There are 43 million federal student loan borrowers. The U.S. Department of Education can’t possibly manage them all. Instead, they hire companies to work with borrowers on its behalf. These companies are known as federal loan servicers, and they play an important role in managing your student loans. 

Your loan servicer is who you make payments to and go to when you have questions. The first step in handling your student loans is figuring out who your loan servicer is and setting up an account. 

What Is a Student Loan Servicer? 

Student loan servicers are private companies that have contracts with the government to handle federal student loans. Instead of contacting the government when you have a question or need to make a payment, you contact your loan servicer. 

What Kinds of Things Does a Loan Servicer Do? 

Your loan servicer handles a range of tasks, including: 

• Payments: You will make your loan payments directly to the servicer. If payments are late, the loan servicer will add late fees to your account. 
• Payment Plan Changes: If you can’t afford your current monthly payments, you can contact your loan servicer to ask about your options. They can help you enroll in an income-driven repayment plan and get a reduced monthly payment. 
• Loan Forgiveness: If you plan on applying for a federal loan forgiveness program, such as Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness, you’ll submit the paperwork to your loan servicer. 
• Loan Discharge: Borrowers that are eligible for loan discharge programs like Total and Permanent Disability Discharge will work with their loan servicers to eliminate their loans. 
• Forbearance or Deferment: If you’re experiencing a financial emergency, are returning to school, or lost your job, your loan servicer can place your loans into deferment and forbearance, postponing your payments. 
• Delinquencies and Defaults: If you are late with your payments, your account will become delinquent. If you don’t pay what you owe, your loan servicer will enter your account into default. If that happens, your loan servicer can garnish your wages, send you to collections, and even seize your tax refund. 
• Customer Service: You will contact your loan servicer if you have any questions about your account. For example, if you have a question about how extra payments are applied, you’ll call your loan servicer for information. 

How Do I Find Out Who My Loan Servicer Is?

Your loan servicer is assigned to you after your loan is disbursed. However, you likely will have several different loans by the time you graduate and they can all have different loan servicers — they can also change over time. Before you can repay your debt, you have to find out what servicer is handling your loan. 

There are two ways to find your loan servicer: 

1. National Student Loan Data System (NSLDS): If you have your Federal Student Aid (FSA) ID, you can log into the NSLDS to see what loans you have and who is managing them. To find your servicer, look under the “My Aid” section and click on “View Servicer Details.”
2. Federal Student Aid Information Center: You can also call 1-800-433-3243 for assistance. It is staffed Monday through Friday from 8:00 a.m. until 11:00 p.m. ET, and on Saturdays and Sundays from 11:00 a.m. until 5:00 p.m. 

How Do I Contact My Loan Servicer? 

Once you find out who your loan servicer is, you can contact them if you have any questions or need to make payments. 

As of 2021, there are 10 federal loan servicers. The contact information for each of them is listed below: 

[Note: In 2020, both FedLoan Servicing and Granite State Management & Resources announced that their contracts will end on December 21, 2021 and they will not be renewing them. Last year, Cornerstone also decided to end its federal loan servicer contract. If your loans are one of these loan servicers, they will be transferred to a new servicer. Make sure your contact information is up to date with your current servicer so you’ll receive the notification when your servicer changes.]

FAQS

1. Can my loan servicer adjust my interest rate? 

Over time, you may notice that interest rates on federal student loans have changed. If the current rate on federal pans is lower than the rate you have now, you may wonder if your loan servicer can adjust it. Unfortunately, your interest rate is fixed for the entirety of your repayment term. As noted in your promissory note, it can’t be changed, so there is nothing your loan servicer can do. The only way to get a lower interest rate is to refinance your student loans with a private lender. 

2. What do I do if I’m unhappy with my loan servicer? 

If you’re unhappy with your federal loan servicer, follow these steps: 

• Contact the loan servicer (Again): If you aren’t getting the help you need through the general customer service line, submit an email or secure message requesting a review from the claims department or ombudsman. While you can request to speak to the higher levels via phone, it’s always a good idea to have written records, so email or secure message is usually best. 
• Submit a complaint through the Federal Student Aid Feedback System: You can submit a complaint to the federal government through the Federal Student Aid Feedback System. Typically, you’ll get a response within 15 days. 
• Contact the student loan ombudsman: The federal student loan ombudsman program is designed to handle difficult programs when you’re unable to get resolution through the servicer. You can contact the ombudsman by calling 877-557-2575 or by submitting your issue online. 

3. Can my student loan servicer change? 

Yes, your loan servicer can change over time for the following reasons: 

• Your loan servicer’s contract ended: If your loan servicer’s federal loan contract ends, your loans will be transferred to a new servicer. 
• Your loans were sold: Occasionally, the loan servicer may sell your loans to another company. 
• You consolidated your loans: If you consolidate your loans with a Direct Consolidation Loan, your debt may be transferred to a new loan servicer. 
• You’re applying for PSLF: When you notify your loan servicer that you intend to pursue PSLF, the servicer will transfer your loans to the servicer handling PSLF. As of 2021, the PSLF servicer is FedLoanServicing. However, FedLoan Servicing’s contract ends on December 31, 2021. The loan servicer that will handle PSLF applications going forward has not yet been announced. 

4. Who is my loan servicer if I have Perkins Loans? 

If you have Perkins loans that aren’t owned by the U.S. Department of Education, contact the college or university that issued the loans to find out who your loan servicer is now. In many cases, the school you attended is the loan servicer for Perkins Loans. 

5. How can I get a new loan servicer? 

If you want to switch loan servicers, you can get a new one by consolidating your loans with a Direct Consolidation Loan or by letting your servicer know you plan on applying for PSLF. Otherwise, you’re stuck with your current loan servicer. 

The only other way to get a new servicer is to refinance your student loans with a private lender. However, you’ll lose out on federal loan benefits like PSLF and income-driven repayment plans. 

6. If my loan servicer is FedLoan Servicing or Granite State, what should I do? 

FedLoan Servicing and Granite State Resources & Management announced that they will not be renewing their federal loan servicer contracts, so they will no longer service federal loans after December 31, 2021. 

Before that date, you’ll receive a notification telling you who your new loan servicer is. To ensure you get that information, log into your current loan servicer’s portal and update your contact information.

7. How can I find my private loan servicer? 

If you have private student loans, you cannot find your loan servicer through the National Student Loan Data System or the Federal Student Aid Information Center. Instead, you can find out what loans you have and who owns them by checking your credit report at www.AnnualCreditReport.com. 

Juno can help you find the most affordable possible rates on private student loans. We negotiate on behalf of borrowers with partner lenders to help each student qualify for the best rates they can given their financial situation.

Join Juno today to find out more about your options for affordable private student loans to help fund your degree.