Month: July 2021

Your Student Loan Servicer Is Changing: 7 Steps To Protect Yourself Now

The Pennsylvania Higher Education Assistance Authority (PHEAA), whose servicing arm for the Department of Education is known as FedLoan Servicing, announced that it is exiting the student loan servicing business.  FedLoan Servicing is the only vendor for the Public Service Loan Forgiveness program.  That means all current enrollees in the PSLF will be required to change loan servicers by the time of FedLoan’s exit in December 2021.

Given the abruptness of this announcement, if FedLoan is your servicer, you should take steps to protect your loan payment history BEFORE the change happens.  To protect your loan payment history make sure you take the following steps before December.

  1. Log into your loan servicer’s account.  Print or download all student loan payment records.

  2. While you are on your loan servicer’s account, save copies of all student loan correspondence.

  3. While you are on your loan servicers account, update your contact information to ensure that you receive all notices from your new loan servicers.
  4. Update your Public Service Loan Forgiveness application by certifying your current employment.

  5. Check your bank or credit card statements to monitor your payments and auto-debits.

  6. Monitor your credit report to ensure that your new servicer is not reporting faulty credit information.

  7. Make sure you don’t get scammed in the change. Verify the new student loan servicer after the transfer by logging into the website.