What Is The Best Student Loan Servicer

Can My Student Loan Servicer Change

Yes, your loan servicer can change over time for the following reasons:;

• Your loan servicers contract ended:;If your loan servicers federal loan contract ends, your loans will be transferred to a new servicer.;
• Your loans were sold:;Occasionally, the loan servicer may sell your loans to another company.;
• You consolidated your loans:;If you consolidate your loans with a Direct Consolidation Loan, your debt may be transferred to a new loan servicer.;
• Youre applying for PSLF:;When you notify your loan servicer that you intend to pursue PSLF, the servicer will transfer your loans to the servicer handling PSLF. As of 2021, the PSLF servicer is FedLoanServicing. However, FedLoan Servicings contract ends on December 31, 2021. The loan servicer that will handle PSLF applications going forward has not yet been announced.;

Servicer Of Your Federal Student Loans

Your federal student loans may or may not all be with Nelnet or another servicer. It’s important that you know which servicer provides customer service for each of your student loansand it’s simple to verify. You can access all of your federal student loan data at StudentAid.gov by logging in with your FSA ID. To create or update an FSA ID, visit FSAID.ed.gov.

Which Federal Student Loan Servicer Is The Best

For a number of reasons, it is difficult to say who the best federal student loan servicer is. As mentioned above, you generally cannot request a new student loan servicer.

Borrowers arent able to compare the different loan servicers, but;lets take a look at how many complaints each servicer has.

Note: Federal Student Aid does not issue data for each not-for-profit student loan servicer. We only have the totals for all not-for-profit servicers, which is what you see above.

Not-for-profits tend to have fewer complaints than for-profit student loan servicers in the CFPBs Complaint Database. The servicer with the fewest complaints listed is OSLA, with only 45 complaints.

Navient has by far the most complaints, with over 30,000. This is despite the fact that they have the smallest portfolio of the for-profit federal student loan servicers.

Out of the not-for-profits, MOHELA has by far the most complaints, with 546.

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Best Student Loan Servicers Explained

Learn the difference between the lender and loan servicer and check out 9 best federal student loan servicers. Also learn their features and ways to contact them.

If you are applying for a Federal Student Loan, then you must have come across a familiar term called the student loan servicer. You might be unclear about who these companies are, what their role is when it comes to your student loans,;and why they are important.

• How does the loan servicer work for Private loans?

Your Guide To Student Loan Servicers

Student loan servicers collect payments, provide customer service, and otherwise manage the administration of student debt. You’re assigned a private loan servicer for federal student loans and can’t change your servicer without refinancing or consolidating your loans.

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Some lenders, including the federal government, offer student loans but dont administer them themselves. Instead, student loan servicers handle the day-to-day tasks associated with the loan, including collecting payments and providing information and support to borrowers.;

When you borrow federal student loans, youre assigned a loan servicer that has contracted with the U.S. Department of Education. For private student loans, lenders usually service their own loans, but may contract with a servicer, which will reach out to you when repayment begins.

To change servicers, you need to refinance or consolidate your loans. In this guide, well explain what loan servicers do, how to stay in touch with your loan servicer, and how to change servicers if youre unhappy.

In this guide:

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Can You Change Your Student Loan Servicer

You cannot request a change in loan servicer when, for example, youre unsatisfied with its level of customer service. But when you opt to make particular changes to your loans, youll be assigned a new servicer.

For example, when you pursue Public Service Loan Forgiveness;a federal program that provides certain government and nonprofit employees loan forgiveness after 120 paymentsyour loans may be transferred to FedLoan Servicing, which manages the program on behalf of the government.;That means FedLoan Servicing will be the company that collects payments and certifies that your work qualifies for the program before you get forgiveness.

Additionally, when you consolidate multiple federal student loans into one, you can choose the new servicer youd like to work with on your application.;Youll then make a single payment to that company each month according to the new repayment plan you choose.

Finally, refinancing student loans through a new private lender lets you work with a different lender and servicer. A lender will pay off your previous loans and issue you a new loan, ideally at a lower interest rate, and on a new repayment schedule.

Refinancing With A Private Lender

When you refinance with a private lender, they will buy out your remaining student loan balance and issue a new student loan on their own terms. However, you should proceed with caution when going this route, primarily because you may give up some valuable borrower protections.

Indeed, despite the issues with federal student loan servicers, the loans themselves come with protections that private lenders may not offer.

