5 Ways to Protect Yourself in the Student Loan Servicer Change

5 Ways to Protect Yourself in the Student Loan Servicer Change

By: Solid Serenity Legal Solutions

The U.S. Department of Education recently announced plans to overhaul the Federal Student Loan servicing system starting this December. The department announced it will use 5 new companies to manage most Federal student loans.

These companies are :

(1) EdFinancial Services

(2) F.H. Cann & Associates, LLC

(3) Texas Guaranteed Student Loan Corp.

(4) Missouri Higher Education loan Authority

(5) MAXIMUS Federal Services, Inc.

If your Federal Student Loans aren’t already serviced through one of these companies, your loans may be transferred to one of the listed 5 servicers. Transfers can be messy for student loan borrowers. Start planning now so you can protect yourself during the change.

Here are 5 Ways to protect yourself in the student loan servicer change.

(1) Save All Payment Records

When servicers send paperwork to a new company, there can be a lot of confusion. You can prevent lost payment information during the change by downloading and saving your payment history now.

Most servicing companies have online platforms where you can access this info easily and quickly. If yours doesn’t, be sure to call and egt your payment history from your servicer.

(2) Get Copies of All Communications

Hold on to the information you get from your loan servicer. That information could be useful years from now.

For example, you may be in forbearance or paying your loan back based on your income. If you have that information available, you can prevent a lot of headaches when dealing with your new loan servicer.

(3) Certify Public Service Employment

Servicers rarely transfer paperwork related to public service loan forgiveness. If you’re planning on using the PSLF program, get a certification that your employment qualifies and get records of any qualifying payments made to date.

Note that requesting this Certification may transfer your loan to FedLoan Servicing. So, be sure to save all correspondence and records you need from your current servicer before making the request.

(4) Keep An Eye On Payments

During a loan transfer, payment records can be lost, borrowers can be subject to additional fees, and account records can disappear. Review your accounts each month to make sure they are on track.

If your account was set up with auto-debits, be sure to set up auto withdrawals with the new company as well.

(5) Watch Your Credit Report

Sometimes, transfers result in mistaken negative credit reporting. You can catch any errors by watching your credit report. If you see something that isn’t right, report it to the Credit Bureaus and ask that it be removed.

Preparing for student loan servicer changes is a small part of a bigger battle. Book online to get a plan set up to nurture your family and defend your assets.

Find out more about habits that grow your wealth here.

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