Over the next few months, many federal student loan borrowers will have their loans transferred to a new servicer. If your loans are currently being serviced by FedLoan Servicing or Granite State, this blog post can help you prepare for the transition to a new servicer.
Who is impacted?
- Borrowers with loans currently serviced by Granite State or FedLoan. This includes anyone pursuing Public Service Loan Forgiveness (with a processed Employment Certification Form) or TEACH Grant forgiveness.
What should I expect?
- The Department of Education will send you a notice. You should also receive notices from your current servicer prior to the transfer. If you need help after the transfer you can call your new servicer. Be on the lookout for more information.
- Your payment amounts and CARES Act forbearance period stay the same. Even though your loans will have a new servicer, it will not impact your balance, existing terms, interest rates, or available repayment plans.
What should I do?
- Update your contact information. Log in to your current servicer's website and confirm your contact information is correct. Make sure your current servicer has accurate contact information for you, even if you’re still in school. This way you will be alerted when the transfer is taking place, and if there are any actions you need to take.
- Open your mail and email from your servicer. Your current and new servicers are trying to reach you. It is important to read any communication they send carefully so you don't miss important information.
- Save copies of your payment history. Print or save as a PDF any documents or statements on your current servicing portal. Having a copy of your account information is a great way to ensure your information is accurate after the transfer is complete.
- Set a reminder. Once you receive a transfer date, consider making a calendar reminder, so you can be sure to log in to the new servicer's website and verify your information is accurate.
- Beware of scams. Scammers are always looking for ways to steal your money, but you can protect yourself by knowing what to look out for. Warning signs of a student loan scam include promises to reduce or eliminate your student loans, requests for your Federal Student Aid information, pressure to pay up-front fees, and individuals claiming to be affiliated with the Department of Education or your current student loan servicer. If you are suspicious of the company contacting you, contact your current servicer. More tips on spotting scammers can be found on the CFPB's fraud and scams page.
Issues related to servicing transfers
If you’re having issues with your student loan because your servicer has changed, you may contact both your current and new servicers about the error. For example, you should contact your servicers if:
- You never received a notice of transfer
- You think your information did not transfer correctly (for example: your interest rate or repayment plan changed)
If you have a problem with a student loan servicer, you can also submit a complaint to the CFPB. We can help get you a response, generally within 15 days.