Are federal student loan servicers changing?

You may have heard that changes are coming to student loan servicing, and that’s true. But there’s no need to panic. Your loan servicer will not be changing this year. … The things we’re doing are addressing your pain points with the federal student aid programs.

Why does my student loan servicer keep changing?

Department Of Education Actions

Sometimes loan servicers can change for reasons outside of the borrowers control. The Department of Education may simply decide not to renew your servicer’s contract. And when the current contract expires, your account will need to be moved to a new company.

Is FedLoan servicing going away?

FedLoan Servicing Will Be Gone, But The Public Service Loan Forgiveness Program Will Still Be There. The fact that FedLoan Servicing is getting out of the student loan servicing business does not have any impact on the existence of the Public Service Loan Forgiveness (PSLF) program.

Is nelnet still a federal loan servicer?

The Loan Servicer—Customer Service for Your Child’s Student Loans. Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.

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Is nelnet being replaced?

Nelnet and its subsidiary Great Lakes, part of the current list, have announced that their contract will not be in effect for the long term. But as things stand, there should not yet be any noticeable changes for students.

Who will take over FedLoan servicing?

PHEAA, which operates as FedLoan Servicing, currently manages loans for 8.5 million borrowers and services the Public Service Loan Forgiveness and Teacher Education Assistance for College and Higher Education Grant programs.

Can I change student loan servicers?

You can change student loan servicers only when you consolidate your loans or apply for Public Student Loan Forgiveness. … You can also get in touch with all of the loan servicer contact centers by calling 1-800-4-FED-AID. The U.S. Department of Education assigns your servicer when your loan is first disbursed.

What is happening with FedLoan servicing?

Last month, two of the Department’s major contracted student loan servicers — FedLoan Servicing (a branch of the Pennsylvania Higher Education Assistance Agency, or PHEAA), and Granite State Management & Resources — told the Department that they will not be renewing their contracts at the end of the year, effectively …

Does FedLoan do loan forgiveness?

In addition to collecting monthly student loan payments, processing deferment and forbearance requests, FedLoan administers three student loan forgiveness programs: Public Service Loan Forgiveness. Income-Driven Repayment Plan Forgiveness.

Is FedLoan federal or private?

FedLoan Servicing is a student loan servicer for federal and private student loans operated by the Pennsylvania Higher Education Assistance Agency (PHEAA), a nonprofit providing financial aid services and administering several state grant programs.

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Are all Nelnet loans Federal?

Terms, conditions, and interest rates are all set by the federal government. Prior to June 2010, loans were funded through the Federal Family Education Loan Program, or FFELP.

Is Great Lakes still servicing student loans?

Due to the government’s new Next Gen Business Process Operations initiative, Great Lakes and its parent company Nelnet will no longer service federal student loans after December 2020. If Great Lakes is your current loan servicer, The Department of Education will assign you a new loan servicer.