topic Re: New student loan servicers in Student Loans

New student loan servicers

cr101 — Fri, 26 Jun 2020 09:34:11 GMT

https://www.forbes.com/sites/adamminsky/2020/06/25/huge-changes-are-coming-to-student-loan-servicing/#55762304626b

Some key pieces from the article...

In a press release this week, the Department announced that it has signed servicing contracts with five new companies who will take over federal student loan servicing: EdFinancial Services, F.H. Cann & Associates LLC, MAXIMUS Federal Services Inc., Missouri Higher Education Loan Authority (MOHELA), and Texas Guaranteed Student Loan Corporation (Trellis Company)....

The current loan servicers that manage the Department’s vast federal student loan portfolio are not happy. Nelnet, which is one of the Department’s major contractors (along with Great Lakes, Navient, and FedLoan Servicing) released a scathing statement after being denied a new contract with the Department of Education, stating that they are “shocked” that “two of the highest rated servicers” (Nelnet and Great Lakes) will “not be considered by the Department for this contract. We are frustrated and disappointed by this decision and the lack of transparency in the process.”...

The current servicing contracts expire on December 14, 2020, with two potential six-month extensions at the Department's discretion through December 14, 2021. Thus, student loan borrowers could see significant servicer changes as soon as the end of the year.

Student loan borrowers should consider periodically downloading and retaining relevant loan records, payment histories, and servicer correspondence to mitigate the risk of records being potentially lost in bulk servicing transfers.

Re: New student loan servicers

calyx — Fri, 26 Jun 2020 16:48:23 GMT

Huh...

MOHELA and TG/Trellis were servicers beforehand, so I wonder what the changes are? TG had been servicing my loans all the way from when I got them as FFELs in the early 90s through my (two) defaults.

And honestly, if I could have kept TG/Trellis, I would have. I actually had some really good customer service through them (they're also the ones that were really generous re: Goodwilling).

Re: New student loan servicers

beutiful5678 — Sun, 28 Jun 2020 20:57:41 GMT

This is interesting...

I've had Nelnet and MOHELA and now Great Lakes. Nelnet and Great Lakes had/have pretty good customer service whereas MOHELA was terrible.

Re: New student loan servicers

Anonymous — Thu, 09 Jul 2020 13:23:27 GMT

Any information on what will happen to those that are currently being serviced by a servicer like Nelnet that is being phased out?

Re: New student loan servicers

cr101 — Thu, 09 Jul 2020 15:13:37 GMT

@Anonymous wrote:
Any information on what will happen to those that are currently being serviced by a servicer like Nelnet that is being phased out?

No idea, but I imagine that it's the same process for normal service provider changes. Try saving your records (payment history, contracts, etc) in case there's an issue with the transition.

Re: New student loan servicers

jasonbourne84 — Thu, 09 Jul 2020 19:45:23 GMT

Student loan borrowers should consider periodically downloading and retaining relevant loan records, payment histories, and servicer correspondence to mitigate the risk of records being potentially lost in bulk servicing transfers.

This is correct. I just called FedLoan and asked them to mail me all billing statements, all account related letters, and all payment information and account summary information for the life of my loans.

Given that I've had these loans since the Earth cooled, I imagine they'll deliver them via train car.

Re: New student loan servicers

beutiful5678 — Sun, 12 Jul 2020 23:25:05 GMT

@jasonbourne84 wrote:

Student loan borrowers should consider periodically downloading and retaining relevant loan records, payment histories, and servicer correspondence to mitigate the risk of records being potentially lost in bulk servicing transfers.
This is correct. I just called FedLoan and asked them to mail me all billing statements, all account related letters, and all payment information and account summary information for the life of my loans.

Given that I've had these loans since the Earth cooled, I imagine they'll deliver them via train car.

Oh this is a good idea! I should also to ask for an amoritzation of my loan so that I can see the incurred interest.