fed loan servicing : If you’ve borrowed federal student loans, the odds are good that you’ve dealt with fed loan servicing, one of the largest federal loan servicers. Run by the Pennsylvania Higher Education Assistance Agency (PHEAA), FedLoan has been a major administrator of repayment, offering forgiveness programs and helping borrowers navigate payment options for years. But as federal student loan servicing contracts shift, many borrowers are wondering what’s next and how to work the system to their advantage.
This article is a thorough guide to FedLoan, covering what services it offers, the controversies it has faced and what borrowers should do next.
What Is fed loan servicing?
The PHEAA has also established fed loan servicing (commonly known as FedLoan) to service the federal student loans on behalf of the U.S. Department of Education. FedLoan’s main goal has been to help borrowers manage and pay off their federal student loans. Its services include:
- Sending billing statements
- Processing payments
- How to handle income-driven repayment plans
- The search for PSLF: Tracking down the number of people who’ve qualified for Public Service Loan Forgiveness
- Assisting with deferment or forbearance periods
When it was at its height, FedLoan managed millions of borrowers’ transactions; it was also the sole servicer for the PSLF program, a crucial point of contact for public sector workers expecting their loans to be forgiven.
Primary Services Provided by FedLoan You are using FedLoan because:
These are the key services that FedLoan offered to those with federal student loans:
Loan Repayment Assistance
FedLoan made standard, graduated and extended repayment plans available. It also enabled income-driven repayment (IDR) options like REPAYE, PAYE, IBR, and ICR. These plans based monthly loan payments on a borrower’s income and family size.
PSLF Tracking on the Road to ZeroINESS 64 65
FedLoan was the sole servicer of borrowers in pursuit of PSLF. This had the effect of making all borrowers applying for PSLF ensure that their loans were serviced by FedLoan. They reviewed Employment Certification Forms and calculated eligible payments.
Forbearance and Deferment
The or disabled borrowers or those who returned to school, FedLoan assisted in applying for deferment or forbearance to stop payments temporarily.
Loan Consolidation Guidance
The consolidation itself took place through StudentAid. gov, FedLoan helped borrowers through the transition and serviced new consolidated loans.
FedLoan Controversies and Criticism
But for all its prominence, FedLoan has drawn its fair share of criticism over the years. Key issues include:
- PSLF Mismanagement: Thousands of borrowers claimed FedLoan mismanaged their PSLF applications. Many were turned away for forgiveness because of mistakes in payment counts or employer eligibility.
- Bad Customer Service: Many readers complained of long waits and contradictory advice from representatives, as well as unaddressed problems.
- Delays in processing: Time and time again, we heard about errors in payment application and income-driven repayment recertification processing delays.
- Lawsuits and Investigations: The Massachusetts Attorney General and other organizations sued PHEAA accusing the company of deceptive practices and borrower harm.
These problems added to mounting pressure for the Department of Education to overhaul its servicing system.
FedLoan Is Going Away: What That Means
In 2021, FedLoan said it would not renew its federal loan servicing contract, which was set to expire in 2022. That has meant that borrowers who had been serviced by FedLoan have had their loans transferred to new servicers. The top substitutes are:
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- Aidvantage
- Nelnet
- Edfinancial
The PSLF program, specifically, is now serviced by MOHELA, in stead of FedLoan.
What to Do If Your Loans Were With FedLoan:
- Verify Your New Servicer: Go to StudentAid. gov to learn who your current servicer is.
- Set up a new account: When you know your new servicer, set up an account on its website to track your loan and payment information.
- Check Your Loan Information: Make sure your balance, payment history, and any PSLF-qualifying payments (if applicable) transferred over.
- Download FedLoan Records: If you haven’t done so already, access your full payment history and PSLF Employment Certification Forms from your FedLoan account (if they’re even available anymore).
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FedLoan was the epicenter of PSLF for years. Even though it’s no longer managing P.S.L.F., many borrowers applying for forgiveness are still in that process. Here’s what to know:
- If you sent PSLF forms to FedLoan, they should have been transferred to MOHELA, the PSLF servicer of record.
- Your qualifying payment count should stay under MOHELA.
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If you believe your payment count is incorrect, contact MOHELA immediately to challenge it or request an updated Employment Certification Form.
- Borrowers should maintain their annual employment certification and periodically check their PSLF status to ensure they remain on track.
How to Reach FedLoan (While Active)
FedLoan has already phased out most affirmation, but for the record, here’s how you would usually get in touch with them.
- Phone: 1-800-699-2908
- Mail: FedLoan Servicing, P.O. Box 69184, Harrisburg, Pa., 17106-9184
- Website: myfedloan. org (now forwards, used to message ‘coming soon’)
If you’re working to resolve a past issue when FedLoan serviced your loans, get in touch with your new servicer or file a complaint with the Federal Student Aid Ombudsman.
Tips for Former FedLoan Borrowers
With FedLoan gone, now borrowers have to step up. Here’s a list to help you keep track of your loans:
Update Contact Information with your new servicer.
- Start a Save All FedLoan Correspondence file so you have documentation if you need it later.
- Your PSLF payment counts and employment certification progress will be tracked.
- Verify IDR Plan Renewal Deadlines and make sure your income is recertified as required.
- Keep an Eye Out for Scams – Scam artists are likely to exploit the transition. Verify emails and phone calls before responding, and confirm that legitimate entities made them.
Conclusion
FedLoan was a big player in the federal student loan world, and its exit marks a new chapter for borrowers. The challenges the organization faced clearly showed that the student loan system needs more transparency, accountability, and better service. Now, with new servicers like MOHELA entering the scene, borrowers must stay informed, double-check their records, and ensure they remain on track for repayment or forgiveness.
Whether you are working toward PSLF or investigating IDR plans, or just trying to keep up on payments, knowing your loan servicer and understanding your rights is essential. The demise of FedLoan could offer the chance for improved servicing — but only if borrowers continue to be vigilant and informed.
