Preparing for Federal Student Loan Payments to Resume
*This post has been updated to reflect the temporary relief extension until 6/30/2023.
2 min read
Jeni Burckart : August 4, 2021
**FedLoan Servicing has extended their servicing contract through December 2022.
You may have seen the news that three federal student loan servicers aren’t going to keep servicing federal student loans. Federal student loan servicers administer federal repayment programs and more on behalf of the Department of Education. Combined, these three companies cover roughly 10 million student loan borrowers. Their current contracts expire in December 2021. The specifics of how the transition will happen aren’t clear. But there are actions you can take to be prepared.
First, you’ll want to understand the basics. Here are three things to look for when you’re expecting a transfer:
When your servicer’s contract ends, it is possible that you will no longer be able to log in to your account and access previous payment history or other important documentation. So you’ll want to download ALL documentation from your FedLoan/AES/Granite State account and pay special attention to the following items:
Be sure to save all of your downloaded documents somewhere accessible so you can find them easily in the future if you need them.
If you’re pursuing PSLF, you have a few extra steps to take. FedLoan is the servicer responsible for administering PSLF. That means if you’re on track for PSLF there are some extra steps to take to protect yourself.
Here are the most important steps to take to avoid PSLF hiccups:
Save all of your downloaded documents somewhere you can find them easily if you need them.
Public Service Loan Forgiveness Resources
Coach Q&A: Public Service Loan Forgiveness Pitfalls
Coach Q&A: How can I track my progress toward Public Service Loan Forgiveness
*This post has been updated to reflect the temporary relief extension until 6/30/2023.
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