Millions of student loan borrowers will have a new loan servicer when payments restart in the coming months.
While loan payments were paused for three years during the COVID-19 pandemic, several of the companies that managed federally backed-student loans stopped doing so.
It’s estimated that four in 10 borrowers who have federally backed student loans will have a new servicer for their loan, the Consumer Financial Protection Bureau said.
What do you need to do if you have a new loan servicer?
The most important thing is to watch your emails and mail.
If your loan has been transferred to another servicer, you should receive an email telling you so. Those email notices will tell you what you need to do to get a payment to them and when your payment is due.
Which lenders have made servicer changes?
According to the Department of Education, the DOE signed contracts with five companies to “modernize and enhance loan servicing for more than 37 million borrowers with federally managed loans.”
The companies are Central Research, Inc.; EdFinancial Services; Maximus Education, LLC; Missouri Higher Education Loan Authority (MOHELA); and Nelnet Diversified Solutions.
Borrowers can check on their servicer by going to StudentAid.gov, but here is what we know about the new servicers, according to NBC News:
- Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority.
- Borrowers serviced by Granite State will be serviced by EdFinancial Services.
- Borrowers with Great Lakes Higher Education will be managed by Nelnet.
- Borrowers who had loans serviced by Navient will be moved to Maximus Federal Services/Aidvantage.
According to the DOE, the new loan servicing environment “will provide all federally managed student loan borrowers with complete account management capabilities on StudentAid.gov; reduce disruptions from account transfers; and increase servicer accountability through clear, service-level metrics.”
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