While FedLoan fared 2.5 times better than former loan servicer Navient, the CFPB still received 251 complaints per million customers for FedLoan. This was over twice as much as many complaints as all the other servicers on the list.
All federal loans in the FedLoan portfolio will be split up and transferred to other servicers including EdFinancial, MOHELA, Aidvantage (formerly Navient) and Nelnet.
Bottom Line. Navient is a federal and private student loan servicer and collector. It’s known as one of the largest federal loan servicers in the country, and borrowers can take advantage of its reduced interest rates through auto-pay.
Can you separate myth from fact? Great Lakes, FedLoan Servicing, Navient, and Nelnet are student loan servicers. They’re the connection between you and the lender. For federal student loans, the interest is determined by the Higher Education Act as enacted and amended by Congress.
Is FedLoan servicing good?
Here’s the scoop: FedLoan Servicing is a legit company. It’s one of several student loan servicers contracted by the U.S. Department of Education to handle federal student loans.
Is Nelnet and FedLoan the same?
Nelnet is a student loan servicer (like FedLoan Servicing) that was chosen by the U.S. Department of Education (ED) to service federal student loans. We keep borrowers up-to-date with information about their loans and help them manage the loan repayment process.
Navient was one of the companies that serviced federal student loans by collecting and tracking payments. On Oct. 20, 2021, Navient announced it would end federal student loan servicing after Dec. 31, 2021.
Who is FedLoan transferring to?
The U.S. Department of Education (ED) has transferred the customer service of your federal student loan account from FedLoan Servicing to MOHELA, another member of ED’s federal loan servicer team.
Aidvantage is your new loan servicer
By now, you should have been notified of this change by mail or email from Navient, Aidvantage and the Department of Education.
If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. You may have to pay income tax on any amount that is forgiven.
Navient is a U.S. corporation based in Wilmington, Delaware, whose operations include servicing and collecting student loans. Managing nearly $300 billion in student loans for more than 12 million debtors, the company was formed in 2014 by the split of Sallie Mae into two distinct entities: Sallie Mae Bank and Navient.
Even though hundreds of thousands of Navient borrowers will receive loan forgiveness, millions still won’t. The cancellations are also largely going to accounts that opened during the early 2000s, so if you opened an account with Navient more recently, it’s unlikely that you qualify.
Is Great Lakes a loan servicer?
Great Lakes is a student loan servicer who was chosen by the U.S. Department of Education (ED) to service your federal student loans. We keep you up-to-date with information about your loans and help you manage paying them back. As your servicer, we are your primary point of contact for questions about your loans.
Is Great Lakes still servicing student loans?
Due to the government’s new Next Gen Business Process Operations initiative, Great Lakes and its parent company Nelnet will no longer service federal student loans after December 2020. If Great Lakes is your current loan servicer, The Department of Education will assign you a new loan servicer.
Navient is a private company that the U.S. Department of Education once hired to service its federal loans.