If you took out a federal student loan to pay for college costs, you wouldn’t have to pay the government back. There are a lot of loan servicers who work with the US Department of Education to make sure that people who get federal student loans pay them back. This is very important for the process of repaying your loan. You must understand your loan servicer’s role.
Loan servicers: What Are They?
Student loan servicers manage your federal student loans’ disbursement, billing, and customer service. If you have a lot of student loans, they can help you figure out things like which repayment plan to choose and whether to consolidate your loans. Need to put off or delay something. Besides, they can help you set that up, too. Loan servicers are like a one-stop-shop for everything you need to know about your federal student loans. They can help you make changes to your loans, too.
There is a list of the biggest student loan companies that service student loans.
Here are some of the big companies that help people with their student loans:
Services from EdFinancial (HESC)
Financial Services is based in Knoxville, Tennessee, servicing loans for more than 25 years. They work with both nationwide and private student loans and schools that need help with financial aid processing. They also work with schools that need help.
Federal Loan Servicing (PHEAA)
A non-profit group called FedLoan Servicing was set up in 2009 to service federal student loans through an association with the US Department of Education. FedLoan Servicing doesn’t make money from servicing loans. Pennsylvania Higher Education Assistance Agency (PHEAA) runs it. It is based in Harrisburg, Pennsylvania, and has a lot of employees.
Education Loan Services of the Great Lakes, Inc.
For more than 50 years, Great Lakes Higher Education Corporation and Affiliates was a non-profit group that worked to help students get into college by acting as a guarantor, servicer, and philanthropist. Nelnet bought them in 2017 to serve both government and private loans.
There are two offices in Missouri and one in Washington, DC. MOHELA is a student loan servicer based in St. Louis, Missouri. If you need a federal student loan, they’ve been around for more than 30 years.
Some people think that Nelnet is the biggest company in the United States that helps people with their student loans. They are based in Lincoln, Nebraska, and they service both federal and private student loans. They also own it. They are a for-profit company that is on the New York Stock Exchange.
Servicing for OSLA
OSLA has been taking care of student loans since 1972. They specialize in taking care of federal student loans. The state of Oklahoma set up the group as a public trust. It is a non-profit.
A company called Maximus Education called Advantage helps the US Department of Education with either Direct or FFEL loans. The advantage is a branch that works for Maximus Education LLC. There was a student loan servicer called Navient, but it stopped working for the US government in September 2021, so Advantage took over the loans that Navient was in charge of before that.
Founded in 1972, ECSI is the company’s name that makes educational computers. In addition to being a student loan servicer for federal student loans, they also help with tax document services, tuition payment plans, refund management, and other things.
Group for Default Resolution
This group is part of the US Department of Education and helps people with federal student loans that aren’t paid back or who have overpaid their grants. Federal Pell Grants, for example, may have to be paid back in part when the student gets more money than they need.
SoFi Student Loans
If you need a private student loan, the lender is usually responsible for the loan service. Getting private loans can be a good way for students who don’t get enough federal aid or scholarships to pay for their school. They don’t always have the same benefits as federal student loans, like options for deferment or the ability to apply for Community Service Loan Forgiveness, so they are usually only considered after a student has looked at all of their other options.
SoFi gives private student loans to undergraduate and graduate students or their parents, who want to pay for them. These loans don’t charge any fees, and there are four different repayment options for people to choose from. As soon as you get a loan from SoFi, SoFi is in charge of paying your debts. In the SoFi app or online, borrowers can pay back their loans. They can also get help from customer service at any time.
Find Your Student Loan Servicer
Your loan servicer will be chosen for you when the money comes in. You can’t choose them. Don’t be alarmed if you don’t know who your loan servicer is. You can still get your money back. It’s easy to find a service provider. By going to the Department of Education’s student aid website, you can find out your federal student loans and how to get in touch with your loan servicers. Also, student loans can be moved between services, but you should be told if that happens.
Is It Possible to Switch Student Loan Servicers?
Student loans can sometimes be moved from one service to another, but this usually doesn’t happen just because a borrower asks for it. One way to change servicers is to move your student debt from federal debt to private debt.