**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.
Your student loans will transfer to a new servicer.
First, you’ll want to understand the basics. Here are three things to look for when you’re expecting a transfer:
- Communication from the Department of Education. The Department of Education will notify you when it transfers your federally-owned loans from one servicer to another. You’ll get an email or letter giving you notice of the transfer and providing your new servicer’s name and contact information.
- Communication from your new federal loan servicer. Your new servicer will also reach out to you once your loans are fully loaded to its system. The communication you get after this transfer explains that your federal loans have been transferred and that this new servicer will help you with your account going forward.
- The National Student Loan Data System (NSLDS) will reflect your new servicer. The NSLDS serves as a record of your student loan history and will reflect your new servicer. The new servicer reports your loan information to NSLDS after your transferred loans have been fully loaded to their system. You can view the federal loan servicer code and name associated with each federal student loan when you log in at StudentAid.gov.
Download important payment history and documentation.
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:
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- All past account transactions & payment history
- Communications related to income-driven repayment plans
- Any special communications and documentation related to loan rehabilitation, payment issues, account discrepancies, or any other communications you want to have a record of
Be sure to save all of your downloaded documents somewhere accessible so you can find them easily in the future if you need them.
FedLoan handles Public Service Loan Forgiveness (PSLF).
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:
- Submit your PSLF form ASAP
- Next, download ALL documentation from your FedLoan account and pay special attention to the following items:
- PSLF Qualifying Payment Count
- Employment Certification for PSLF
- All past account transactions & payment history
- Communications related to income-driven repayment plans
- Any special communications and documentation
- Complete & submit your PSLF form today to get an official count of your progress toward forgiveness!
- Complete sections 1 & 2 of the PSLF form https://studentaid.gov/sites/default/files/public-service-application-for-forgiveness.pdf
- Have your employer complete sections 3 & 4 of the form.
- Send the completed form to FedLoan Servicing via the contact information listed in section 7 of the form.
- Lastly, if you haven’t renewed your income-driven repayment plan during the administrative forbearance period (March 13th, 2020- Sept 30th, 2021) make sure you do that.
- Provide updated income information and easily select your repayment plan online https://studentaid.gov/app/ibrInstructions.action
Save all of your downloaded documents somewhere you can find them easily if you need them.
Additional Resources
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
Is PSLF Right for Me?