FedLoan Servicing: What student loan borrowers need to know
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FedLoan Servicing was a federal student loan servicer that serviced loans nationwide starting in 2009, although its contract with the Department of Education ended in 2022. As a result, FedLoan no longer services any loans.
What happened to FedLoan?
As of December 14, 2022, all borrowers who originally had federal loans serviced by FedLoan had their loans transferred to MOHELA, Edfinancial, Aidvantage or Nelnet. Your new servicer should have confirmed the account transfer. FedLoan is no longer in operation.
You should have received contact from your new loan servicer. If not, you can find information about your current servicer. Log in to the National Student Loan Data System (NSLDS) and check your account dashboard. Here you’ll find information about your federal student loans, including the name of your student loan servicer.
If you’re still unsure who services your loans, call the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243). You can also check your credit reports to see who’s listed as the loan holder.
Public Service Loan Forgiveness program and TEACH Grants
FedLoan Servicing was the only loan servicer under the Public Service Loan Forgiveness program and grants received under the Teacher Education Assistance for College and Higher Education (TEACH) Grant program.
The Department of Education announced that MOHELA would be the new servicer for participants in those programs. If you previously used autopay with FedLoan, the information will automatically transfer. You won’t have to re-enroll in autopay.
What was FedLoan Servicing and what did it do?
FedLoan Servicing was one of the companies that contracted with the Department of Education to service federal student loans. A loan servicer is a company that manages your loan after the lender disburses the funds to you (or your school).
As a loan servicer, FedLoan collected student loan payments, tracks borrowers’ payoff status, helps borrowers enroll in repayment programs and generally fields questions and complaints. It also tracks your progress toward loan forgiveness. FedLoan was the only servicer that managed Public Service Loan Forgiveness (PSLF) applications, employment certification forms and administered TEACH Grants.
What should you do if you had problems with FedLoan?
FedLoan Servicing has been at the center of several controversies over the last few years. Notably, its mismanagement of PSLF loan accounts has led to 99 percent of all applicants being rejected. The company has allegedly provided inconsistent information to borrowers and hasn’t informed them about their right to appeal mistakes. The company also has a history of converting TEACH Grants to loans (with interest) for minor clerical errors and paperwork delays.
If you had unresolved complaints with FedLoan before your loan was transferred or something has gone wrong in the process, contact the customer service of your current loan servicer.
If customer service can’t resolve your issue, you can contact your state attorney general’s office or state consumer protection office. Take notes on any phone calls you have about your student loans and keep copies of letters, bills or emails about your account.
The Department of Education also created a PSLF Help Tool to make sure that borrowers are getting the correct information. With the tool, you can search for qualifying employers, learn what you need to do to become eligible for loan forgiveness and find the correct forms you need.
How do I make my student loan payments if my loan has been transferred?
You will not make future payments to FedLoan. Instead, look into your new loan servicer for the details about how to make payments.
If FedLoan Servicing serviced your student loan, the loan has been transferred to another loan servicer. If you need help determining who your new servicer is, check National Student Loan Data System or the Federal Student Aid Information Center for assistance.