SAN JOSE, California, December 28, 2021 / PRNewswire / – Some big changes have occurred as federal student loan payments have since been suspended march 2020. Here’s what you need to know about student loan service changes, from myFICO.
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Two of the largest student loan managers, companies that handle billing and loan payments, are terminating their contracts with the US Department of Education. This means that millions of borrowers will start making payments to new businesses. when the break on payments expires in January 2022.
You may be affected if you have a federal student loan managed by Navient, which transfers loans to Maximum, or The granite state, whose loans will be processed by Edfinancial.
A third provider, the Pennsylvania Higher Education Assistance Authority, which operates as FedLoan Servicing, will transfer loans to other providers in December 2022.
What to expect
In the weeks leading up to the change, you should receive the name and contact details of your new technician. Make sure to watch your mail and emails so you don’t miss the notice.
Automated recurring payments that you set up with your old server probably won’t transfer to the new server. You will also need to create an online account with the new server if you want to check your balance and make payments online.
Your current payment plan, including forbearance and 0% interest under the CARES Act, remains in place. If you need to request additional forbearance or change your repayment plan after your loan has been transferred, you will work with your new service agent.
How you can prepare
Make sure your current loan manager has your most recent contact details so you don’t miss any important communications about your loan or your new manager. If your loan has not yet transferred, you may still have time to log into your account online or call to verify your information.
Download copies of your previous loan statements so you can keep track of your balance, interest rate, and payment history. Over the years, the Consumer Financial Protection Bureau received thousands of consumer complaints about receiving bad loan information from loan officers. Having your own records gives you the ability to verify the account details you get from your new service agent.
It is worth checking your credit report a few months after the change to verify that your loans are properly reported. Errors in your loan statement can impact your FICO® Score and your ability to get approved for loans and other credit products. Dispute any inaccuracies with the credit bureaus or directly with the loan manager.
Scams often proliferate around major changes like this, trying to trick people into sending money or giving out personal information. Beware of scams related to the cancellation, consolidation or reduction of interest rates on student loans.
Expect to receive your first billing statement from your new service agent a few weeks after forbearance ends. Log into your Federal Student Aid account on StudentAid.gov if your server was Navient or The granite state and do not receive details about your new repairer. You can also call 1-800-4-FED-AID to speak to someone.
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