What is a servicer of a student loan?
A loan servicer is a company that we assign to handle the billing and other services on your federal student loan on our behalf, at no cost to you.
Who are the main student loan servicers?
The largest loan servicers currently in the space are:
- American Education Services (AES)
- CornerStone.
- EdFinancial (HESC)
- FedLoan Servicing (PHEAA)
- Granite State (GSMR)
- Great Lakes Educational Loan Services, Inc.
- MOHELA.
- Navient.
Who is the largest student loan servicer?
Nelnet. Nelnet is one of the biggest student loan servicers in the country.
Can I choose who services my student loans?
When you first get federal student loans, you can’t choose your servicer — the company contracted by the government to manage your loans. But you can change student loan servicers if you consolidate. There’s no reason to make a change if you’re fine with your current servicer.
What does a loan servicer do?
Your loan servicer typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, manages your escrow account (if you have one). The loan servicer may initiate foreclosure under certain circumstances.
Is Nelnet a loan servicer?
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.
How many loan servicers are there?
The seven federal student loan servicers Learn more about each of the federal loan servicers, including what they can do and how to contact.
Is Nelnet a federal loan servicer?
Nelnet is the largest servicer of federal student loans and administers the Total and Permanent Disability Discharge Program. Borrowers don’t get to choose their federal loan servicer but, if they’re unhappy, can change by consolidating or refinancing.
Is Sallie Mae a federal student loan?
All new Sallie Mae loans are private. But if you took out a Sallie Mae loan before 2014, it might have been a federal loan and is likely now serviced by Navient. Sallie Mae started off under the federal government and provided loans through the Federal Family Education Loan program, or FFEL.
Is Navient a federal loan servicer?
Is Navient Federal or Private? While Congress originally created Sallie Mae to support the federal student loan program, it was eventually privatized. Navient is a private company that the U.S. Department of Education once hired to service its federal loans.
Can I change my loan servicer?
The only way to change your mortgage servicer is to refinance your mortgage with a different lender. However, there is no guarantee the new lender will not sell the loan to a servicer with which you’ve had bad experiences in the past.
Why does my student loan servicer keep changing?
Sometimes loan servicers can change for reasons outside of the borrowers control. The Department of Education may simply decide not to renew your servicer’s contract. And when the current contract expires, your account will need to be moved to a new company.