FedLoan Replacement

[Jshepherd04]

I've been patiently waiting also. Just got my email this morning that my loans are going too AidAdvantage, skipping Navient also.

[Limitless3000]

I have received a notice that FED Loan will no longer service student loans. They have not informed me who my new provider may be. I am afraid. I submitted document for the loan forgiveness program and it states that they are reviewing my information & that it may take several months to process. That's crazy because I may have a new provider in a few months. I hope my already credited years of service isn't lost of messed up.   

[calyx]

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@Limitless3000FedLoan has received a one year extension of its contract - don't worry yet (I also have FedLoan and follow SL news pretty closely).

[Anonymous]

Mine went to Nelnet... according to CK fed loans reported mine closed yesterday and my CK scores dropped about 100 points... will probably get pummeled again once nelnet re-reports as "new" debt. Im sick to my stomach over this. We just finally got mortgage ready and were expecting to start home shopping in the next few months. The timing could literally not be worse.

[pizza1]

Well , fedloan reported closed/ transferred on my reports. Mohela hasn’t reported yet😔

[Limitless3000]

@calyx  Thanks 

[ccquest]

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@Anonymous wrote:

Mine went to Nelnet... according to CK fed loans reported mine closed yesterday and my CK scores dropped about 100 points... will probably get pummeled again once nelnet re-reports as "new" debt. Im sick to my stomach over this. We just finally got mortgage ready and were expecting to start home shopping in the next few months. The timing could literally not be worse.

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If it makes you feel better, Credit Karma scores aren't entirely representative of what your mortgage company would see.

Depending on what sort of accounts you have, you may have lost all of your "credit mix" with installment loans so once the new one reports it may go right back up again.

[calyx]

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@ccquest wrote:

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@Anonymous wrote:

Mine went to Nelnet... according to CK fed loans reported mine closed yesterday and my CK scores dropped about 100 points... will probably get pummeled again once nelnet re-reports as "new" debt. Im sick to my stomach over this. We just finally got mortgage ready and were expecting to start home shopping in the next few months. The timing could literally not be worse.

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If it makes you feel better, Credit Karma scores aren't entirely representative of what your mortgage company would see.

Depending on what sort of accounts you have, you may have lost all of your "credit mix" with installment loans so once the new one reports it may go right back up again.

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It should not report as "new" debt - it'll be backdated, so don't worry too much about it.
Also, CK/vantage scores are pretty far from mortgage scores (FICO 2, 4, & 5).

[Crimsonglory]

I must be an outlier. My FedLoan went to EdFinancial. Had notices since around October and just received confirmation last week that all is transferred. It basically says "This letter is to inform you that effective 2/4/22 the US DOE transferred the servicing of your student loan from FedLoan Servicing to Edfinancial Services". It also says any auto-pay arrangement info has been transferred as well, which is what I had done. I'm wondering if mine went to EdFinancial because I still owe almost the entire thing, having made only 1 payment before the pandemic hit and everything halted. 

As a side note, the letter also says: "Now that we are servicing your federal student loans, you may see some changes on your credit report. Within 90 days, your old federal student loans will now be reported by us".