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Gov reducing from 9 student loan servicers to 1

Valued Member

Gov reducing from 9 student loan servicers to 1

Just saw an article this morning stating that the Dept of Ed under the current administration wants to reduce from 9 companies that service student loans down to 1. The previous administration wanted to reduce from 9 servicers to 4. The final servicer hasn't been determined yet.

http://www.wcnc.com/mb/ext/news/nation-now/what-student-loan-borrowers-can-expect-in-trump-s-change-...

04/20/17 - Fico Score 8: EQ 695, TU 689, EX 728; Mortgage: EQ 731, TU 740, EX 815
05/20/17 - Fico Score 8: EQ 763, TU 767, EX 753; Mortgage: EQ 796, TU 773, EX 804
06/20/17 - Fico Score 8: EQ 772, TU 780, EX 764; Mortgage: EQ 799, TU 785, EX 819
07/20/17 - Fico Score 8: EQ 796, TU 778, EX 781; Mortgage: EQ 795, TU 781, EX 809
08/21/17 - Fico Score 8: EQ 796, TU 778, EX 781; Mortgage: EQ 795, TU 781, EX 809
09/27/17 - Fico Score 8: EQ 800, TU 786, EX 783; Mortgage: EQ 795, TU 785, EX 819
11/10/17 - Fico Score 8: EQ 807, TU 786, EX 783; Mortgage: EQ 812, TU 793, EX 822
Message 1 of 9
8 REPLIES
Valued Member

Re: Gov reducing from 9 student loan servicers to 1

I read its Navient. The one with the most complaints. ugh. 

Message 2 of 9
Regular Contributor

Re: Gov reducing from 9 student loan servicers to 1

My loans were just transferred to Navient after coming out of default and in my one attempt to contact them, I am already not happy!  Can't even talk to them on the phone due to "high call volume".  My only option is to schedule a call back (three hours later), couldn't even wait on hold for a representative...  Not to mention just getting to that option was an ordeal!  Sigh...

FICO8 Scores as of 8/8/17: EQ-643 TU-644 EX-629
Current FICO8 Scores as of 12/7/17: EQ-675 TU-658 EX-652
Current Mortgage Scores: EQ-686 TU-677 EX-641
Goal: all FICO8s above 700
Message 3 of 9
Established Contributor

Re: Gov reducing from 9 student loan servicers to 1

Thanks for posting this. 

 

So it looks like only 4 are bidding, 2 of those are bidding as one.  Bidding is within the next few months.  And then the new servicer will be up and running within 18 months.

 

I have Great Lakes and have been happy with them.  Hopefully they win.  

 

If not, I may just pay my small loan off to avoid the possibility of them adding another account to my report or screwing up the reporting.

Message 4 of 9
Valued Member

Re: Gov reducing from 9 student loan servicers to 1


stellar wrote:

Thanks for posting this. 

 

So it looks like only 4 are bidding, 2 of those are bidding as one.  Bidding is within the next few months.  And then the new servicer will be up and running within 18 months.

 

I have Great Lakes and have been happy with them.  Hopefully they win.  

 

If not, I may just pay my small loan off to avoid the possibility of them adding another account to my report or screwing up the reporting.


Yes, Stellar, I saw the same thing as you -- that the final servicer hasn't been decided yet. Upthread someone said it was Navient but I can't find that info corroborated anywhere.

 

I just had a transfer from Mohela, who I was very happy with, to FedLoan. It went smoothly, even if it seemed to take longer than I'd have liked. No real opinion yet of FedLoan.

 

While consolidating to 4 servicers from 9, which is what the Obama administration wanted to do, seems OK to me as it keeps competition alive -- consolidating to just one servicer worries me. Where is the incentive to provide excellent service to borrowers if there are no competitors? I might talk to my representative in the U.S. House about the issue. Even if Congress doesn't have a say in the workings of the Dept of Ed, she might be willing to make a public statement of concern on behalf of borrowers.

 

 

04/20/17 - Fico Score 8: EQ 695, TU 689, EX 728; Mortgage: EQ 731, TU 740, EX 815
05/20/17 - Fico Score 8: EQ 763, TU 767, EX 753; Mortgage: EQ 796, TU 773, EX 804
06/20/17 - Fico Score 8: EQ 772, TU 780, EX 764; Mortgage: EQ 799, TU 785, EX 819
07/20/17 - Fico Score 8: EQ 796, TU 778, EX 781; Mortgage: EQ 795, TU 781, EX 809
08/21/17 - Fico Score 8: EQ 796, TU 778, EX 781; Mortgage: EQ 795, TU 781, EX 809
09/27/17 - Fico Score 8: EQ 800, TU 786, EX 783; Mortgage: EQ 795, TU 785, EX 819
11/10/17 - Fico Score 8: EQ 807, TU 786, EX 783; Mortgage: EQ 812, TU 793, EX 822
Message 5 of 9
Established Contributor

Re: Gov reducing from 9 student loan servicers to 1

quote kimbersleep:

While consolidating to 4 servicers from 9, which is what the Obama administration wanted to do, seems OK to me as it keeps competition alive -- consolidating to just one servicer worries me. Where is the incentive to provide excellent service to borrowers if there are no competitors?

 

I completely agree.  It may be easier for the gvmt to manage, but may not be better for us as consumers.

Message 6 of 9
Established Contributor

Re: Gov reducing from 9 student loan servicers to 1

Message 7 of 9
Contributor

Re: Gov reducing from 9 student loan servicers to 1

FedLoan holds my federal loans. Navient holds my private.

 

Literally any thought of Navient holding all of my loans makes me sick to my stomach.

My FICO Scores:
9/17: EQ - 542 / TU - 535 / EX - 506 // Mortgage: 553, 545, 486
10/ 17: EQ - 558 / TU - 563 / EX - 586 // Mortgage: 554, 568, 536
11/17: EQ - 630 / TU - 589 / EX - 614 // Mortgage: 606, 606, 572
12/17: EQ - 630 / TU - 624 / EX - 619 // Mortgage: 584, 612, 671





Journey Milestones: Completed Federal Student Loan Rehab in Sept 2017. Settled First Premier Bank CC in August 2017. Constant uphill battle with Navient incorrect reporting on seven (7!) private student loans. No TLs listed in delinquency. Obsessively keeping 2 CC UTI @ 7-9% monthly.

End Goal: Pre-Approval for FHA Spring/Summer 2018
Message 8 of 9
Regular Contributor

Re: Gov reducing from 9 student loan servicers to 1


LindysMom wrote:

FedLoan holds my federal loans. Navient holds my private.

 

Literally any thought of Navient holding all of my loans makes me sick to my stomach.


Basically!

 

I have FedLoan for my fed loans that are eligible for Public Service Forgiveness and UHEAA for the ones that aren't.  I don't like the idea of only one company holding all of the country's federal student loans.  That's too big brother like for my taste. 

11-8-15: EQ-594 TU-599 EX-579
11-7-17: EQ-716 TU-722 EX-696
Message 9 of 9