For example, while some private student loan lenders will cancel your student debt in the unfortunate event of your death, not all of them will! With federal student loans, your student debt will automatically be canceled if that ever does happen.

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Sallie Mae Best Loan For Students

Sallie Mae offers both undergrad and graduate student loans with fixed and variable interest rates. Sallie Mae even offers loans for K-12 if you want to send your kids to a private school.

Sallie Mae can offer pretty much any variation of private student loan that exists. Loans are available to students and parents, and there are no origination fees or pre-payment penalties. For undergraduate loans, variable rates range from 2.75% to 10.65% and fixed-rate loans range from 4.74% to 11.85% APR. Once you make 12 on-time payments, you can apply for a co-signer release and carry the loans on your own.

How To Find Your Federal Student Loan Servicer

If your loan payments havent begun or youre not sure who your servicer is, log in to My Federal Student Aid to find out. You’ll need to create an;FSA ID;to sign in. Then you can see your servicer, view loan details, apply for a direct consolidation loan or sign up for an income-driven repayment plan.

Knowing your student loan servicers name and feeling comfortable contacting the company is the first step toward getting ahead of your loans. You can get in touch with all of the loan servicer contact centers by calling;1-800-4-FED-AID.

All servicers offer similar help and services. But if you’re having trouble with yours, you might want to make a change. There are only a few ways this can happen. Choose a goal below to determine your best option

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Understand Your Options For Repayment

Part of your process should also include researching and understanding your student loan repayment options.

With federal loans, you have access to the standard 10-year plan, income-driven plans, extended repayment, and others. This flexibility can be really helpful if your income is limited and you need to lower monthly payments.

Liz Stapleton, who runs the finance blog Less Debt More Wine, has this student loan debt advice: The repayment plan you choose now does not have to be the repayment plan for the entire life of the loan. As your financial situation changes, so can your repayment plan, and it can be changed up to once a year.

Private student loans dont usually have as many options, but some lenders do offer deferment or forbearance if you run into financial hardship or go back to school. If youre looking to adjust monthly payments, speak with your lender about what you can do.

Consider Refinancing Your Student Loans At Lower Rates

Once you have a decent credit score and income or can apply with a cosigner who does you might qualify for student loan refinancing. Through refinancing, you can restructure your debt, adjust your terms and maybe score a lower interest rate as well.

But the benefits of refinancing arent for everyone, especially if youre relying on federal protections.

Once you refinance federal loans, you permanently lose access to the various federal aid programs, such as income-driven repayment plans and Public Service Loan Forgiveness, warned Stephen Caplan, Certified Student Loan Professional and financial advisor at Neponset Valley Financial Partners.

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The Best Federal Student Loan Servicers Ranked

Although there’s not much you can do to control your servicer, some are much worse than others.

Americans hold an astonishing;$1.56 trillion;in student loan debt. This money is spread across 45 million borrowers who hold an average loan;amount of nearly $30,000.

Who handles all these loans? The federal government?;

Nope. The government hands this job over to federal;student loan servicers. This is the company you make your student loan payments to. Lets find out more about them here.

What Do I Do If Im Unhappy With My Loan Servicer

If youre unhappy with your federal loan servicer, follow these steps:;

• Contact the loan servicer :;If you arent getting the help you need through the general customer service line, submit an email or secure message requesting a review from the claims department or ombudsman. While you can request to speak to the higher levels via phone, its always a good idea to have written records, so email or secure message is usually best.;
• Submit a complaint through the Federal Student Aid Feedback System:;You can submit a complaint to the federal government through the;Federal Student Aid Feedback System. Typically, youll get a response within 15 days.;
• Contact the student loan ombudsman:;The federal student loan ombudsman program is designed to handle difficult programs when youre unable to get resolution through the servicer. You can contact the ombudsman by calling 877-557-2575 or by;submitting your issue online.;

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Nelnet Your Student Loan Servicer

Nelnet works with the Department of Education to help you achieve your educational goals. We provide customer service on your federal student loans, so we answer your questions, offer solutions if you’re having trouble paying, and process your payments.

You’ll typically go through three stages during your loan’s life cyclein school, in grace, and in repaymentand will receive a variety of communication from us depending on the stage your loan is currently in.

We want you to have the best borrower experience possible. Let us know how we can help you.

What If Im Having Problems With My Federal Loan Servicer

Some loan servicers have come under fire and in the case of Navient, the nations largest servicer, faced high-profile lawsuits for allegedly improperly advising borrowers and mishandling their accounts.

