If you have a federal student loan, you’ve probably crossed paths with a student loan servicer — the company that helps you manage your loan by collecting your payments and providing tools to help you explore repayment options. These servicers are crucial links in the student loan ecosystem, serving as intermediaries between borrowers and the U.S. Department of Education. Knowing how federal student loan servicers work, and what some of your best options to manage your loans (and avoid potential mishaps) are, is also crucial.
What Are Student Loan Servicers?
Student loan servicers are private companies that the U.S. Department of Education hires to manage federal student loans. Their duties consist of:
- Sending billing statements
- Processing payments
- Explaining repayment plans to borrowers
- Helping with deferment or forbearance
- Management of petition for forgiveness and discharge
They don’t hold the loan itself, but they are your main point of contact for anything revolving around the status or process of paying back your loan.
Federal Student Loan Servicer List (2025)
Today, the Department of Education partners with a handful of federal student loan servicers. The primary servicers (as of 2025) are:
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What Is the MOHELA (Missouri Higher Education Loan Authority))?
Manages most Public Service Loan Forgiveness (PSLF) accounts.
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Edfinancial
Know for customer service support and assisting with repayment plans.
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Nelnet
Provides plenty of resources for loan management and repayment.
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Aidvantage
Acquired numerous loans previously serviced by Navient.
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OSLA Servicing (Oklahoma Student Loan Authority)
Smaller servicer with good borrower reviews.
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HEA Higher Education Assistance Agency
Caters to borrowers in certain states and areas.
It’s worth noting that some servicers have left the business in recent years, including Navient, FedLoan Servicing and Great Lakes, because of changes in their contracts and federal oversight.
How to Figure Out Who Your Servicer Is
Your student loan servicer is assigned to you when your loan is disbursed. How to determine who your servicer is:
- Go to your Federal Student Aid (FSA) account.
- You can see your loan details on your dashboard.
- Under each loan, you will find the name and contact information for your servicer.
Updating your contact information is critical to ensure that your servicer can contact you about payment due dates or important changes to your loan.
What Do Federal Student Loan Servicers Do?
While all servicers do essentially the same work, the borrower experience can be very different from one company to another. Here’s what is mandated (by federal law) that all federal loan servicers offer:
Monthly Charges and Payment Administration
Servicers provide billing statements, and process payments and apply payments, as well as automatic payment options, which will cut your interest rate a quarter of a percentage point.
Repayment Plan Assistance
They can also potentially help you enroll in IDR plans, extended repayment, or graduated repayment plans depending on your financial circumstances.
Forbearance and Deferment Administration
If you are experiencing financial difficulty, your loan servicer can help you put your payments on hold through deferment (it may not accrue interest) or forbearance (interest accrues).
Loan forgiveness program guidance
Servicers help monitor eligible payments for things such as forgiveness programs including:
- Forgiveness with Public Service Loan Forgiveness (PSLF)
- Teacher Loan Forgiveness
- IDRFForgiveness Income-Driven Repayment Forgiveness of Loans If you need help repaying your loans and are not eligible for a public service loan forgiveness program, consider an income-driven repayment plan.
Loan Consolidation Support
They assist borrowers in understanding the benefits and drawbacks of consolidating multiple federal loans into one.
Dispute Resolution
If you think there is an error with your loan account, your servicer must investigate and reply to disputes promptly.
How Can Borrowers Be Stopped From Getting Thrown Around Servicers?
For all of the power they exercise, however, student loan servicers are far from perfect and have faced criticism over the years for a number of issues:
- Bad information: Borrowers often gripe that they’re given confusing and contradictory instructions.
- Delays and errors: Mistakes in payment processing — and processing forgiveness — can be a problem.
- Insufficient guidance: Some servicers do a terrible job letting borrowers know about income-driven plans or forgiveness.
- Customer service headaches: Long waits, unhelpful answers, and a revolving door of who you speak to can sour borrowers.
For these reasons, it’s important to document all communication with your servicer, keep copies of important paperwork and follow up with regular regularity if your problems are not resolved.
If You’re Not Happy With Your Servicer
If your student loan servicer is giving you trouble, here are a few steps to consider:
- Ask for a Manager or to Escalate the Call: Ask to speak with a supervisor or to escalate the issue.
- File a Complaint: Lodge a complaint with the Federal Student Aid Ombudsman Group through studentaid. gov/feedback.
- File with the CFPB: You may also be able to file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance. gov.
- You don’t get to pick your federal loan servicer, but consolidation or if you enroll in a forgiveness program can move your loan to another company.
Making the Most of Your Relationship With Your Servicer
To avoid any hassles repaying loan, you could follow the below best practices:
- Sign up for Autopay: You will not only be guaranteed on-time payments, but many lenders will also shave off a small percentage of your interest rate.
- Begin Exploring Repayment Options Now: Don’t wait till you’re in trouble — switch plans if your income changes.
- Recertify Income Annually: If you’re on an IDR plan, update your income each year to stay eligible.
- Report: If you get an email or letter, respond and ask questions if you’re not sure of the issue.
The Next Customer for Student Loan Servicers
The Education Department is moving to revamp the system for servicing federal loans. There’s a new campaign called “Next Gen FSA” that’s designed to modernize the loan servicing experience and make it easier by:
- Harmonizing the user interface through StudentAid. gov
- Improvements in the transparency of the monitoring of reimbursements
- Better borrower communication
For now, as these changes continue to play out, borrowers should ensure they remain informed as it pertains to policy tweaks — specifically changes to loan forgiveness and repayment plans.
Final Thoughts
Federal student loan servicers are essential to navigating your student debt, but the onus is on you as the borrower to remain involved and proactive. Once you know how your servicer operates, what your rights are, and after you have consistently documented everything, you can work your way through the student loan system with a lot more confidence. While there are certainly obstacles, working with tools and resources offered by your loan servicer can keep you on the path to successful repayment, and maybe even loan forgiveness.
