From Business Insider :
Granite State Management and Resources (GSMR), a nonprofit student-loan company that holds 1.3 million borrower accounts, notified the Education Department that it would not seek renewal of its federal contract to service student loans after December 31, Politico first reported.
"FSA (Federal Student Aid) and Granite State will work together to ensure that student loan borrowers will transition smoothly to a different loan servicer," Richard Cordray, the director of FSA, which is part of the Education Department, said in a statement obtained by Insider. "Our wind-down plan will include early and frequent communications and clear guidance about what borrowers should expect."
My last remaining student loan is with them. 🙄 I've never had a problem with their service, ever. This may complicate my plans for the end of the year/beginning of the year, which means I may need to move my timeline up a bit.
Thanks for the info! My youngest DD has her SL with GSMR, and they have been great to deal with. I'm hoping the new servicer(s) will be similar.
What happens to the loans that are transitioned to another servicer? I suspect the below but someone please acknowledge or correct my assumptions:
- The original GSMR loans still show in the credit history for another 10 years or so as "Closed".
- If so, I assume they update with a $0 balance and no longer noted as "deferred" or other remark other than "Closed"?
- The new servicer "opens" a new loan for every independent loan that GSMR held.
- Surely the new servicer doesn't lump all the loans together into a single loan, since the interest rates may be different... but not exactly sure here.
- Do the newly open loan(s) carry the same interest % as those previously on GSMR or do they reset to interest % to current levels?
- New loans from the new servicer will appear as "new" to FICO scoring, so age of accounts can be affected.
- And the opening date is the date that the transition occurred... or could it possibly be the original loan opening date that GSMR assumed the loan?
@Duke_Nukem wrote:Thanks for the info! My youngest DD has her SL with GSMR, and they have been great to deal with. I'm hoping the new servicer(s) will be similar.
What happens to the loans that are transitioned to another servicer? I suspect the below but someone please acknowledge or correct my assumptions:
- The original GSMR loans still show in the credit history for another 10 years or so as "Closed".
- If so, I assume they update with a $0 balance and no longer noted as "deferred" or other remark other than "Closed"?
- The new servicer "opens" a new loan for every independent loan that GSMR held.
- Surely the new servicer doesn't lump all the loans together into a single loan, since the interest rates may be different... but not exactly sure here.
- Do the newly open loan(s) carry the same interest % as those previously on GSMR or do they reset to interest % to current levels?
- New loans from the new servicer will appear as "new" to FICO scoring, so age of accounts can be affected.
- And the opening date is the date that the transition occurred... or could it possibly be the original loan opening date that GSMR assumed the loan?
If it's anything like the last (and only time until now) my loan servicer was changed, the old account stays on the credit report but the new account is backdated to when it was opened.
Here's a screen shot of all my student loans, both opened and closed (the red ones are my lates 🙄).
And here's one with the old loans listed, only showing on TU and EQ:
And here's the one that's open now (dates from the last FICO pull, but your get the picture!)
I just got an email about who's taking over my accounts:
@Adkins wrote:I just got an email about who's taking over my accounts:
I just got the notification too. Ugh 😩 I had when they change hands.
And I just got a welcome email from Edfinancial this evening.
And it's showing on my credit reports, with an open date or 8/2008, when I first got my student loans.
Credit Karma is showing that the Granite State Management Loans have been removed from both TU and EQ 👎👎
Ironically, my original loans are still showing but they are due to fall off this year's