You should understand your rights as a borrower, and educate yourself about your options to pay down your debt in the most manageable and cost-effective way possible. Dont just rely on your servicer to do that for you.

If you have questions or you think something just doesnt seem right, you have three main parties who can help.

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What Is The Maximum Amount Of Private Student Loans You Can Borrow

The maximum amount you can borrow in private student loans depends on the lender. While some lenders have specific limits, others will allow you to borrow up to your cost of attendance .

Additionally, private student loans sometimes have different maximums depending on where you live and whether youre applying with a cosigner.

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Student Loan Borrowers Will See Their Loan Servicers Change

In June of this year, the United States Department of Education announced sweeping changes to the way federal student loans will be serviced in the future. Specifically, five different companies will begin handling student loan processing and customer support once this change takes place.;

Those companies include Edfinancial Services LLC, F.H. Cann & Associates LLC, MAXIMUS Federal Services Inc., Missouri Higher Education Loan Authority , and Texas Guaranteed Student Loan Corporation . These loan servicers will eventually begin supporting federal student loan customers through direct engagement via contact centers writes the U.S. Department of Education, adding that they will also provide back-office processing support for students, parents, borrowers and partners at more than 5,800 postsecondary institutions.

These new contracts are part of an initiative to simplify federal financial aid processing and customer service through Next Generation Financial Services Environment, which is also called Next Gen.

The point of this change is making student loan repayment less complicated and more standardized. The U.S. Department of Education says that the current environment involves nine different loan servicers operating on four different platforms.;

What Does This Change Mean For Student Loan Borrowers?

When Will New Loan Servicers Take Over?

This is especially important if they are eligible for any loan assistance or relief programs, he says.

The Bottom Line

How Do I Find My Student Loans

The process for finding your loan servicer will be different depending on whether you have federal or private student loans.

If you have federal student loans, you can find your loan servicer by signing into your Federal Student Aid account. Youll log in with your FSA ID. Once youve accessed your dashboard, youll see your student loan servicer and other details about your loans.

Alternatively, you can find your federal student loan servicer by calling 1-800-4-FED-AID .

Along with identifying your loan servicer, you will also find other information on your student loans, including the type of student loans you have, the loan amounts, interest accrued and outstanding balances.

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Attending School Less Than Half Time You Can Still Apply For A Student Loan

Whether youre a full time, half-time, or less than half-time student, you can use school loans to pay for all your school-certified expenses at degree-granting institution.Taking winter or summer classes? Studying abroad? Taking continuing education or professional certification courses? We have student loans that can help you pay for classes taken online, on campus, or anywhere.

Can You Get A Student Loan Without A Cosigner

Yes, most federal student loans are available to borrowers without the need for a cosigner.

As for private student loans, you might get approved without a cosigner if you have decent credit and income. However, applying with a cosigner could help you get approved more easily, especially if you have poor or fair credit. You might even get a better interest rate by having a creditworthy cosigner.

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Who Is My Student Loan Servicer

Your student loan servicer is the company that manages your student loans. Essentially, its a third party that acts as a middleman between you and your lender. When you make a payment toward your student loan, it is managed by your loan servicer.

Student loan servicers work with borrowers to help manage their student loan repayment. If borrowers would like to change their repayment plan or apply for deferment or forbearance, they should discuss their options with their loan servicer first.

Borrowers do not choose their loan servicer, but rather, are assigned one. If you have federal student loans, your loan servicer is assigned by the Department of Education.

Below are nine loan servicers that currently manage federal loans, plus an additional loan servicer that deals with default resolution though be aware that this list may soon change.

Originally, the Department of Education had planned to change its roster of servicers in 2020, but while some new contracts have been announced, the only change as of December 2020 has been the departure of former servicer CornerStone.

If you have federal student loans, your answer to, Who is my student loan servicer? will be one of the companies on the list above. Note also that your loan servicer can change during the life of your loan, so make sure to check your student loan accounts for the most current information.

What Are Loan Servicers

A loan servicer is a company that manages your student loans. As a middleman between you and the lender, the loan servicer sends out your monthly bills, collects payments, reports payments to the credit bureaus and generally helps you resolve loan issues along the way. For instance, if you want to change your payment plan or apply for a hardship program, youll need to discuss it with your loan servicer first.

Borrowers dont choose their loan servicer they are assigned one. If you have federal student loans, then the Department of Education assigns your loan servicer for you.

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