You can get a new student loan service.
Here’s what you need to know – and what it means for your student loans.
If you’ve been following the latest headlines on student loans, you know there are several major changes that have been made to your student loans. This year, three top student loan managers – Navient, FedLoan (PHEAA), and Granite State – each announced that they will no longer be your federal student loan manager next year. In total, approximately 16 million student loan borrowers – or 35% of all student loan borrowers – will have a new student loan service to manage their student loans, answer questions, and collect your student loan payments. Here is the last one:
Why Navient waived your student loans
Navient, which manages $ 300 billion in student loans for 12 million student loan borrowers, announced last week that Navient would stop handling federal student loans with the US Department of Education. (Here’s what that means for your student loans). The startling move, which came days before a major government shutdown was averted, could leave nearly six million student loan borrowers with a new student loan manager. Navient signed a definitive agreement to transfer its federal student loan service for student loan accounts owned by the US Department of Education to Maximus, another student loan service. Navient and Maximus have submitted a preliminary request for review to Federal Student Aid (FSA), but the US Department of Education must approve the transfer from Navient to Maximus. Why did Navient abandon the student loan service for federal student loans? (Here’s why Navient abandoned your student loans). Navient was likely to face increased regulatory oversight from the US Department of Education, Congress, state attorneys general, and the Consumer Financial Protection Bureau (CFPB).
Student loans: FedLoan Servicing exits student loan agreement
FedLoan Servicing, also known as the Pennsylvania Higher Education Assistance Agency (PHEAA), not renew his 12-year contract with the US Department of Education for the service of federal student loans. FedLoan Servicing provides student loans to approximately 8.5 million student borrowers, which represents approximately 20% of all federal student borrowers. The current FedLoan Servicing contract will expire on December 14, 2021. FedLoan Servicing is also the only student loan manager who manages federal student loans for the Public Service Loan Forgiveness program, which helps student loan borrowers who work for a qualified public service. or a non-profit employer. get a student loan cancellation. The civil service loan forgiveness program has come under increased scrutiny due to its 98% rejection rate. The good news is that major changes to student loan forgiveness could come this week.
Student Loans: Granite State to End Federal Student Loans Service
In July, Granite State Management & Resources, which is part of the New Hampshire Higher Education Association Foundation (NHHEAF) nonprofit network, also announced that it would end its federal service contract to focus on service. private loans. Granite State provides student loans to approximately 1.3 million student borrowers. In 2020, another student loan manager – CornerStone – decided to terminate its loan management contract (even though the contract was renewed until 2022) due to financial losses based on the terms of the contract with the US Department. education.
Student loan borrowers: what to do next
If you are affected by these major changes, here are the answers to the most frequently asked questions:
1. Are my student loans affected by these changes?
If your federal student loans are managed by Navient, FedLoan Servicing, Granite State, or CornerStone, you will get a new student loan service. If you have another student loan manager, that manager will continue to manage your student loans.
2. Will private loans be impacted?
These student loan agent change announcements only apply to federal student loans. There is no impact on private student loans.
3. What should I do when my student loan officer changes?
The US Department of Education will notify you in writing of your change in student loan officer. The education department will automatically assign you a new student loan manager. For example, for Navient student loan borrowers, that new student loan manager might be Maximus. Some FedLoan Servicing student loans have been awarded to MOHELA, another student loan manager. Expect more communications from the US Department of Education in the months to come. You don’t need to apply for a new student loan service.
4. What will change with my new student loan manager?
Think of your new student loan manager as a customer service for your student loans. You must make student loan payments to your former student loan manager until you are notified otherwise. If your student loans are on temporary forbearance due to Covid-19, remember that this student loan relief will end on January 31, 2022. With your new student loan manager, be sure to update your student loan information. automatic payment, your contact information and any other changes to your employment, income and family size if enrolled in an income-based repayment plan. (Here’s how to get a student loan discount).
5. Who is my student loan manager?
If you are unsure who your student loan manager is, log into your Federal Student Aid (FSA) account and view your student loan manager on the FSA account dashboard. You can also call Federal Student Aid at 1-800-4-FED-AID (1-800-433-3243).
6. How can I contact my student loan manager?
Here are contact details for some of the major student loan officers:
FedLoan Service (PHEAA): 1-800-699-2908; Granite State – GSMR: 1-888-556-0022; Great Lakes: 1-800-236-4300; HESC / Edfinancière: 1-855-337-6884; MOHELA: 1-888-866-4352; Navigation: 1-800-722-1300; Nelnet: 1-888-486-4722; OSLA Service: 1-866-264-9762; ECSI: 1-866-313-3797; and Default Resolution Group (also known as Maximus): 1-800-621-3115 (TTY: 1-877-825-9923 for the deaf or hard of hearing). You can ask your student loan officer anytime to review your student loan balance, ask questions, and manage your student loan repayment.
7. When do student loan payments start again?
Although these top student loan managers are ending their federal contracts, your student loan payments will resume as of February 1, 2022. The Biden administration has said this current student loan relief is the last extension, so don’t expect not for student loan relief to continue beyond that. Dated. It also means that the Department of Education will assign you a new student loan manager instead of extending the temporary student loan forbearance.
Getting a new student loan officer can be frustrating or a cause for celebration. It’s also a good time to review all of your options for your student loans. Here are some popular ways to save money with your student loans: