MyFedLoan Servicing was well-known to a lot of federal student loan borrowers. This was the institution that bridged you with the Department of Education, through which it would process your payments, fill out your forms on repayment plans and guide you on earning forgiveness by working in the public service (Public Service Loan Forgiveness – PSLF) among others.
However, this took a different direction in 2022. This article explores how stopping MyFedLoan Servicing will affect borrowers.
In 2009, MyFedLoan Servicing began servicing federal student loans. They specialized on loans under income-driven repayment plans and those which were getting forgiven through PSLF.
MyFedLoan Servicing Contract Expiration
In December 2022, the contract between MyFedLoan Servicing and the Department of Education came to an end. Consequently, they ceased managing federal student loans. But hey! Your loans themselves didn’t disappear! All it meant is that they were assumed by new servicers.
Who’s your MyFedLoan new servicer?
Ever wondered what happened to MyFedLoan Servicing, which was your student loan servicer? If you did have them, do not worry because you are not alone! The end of MyFedLoan’s contract with the Department of Education came in December 2022. But don’t fret; they simply shifted them to MyFedLoan new servicer.
MOHELA, Your Next Loan Partner
One of the major borrowers taking over from MyFedLoan is MOHELA (Missouri Higher Education Loan Authority). It has taken over a large portion of your previous accounts with MyFedLoan. MOHELA specializes in servicing federal student loans, so they’re well equipped to handle yours.
However, MOHELA isn’t the only game in town. Here are some other possible candidates for the other servicers that may be managing your loans currently:
- MOHELA
- Aidvantage (formerly Navient)
- Edfinancial
- Nelnet
There were various considerations used by the Department of Education in assigning borrowers to one of these entities. So how do you find out who is now handling your new MyFedLoan servicer?
Finding Your New Servicer
There are two ways to find out who is now responsible for your loan from My Fedloan:
- NSLDS (National Student Loan Data System): This is a free government service providing an overview of all federal student loans. Here is how you can use NSLDS to find your servicer:
- Go to Federal Student Aid website https://studentaid.gov/
- Click on “Federal Student Aid Data System (NSLDS)”
- Create an FSA ID or login if you already have one
- On the NSLDS website, navigate to “My Loan Servicers” section
- Communication from Your Servicer: You should have received correspondence from your MyFedLoan new servicer around the time of transition. These may be emails or letters that provide information about your account and instructions for accessing their online portal.
- Federal Student Aid Information Center: If you are still unsure who your new servicer is, you can reach out to the Federal Student Aid Information Center at 1-800-433-3243. They will assist you in finding your servicer and also answer any queries regarding the process.
Creating Your Account with Your New Servicer
Begin by setting up with your MyFedLoan new servicer. Below are the steps:
| 1. Identify the New Servicer: Use methods described in the previous article such as information from (your servicer) or National Student Loan Data System (NSLDS) to find out who your new Federal Loan servicer is if you haven’t yet. 2. Find the Servicers Site: Visit your new servicers website. Most of them like MOHELA, Aidvantage, Edfinancial and Nelnet have user-friendly websites which provide clear instructions on how you can create an account. 3. Make Your Account: In most cases there is usually a link or button that says “Create Account” or “New User Registration”. Normally such basic information as SSN, DOB, last four digits of SSN associated with your loan together with account creation details are required. 4. Follow Through With Prompts: The registration process may differ slightly depending on who your new servicers are but normally you will be taken through creating of username, password and security questions. |
Congratulations! Once again; welcome aboard at your new MyFedLoan servicer. Now let us make this experience better:
Updating Information & Going Paperless
- Update Contact Info: Verify that all contact details including email addresses and phone numbers are correct with the new servicer. This way, they can send you important messages such as loan reminders.
- Go Paperless: Many servicers have paperless options for getting statements and other loan communication electronically. It is an easy and environmentally friendly way to keep in touch with your loans. Find options within your account that allow you to select paperless communication.
Take Control of Your Loans with Your New Servicer
Now that you’re all settled in, you’ll want to explore what features and tools they offer to help you manage your student loans better. Here are a few key areas:
Making Payments:
- Payment Options: Most servicers offer various payment methods like credit cards, debit cards, electronic bank transfers or checks mailed. Look through all the available options and choose one that suits your needs best.
- Autopay: One way of avoiding late fees or missing a payment is by setting up automatic payments. Also check if your servicer offers discounts on autopay enrolment.
Repayment Plans:
- Knowing Your Choices: There are different repayment programs for federal students’ loans depending on their income and money status.
- Check If You Qualify: Review the different repayment plans offered by your new servicer and see if you qualify for any that could potentially lower your monthly payments or shorten your repayment term.
To make sure that the process goes on without any hitches, you should do this and be conversant with your brand new MyFedLoan servicer’s tools and resources.
Remember: What will happen when I leave my fed loan? (info about types of repayments). If you don’t know which plan is right for you, call their customer service department where someone will assist you purchase it.
What Will Be Different With Your New Servicer?
Although they have found a new home for your loans, the main aspects of your loans remain intact. This implies:
- Interest rate: Regardless of the servicer, interest rates on your loans will not change.
- Loan amount: The total amount you owe on all loans will always remain same.
- Progress towards forgiveness (if applicable): If MyFedLoan served as the loan holder for programs like PSLF where there is debt forgiveness opportunity, then this progress shall be transferred to another lender when relevant.
But your MyFedLoan new servicer might not have the same way of doing things. Here are a few tips:
Nevertheless, there could be some changes in how things work with your new servicer and here are few pointers to keep in mind:
- New online portal: With your new servicer, you will need to open an account through which you will access information about loans before repaying them as well as managing repayment plan.
- New features and services: Different servicers offer different set of features and services on their websites. Just go through the website for MyFedLoan servicers so that you can know what tools and resources they have.
By becoming acquainted with your new MyFedLoan servicer, you will ensure an easy switch over while still being able to manage your student loans effectively. Remember that the Department of Education as well as your new servicer is available to help you in this transition process. Do not hesitate to contact them if there is any query or concern regarding it.
Loan Forgiveness With New Servicer
When dealing with MyFedLoan Servicing as you sought Public Service Loan Forgiveness (PSLF) or TEACH Grant forgiveness, it is possible that you may have some questions about how the switch to a new servicer might affect your progress. These are the things you need to know:
PSLF and TEACH Grant
Good news is that your path towards PSLF or TEACH Grant forgiveness should automatically transfer to your new servicer. Borrowers enrolled in these programs are being assured of a seamless transition by the Department of Education.
The main takeaways include:
| Benefit | Description |
|---|---|
| Progress Tracking | The Department of Education tracks all PSLF and TEACH Grant qualifying payments. |
| Minimal Disruption | Changing servicers won’t interfere with meeting program requirements for loan forgiveness. |
Checking Your Transfer Status
Even though this process of moving is usually smooth, it always pays off to re-confirm if you got transferred right with a new loan service provider. Here’s how you can do that:
- Identify Your New Servicer: If you don’t already know, find out from previous articles methods such as National Student Loan Data System (NSLDS) or communication from your servicer how to check who they are.
- Contact Your New Servicer: You will find their contact information on their website for most servicers’ customer service departments.
- Verify Your PSLF/TEACH Grant Status: You must ask about how far along they are in terms of forgiving these loans and if indeed any delays happened during transferring qualifying payment history.
Here are some additional tips to stay on track with your forgiveness program:
- Keep making eligible payments: You must not stop! Be sure that your MyFedLoan new servicer is processing your payments accurately.
- PSLF/TEACH Grant employment certifications: For those in such programs, continue to send in any documentation regarding your teaching job to be assessed by the Department of Education through the new loan service provider.
- Stay informed: Occasionally visit your new servicer’s website or check their communication for updates concerning PSLF or TEACH Grant forgiveness.
Troubleshooting Common Issues
Despite the smoothness of transferring there could be slight chances of encountering a few bumps along the way. The following will help you address two common issues:
- Payment Processing Delays: Contact them immediately if they process any payment slowly than it ought to have been done. They shall examine and fix this problem.
- Document Transfer Issues: In the event that you are doubtful about whether your PSLF/TEACH Grant employment certifications were successfully transferred from MyFedLoan Servicing, contact both this firm and other companies which may have assumed its role for confirmation purpose.
You can alternatively store copies of related certificates at the Department of Education directly and avoid sending them via post.
Smooth Transition Assistance
Do you need help with transferring or managing PSLF/TEACH Grant? Consider these valuable sources:
- New Servicer’s Customer Care: Speak to them first about account queries and PSLF/TEACH Grant status updates.
- Federal Student Aid Information Center: Call 1-800-433-3243 if you have general questions on forgiveness programs.
- Department of Education’s PSLF Help Tool: Go to studentaid.gov/pslf and find out one’s progress and get answers.
- Federal Student Aid Website: For all the information on how to pay back loans or manage new ones with a different lender visit studentaid.gov.
- Consumer Financial Protection Bureau (CFPB): This site provides detailed guidelines for MyFedloan servicing as well as borrower rights at consumerfinance.gov/complaint.
Stay proactive and informed to navigate the transition smoothly and continue towards achieving loan forgiveness under PSLF or TEACH Grant programs.
Conclusion
MyFedLoan Servicing is no more but another servicer takes up your loans. Use the National Student Loan Data System (NSLDS) or messages from your previous servicer to identify your new servicer.
Register with the new servicer, thereby making it possible for you to access your loans, make payments and manage your plan and update contact information so that you don’t miss notices.
For those receiving PSLF or TEACH Grant, the change should be seamless. Your progress is tracked centrally. But let your new provider know who you are so that they will keep in touch with FedLoan Servicing about you.
