FedLoan Servicing: What student loan borrowers need to know

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FedLoan Servicing is a federal student loan servicer that has serviced loans nationwide since 2009. The company is operated by the Pennsylvania Higher Education Assistance Agency, or PHEAA.

It’s the only servicer that handles Public Service Loan Forgiveness applications. If you’re pursuing loan forgiveness, your loans will be automatically transferred to FedLoan. Here’s what to know about this loan servicer.

What is FedLoan Servicing and what does it do?

FedLoan Servicing is one of the companies that contract with the Department of Education to service federal student loans. A loan servicer is the company that manages your loan after the lender disburses the funds to you (or your school).

As a loan servicer, FedLoan collects 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 is the only servicer that manages Public Service Loan Forgiveness (PSLF) applications, processes employment certification forms and administers TEACH Grants.

Is FedLoan Servicing a good loan servicer?

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’re having trouble with FedLoan Servicing, you can file a complaint with the PHEAA Office of Consumer Advocacy. Call 800-213-9827, Monday through Friday 8 a.m. to 5 p.m. ET, or mail to:

Pennsylvania Higher Education Assistance Agency
The Office of Consumer Advocacy
1200 North 7th St.
Harrisburg, PA 17102

If the consumer advocacy office 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.

What types of student loans does FedLoan Servicing service?

FedLoan Servicing services federal student loans. Unlike some of the other loan servicers, it does not manage private student loans.

How do I know if FedLoan Servicing is my servicer?

If you’re not sure who services your student loans, there are a few ways to find out. First 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 not sure 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.

How do I make FedLoan Servicing student loan payments?

If FedLoan services your student loan, you have several options for making your monthly payments:

  • Send a check via mail: Borrowers can make a loan payment by writing a check or money order payable to FedLoan Servicing and mailing it to: Department of Education, FedLoan Servicing, P.O. Box 790234, St. Louis, MO 63179-0234. Include your account number on your check. FedLoan recommends dropping your check in the mail at least five to seven days before the due date to ensure that it’s processed on time.
  • Pay by phone: You can make a payment over the phone anytime by calling 800-699-2908. Have your 10-digit FedLoan Servicing account number handy.
  • Pay by mobile app: The FedLoan Student Loans App is available on iOS and Android devices. Once you download the app, you can create an account and make payments there.
  • Pay online: Once you create an online account, you can log in anytime and schedule a payment. The servicer can also store your bank account information securely, so you won’t have to find these details every time you need to make a payment.
  • Direct debit: Borrowers can also sign up for autopay, in which FedLoan debits the amount due on the due date each month. You’ll even qualify for a 0.25 percent discount on your interest rate.
  • Third-party bill-pay services: You may also choose to schedule payments through your bank or use a bill-pay service. However, you won’t qualify for any autopay discounts using this method.

Once you’re logged in to your account, FedLoan Servicing allows you to schedule loan payments up to 60 days in the future. You can schedule a maximum of eight advance payments per month. You can also make extra payments toward your principal balance, which can help you reduce the amount of interest you pay overall and save you money over the life of the loan.

The future of FedLoan Servicing

The Department of Education renewed FedLoan Servicing’s contract through December 2021. However, FedLoan is not included among the servicers the Department of Education will partner with in 2022 and beyond as part of its new Next Gen platform.

If FedLoan services your student loan, your loan may be transferred once FedLoan’s contract expires. Whatever the case, FedLoan will contact you about changes to your account and whether another company will service your loan.

How to contact FedLoan Servicing

You may contact FedLoan Servicing via:

  • Phone call: You can call FedLoan for loan servicing support and TEACH Grant support at 800-699-2908 Monday through Friday, 8 a.m. to 9 p.m. ET. International callers can reach the loan servicer at 717-720-1985, and hearing- and speech-impaired callers can reach the servicer by dialing 711 during the same hours.
  • Secure email: You can log in to your account (or create one) and email the servicer there.
  • Fax: Borrowers can fax FedLoan Servicing at 717-720-1628 to submit or verify documentation.
  • Mail: FedLoan Servicing has several addresses, depending on what you need. Check out its contact page for details.

The bottom line

If FedLoan Servicing services your student loans, there are several ways to manage your account and make payments every month. But in light of FedLoan’s legal issues, it’s a good idea to keep an eye on how your payments are tracked when it comes to loan forgiveness. You can report any problems to the Office of Consumer Advocacy, your state attorney general or your state consumer protection office. It’s also wise to keep an eye out for any communication from the servicer through the end of 2021, as it’s possible that your loans will be transferred once FedLoan’s contract expires.

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Written by
Kim Porter
Contributing writer
Kim Porter is a personal finance expert who loves talking budgets, credit cards and student loans. In addition to serving as a contributing writer for Bankrate, Porter also writes for publications such as U.S. News & World Report, Credit Karma and Reviewed.com. When she's not writing or reading, you can usually find her planning a trip or training for her next race.
Edited by
Student loans editor