What Happens If Your Student Loan Servicer Changes?

The College Investor Audio Show · Sep 30, 2020 · 7m

The Department of Education issues Federal loans to students, but it doesn’t work with borrowers directly. Instead, it hires outside loan servicers to shoulder the administrative burden of educational debt. And those loan services can change from time to time.

In fact, it was recently announced that loans from MOHELA will be transferred to other loan servicers. This isn't a new concept - it happens all the time.

The Federal Student Aid office currently works with 5 main loan servicers, and has worked with eighteen loan servicing companies. Borrowers typically work with one loan servicing…