FedLoan Servicing Review: FedLoan Servicing is a student loan service company contracted by the Education Department to administer the student loans. What this means is that they take care of all the loans ‘ service and customer service items-such as processing payments, sending statements, handling issues and concerns, and more.
What Is FedLoan Servicing?
FedLoan is one of the largest student loan servicing companies, and they handle ALL Public Service Loan Forgiveness applications.
It’s important to note, when dealing with them, you are most likely speaking to a low-wage call center worker that has no vested interest in your well being or your financial security. As such, you need to educate yourself on your student loans, know your options, and push the conversation in the direction you know is correct.
If FedLoan is your student loan servicer, here’s what it can help you do.
Register for online access to your account. Once you have access you can contact FedLoan, access your monthly billing statements and pay bills.
Enroll in autopay. FedLoan can deduct your payments automatically from your bank account. Signing up for autopay will reduce your interest by 0.25%.
Sign up for income-driven repayment. You can request income-driven repayment, which limits your student loan payments to a percentage of your income, by completing a paper form with FedLoan. (You can apply online on studentaid.gov and then recertify your income each year online as well.)
Process deferment and forbearance requests. FedLoan can help you temporarily stop making payments or reduce your payment amount if you qualify. This helps you stay in good standing to avoid default. But during any periods of deferment or forbearance, interest can continue to build.
Process monthly payments and extra payments. FedLoan will track and collect your payments. If you want to make additional payments, you can instruct FedLoan(online, by phone or by mail) to apply extra payments to your current balance. Otherwise, it may apply the additional amount to next month’s payment instead.
Process applications for Public Service Loan Forgiveness. FedLoan is the only federal loan servicer that handles Public Service Loan Forgiveness applications, including processing employment certification forms. You can submit your forms annually and apply for forgiveness once you’ve made 120 qualifying payments while working for an eligible employer.
Your loan servicer is assigned by the U.S. Department of Education when your loan is disbursed to your college for the first time. The name of the company sending you a federal loan bill every month is your servicer. If your loan payments haven’t begun or you’re not sure which company is your servicer, log in to My Federal Student Aid to find out. You can also get in touch with any of the loan servicer contact centers by calling 1-800-4-FED-AID.
Servicers are there to help you, but they may offer choices that are best for the company, not the borrower. That means they can’t change how payments are processed and may not suggest the most beneficial repayment option for you. It’s most important to know your repayment options so you can know the right questions to ask.
Is FedLoan Servicing legitimate or a scam?
FedLoan Servicing is one of a limited number of organizations approved by the U.S. Department of Education to service these loans and says it’s dedicated to supporting borrowers with easy and convenient ways to manage their repayments.
Am I stuck with FedLoan until my loans are paid off?
Loans are sometimes transferred from one servicer to another by the Department of Education. You’ll be notified if this happens, and you’ll manage payments with the new servicer. With the exception of Public Service Loan Forgiveness, all servicers deliver the same options and programs, but customer service may differ from one to another.
Otherwise, you are likely to remain with FedLoan unless you act to switch servicers. Use this tool to find out what might work for you.
FedLoan Servicing services two main types of federal loan programs: FFELP and the William D. Ford Federal Direct Loan Program loans.
FedLoan Servicing services FFELP loans that were sold and transferred as a result of legislation known as the Enduring Continued Access to Student Loans Act (ECASLA), under which the U.S. Department of Education offered to purchase FFELP loans from third-party lenders.
FedLoan also services direct loans provided directly through the U.S. Department of Education and don’t involve third-party lenders.
If you’re having difficulty with FedLoan that you have been unable to resolve, start by filing a complaint directly with the Pennsylvania Higher Education Assistance Agency’s Office of Consumer Advocacy. It’s FedLoan’s highest customer service office. Call 1-800-213-9827 or send mail to:
Pennsylvania Higher Education Assistance Agency
The Office of Consumer Advocacy
1200 North 7th Street
Harrisburg, PA 17102
If you have credit disputes, you can mail:
FedLoan Servicing Credit
P.O. Box 60610
Harrisburg, PA 17106-0610
If your issue goes unresolved, you can also make complaints about FedLoan to:
Your state attorney general’s office.
Your state consumer protection office.
Federal Student Aid Feedback System.
Your congressional representative.
Make sure to keep records of conversations you have, including the day, time and customer service representative you spoke with. Keep copies of any letters, bills or emails about your account.
If a complaint doesn’t help, you can contact the Federal Student Aid Ombudsman Group. This method should be used only as a last resort, says the federal student aid office. Complete all information on the Ombudsman Information Checklist before contacting. When you’re ready to reach out, here’s how to get in touch:
By mail: U.S. Department of Education
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
You can also reach out to a student loan nonprofit such as The Institute of Student Loan Advisors, which provides free dispute resolution.
FAQs About FedLoan Srervicing
Is Fedloan Legit?
FedLoan is part of the Pennsylvania Higher Education Assistance Agency (PHEAA). It is a legit servicing company.
What if I Missed payments?
When you miss on a payment you fall under delinquency and if you miss a number of payments then you default on your loans. This has an adverse effect on your credit rating.
FedLoan will report the status of your loans to the consumer reporting agencies on a monthly basis.
Will I Be Reported To The Credit Bureau If I Miss A Payment?
Yes, you will. It is advised not to miss a payment. If you have any difficulty making payment contact your service provider and opt for refinancing or choose a repayment option that suits your needs.
Does Fedloan Offer Consolidation Services?
Yes. It should be noted that consolidation is not for everyone, but only for federal loans. It is highly recommended to go through all the facts before going ahead with consolidation.
Can I Change My Loan Payment Due Date?
Yes, as long as your account is not past due. You do need to make your first payment as scheduled before requesting a new due date.
What to do if FedLoan is your servicer : Conclusion
As a group, federal loan servicers don’t have stellar reputations—and FedLoan is no different. Unfortunately, you don’t have any control over who your servicer is if you have federal loans with the U.S. Department of Education. But that doesn’t mean you’re out of luck. Refinancing your student loans is one option for maintaining a bit more autonomy over your loans.
You decide who your loan servicer is because you choose a lender, and then they service your loans. Do some comparison shopping to see which lenders provide the best terms and the best customer service. Then take control of your debt.
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