up. What’s a student loan servicer?
Your student loan servicer is the company collecting the payment on your student loan. It’s even possible you have more than one depending on how many loans you have.
If you don’t know who your student loan servicers are, don’t worry- most people have no idea. It’s a good idea to check because almost half of all borrowers have had their servicers change since March 2020.
How do I find out who my student loan servicer(s) is?
If you don’t know who holds your loans, you can find out by logging into the FSA site.
If you don’t have a login to FSA you can create one.
If your servicer was FedLoan, it’s also likely you have received a notice from the Department of Education alerting you about your new servicer.
FedLoan was my student loan servicer. What now?
Quite simply, your loans are now with another servicer. It’s a good idea to log-in to your new servicer and check to make sure everything is transferred over correctly. If not, you’ll need to contact both FedLoan and the new servicer to correct any issues.
When federal student loan payments start up again, this new servicer is where you’ll go to pay bills and see information about your account. Make sure to save your credentials. And in the meantime you can prepare for resumption of payments by taking some money-saving steps in the meantime.