You could also be getting a brand new student loan servicer.
Here’s what you should know — and what it means to your student loans.
If you’ve been following the newest headlines on student loans, then you definitely’ll know that there have been a number of main modifications to your student loans. This 12 months, three main student loan servicers — Navient, FedLoan (PHEAA) and Granite State — every introduced that they’ll now not be your federal student loan servicer subsequent 12 months. In combination, roughly 16 million student loan debtors — or 35% of all student loan debtors — shall be getting a brand new student loan servicer to handle their student loans, solutions questions and accumulate your student loan funds. Here is the newest:
Why Navient stop your student loans
Navient, which companies $300 billion of student loans for 12 million student loan debtors, introduced final week that Navient will exit federal student loan servicing with the U.S. Department of Education. (Here’s what this implies to your student loans). The shocking transfer, which got here days earlier than a significant authorities shutdown was averted, might go away almost six million student loan debtors with a brand new student loan servicer. Navient signed a definitive settlement to switch its federal student loan servicing for U.S. Department of Education-owned student loan accounts to Maximus, one other student loan servicer. Navient and Maximus have submitted a preliminary request for assessment to Federal Student Aid (FSA), however the U.S. Department of Education should approve the switch from Navient to Maximus. Why did Navient exit student loan servicing for federal student loans? (Here’s why Navient stop your student loans). Navient was more likely to face enhance regulatory oversight from the U.S. Department of Education, Congress, state attorneys normal and the Consumer Financial Protection Bureau (CFPB).
Student loans: FedLoan Servicing exits student loan contract
FedLoan Servicing, often known as the Pennsylvania Higher Education Assistance Agency (PHEAA), will not renew its 12-year-old contract with the U.S. Department of Education to service federal student loans. FedLoan Servicing companies student loans for roughly 8.5 million student loan debtors, which represents about 20% of all federal student loan debtors. FedLoan Servicing’s present contract will expire December 14, 2021. FedLoan Servicing can be the only student loan servicer that companies federal student loans for the Public Service Loan Forgiveness program, which helps student loan debtors who work for a professional public service or non-profit employer get student loan cancellation. The Public Service Loan Forgiveness program has been below elevated scrutiny resulting from its 98% rejection price. The excellent news is that main student loan forgiveness modifications could come this week.
Student loans: Granite State will finish federal student loan servicing
In July, Granite State Management & Resources, which is a part of the non-profit New Hampshire Higher Education Association Foundation (NHHEAF) Network, additionally introduced it should finish its federal servicing contract to deal with servicing non-public loans. Granite State companies student loans for roughly 1.3 million student loan debtors. In 2020, one other student loan servicer — CornerStone — determined to terminate its loan servicing contract (regardless that the contract was renewed to 2022) resulting from monetary losses primarily based on contract phrases with the U.S. Department of Education.
Student loan debtors: what it’s best to do subsequent
If you’re impacted by these main modifications, listed here are solutions to well-liked questions:
1. Are my student loans affected by these modifications?
If your federal student loans are serviced by Navient, FedLoan Servicing, Granite State or CornerStone, then you’ll get a brand new student loan servicer. If you’ve a distinct student loan servicer, then that student loan servicer will proceed to service your student loans.
2. Will non-public loans be impacted?
These bulletins to vary student loan servicers solely apply to federal student loans. There is not any influence to non-public student loans.
3. What do I have to do when my student loan servicer modifications?
The U.S. Department of Education will notify you in writing about your change in student loan servicer. The Education Department will mechanically assign you a brand new student loan servicer. For instance, for Navient student loan debtors, that new student loan servicer could also be Maximus. Some FedLoan Servicing student loans have been assigned to MOHELA, one other student loan servicer. Expect additional communication from the U.S. Department of Education within the coming months. You don’t want to use for a brand new student loan servicer.
4. What will change with my new student loan servicer?
Think of your new student loan servicer as customer support to your student loans. You ought to make student loan funds to your previous student loan servicer till you might be notified in any other case. If your student loans are in short-term forbearance resulting from Covid-19, keep in mind that this student loan reduction will finish January 31, 2022. With your new student loan servicer, ensure that to replace your autopay info, contact info and another modifications to your employment, earnings and household dimension if enrolled in an income-driven reimbursement plan. (Here’s the best way to get student loan forgiveness).
5. Who is my student loan servicer?
If you’re uncertain who your student loan servicer is, log into your Federal Student Aid (FSA) account and think about your student loan servicer on the FSA Account Dashboard. Alternatively, you possibly can name Federal Student Aid at 1-800-4-FED-AID (1-800-433-3243).
6. How do I contact my student loan servicer?
Here is the contact info for some main student loan servicers:
FedLoan Servicing (PHEAA): 1-800-699-2908; Granite State – GSMR: 1-888-556-0022; Great Lakes: 1-800-236-4300; HESC/Edfinancial: 1-855-337-6884; MOHELA: 1-888-866-4352; Navient: 1-800-722-1300; Nelnet: 1-888-486-4722; OSLA Servicing: 1-866-264-9762; ECSI: 1-866-313-3797; and Default Resolution Group (often known as Maximus): 1-800-621-3115 (TTY: 1-877-825-9923 for the deaf or exhausting of listening to). You can examine in together with your student loan servicer any time to assessment your student loan stability, ask questions and handle student loan reimbursement.
Getting a brand new student loan servicer could also be a supply of frustration or it might be a purpose to have a good time. It’s additionally an excellent time to assessment all of your choices to your student loans. Here are some well-liked methods to economize together with your student loans: