Nearly 6 million student loan borrower accounts currently handled by Navient will need to be transferred to a new loan servicer in the coming months. Navient is just the latest major national student loan servicer to decide not to renew its contract with the U. Department of Education. FedLoan handles another 8. Two smaller loan servicers — Granite State Management and Resources earlier this year, and Cornerstone last year — announced departures, too.
According to the Consumer Financial Protection Bureau, student loan servicing changes can be disruptive for borrowers, and can sometimes lead to problems. Navient and PHEAA service many different types of student loans , and it is important to understand that only certain student loans will be impacted by the servicing changes.
Specifically, the servicing changes only impact federal student loans held by the U. This includes the following:. Navient services many private student loans , as well as FFEL loans that are not owned by the government. Not only is the FSA ID a useful tool to view your loan details, you can use it to apply for a direct consolidation loan or an income-driven repayment plan directly through the government.
Once you have gone through these steps, you will then have to sign up directly with your federal loan servicer to make payments. You can also pay your bill by check, mailing your payment directly to your loan servicer. There are several benefits to signing up for automatic payments from your bank account- you will never miss a payment, so long as there are sufficient funds in your account, but aside from that, there are monetary benefits to automatic payments.
You may be eligible for a small interest rate reduction if you decide to pay via direct debit. Once you are registered, you can connect your bank information and make payments directly from your bank account. Typically, you can get a 0. If your student loans are in defaults and in collections, you need to contact the student loan debt collector servicing your loans.
Furthermore, you need to take steps to get your student loans out of default through a process called student loan rehabilitation. If you have private student loans, the process may not be as straightforward, and it may take a bit more work to locate your student loan servicer.
The best way to find your private student loan servicer is to pull up your credit report. You can check your credit report for free at annualcreditreport. You can also use a free tool like Credit Karma to monitor your credit and get help.
Once you see your credit report, you can see all your lenders listed. Grow Your Legal Practice. Meet the Editors. Here's how to find the holder or servicer for your loans. What Is a Student Loan Holder? What Is a Student Loan Servicer? Here are some other ways to find out the servicer or holder of your federal student loans: If you have Direct Loans or FFELs that the Department of Education owns, go to the National Student Loan Data System to find out your loan servicer's information.
If you have privately-owned FFELs, contact the lender to get details about your account. If you have Federal Perkins Loans, contact the school where you got the loan to get information. Your school might be the servicer for the loan.
Federal Student Aid Ombudsman office If you've tried all of these places and are still in need of help, consider contacting the Federal Student Aid Ombudsman office. Talk to a Lawyer If you need help dealing with your servicer or need information about available student loan repayment and forgiveness options, consider consulting with a student loan attorney or debt settlement attorney who deals with student loans.
Talk to a Lawyer Need a lawyer? Start here. Practice Area Please select Some 44 million Americans are in debt from their education. With those three companies exiting, around 16 million federal student loan borrowers will be assigned a new servicer, according to higher education expert Mark Kantrowitz. More from Personal Finance: What the debt limit standoff means for you Here's how to have a happy retirement These year-end tax moves may help you save.
As soon as possible, log into your current loan servicer's website and save or print a copy of your loan information, Kantrowitz said. Having this record can make sure your loan information is accurate after it's transferred to a new servicer.
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