If you’re interested in checking rates, try a company like Earnest or Credible to see what they will offer you. However, as far as the other servicers are concerned, Great Lakes is your best bet for a service provider in the country. If you want to learn how to get in contact with your student loan servicer, you can see this post here. Nelnet Federal loan servicing only has a few service providers, which could be part of the issue at hand. Due to our somewhat limited data, it is difficult to determine exactly which federal student loan servicer is best. Thankfully, it’s not all that difficult of a task to manage. During this process, you can pick out which loan servicer you want to use. This gives them a disappointing total of nearly 612 complaints per million customers. The student can be appointed to any of the existing servicer companies in the United States. The problem with taking our a new Direct Consolidation Loan is that you’ll reset any payments you’ve made with respect to student loan forgiveness (e.g. Working out flexible repayment plans as your ability to pay changes, Allowing you to temporarily halt your autopay payments if you fall on hard times (whether through forbearance or deferment), Offer loan forgiveness for those working in non-profits or the public sector once they meet the requirements, Encouraging buyers to choose forbearance over income-driven repayment (thus accumulating more interest), Not being clear with customers about how to re-enroll in income-driven repayments plans or how to qualify to remove a co-signer. Below are some of the most popular loan servicers for student loans. From there, we extrapolated the number of complaints per million customers to create a fair metric by which to compare the companies. That can be helpful if you have the opportunity to choose a company—when you’re consolidating federal loans, for instance—and you’re looking for the best student loan servicer … FedLoan Servicing (PHEAA) Granite State - GSMR. Keep in mind that Nelnet is a large company and services millions of student loans. I'll... Is WhiteRockLoans.com legit and safe? If you already have federal student loans in repayment, it is likely that the contractor you interact with under the new system will be different than your current loan servicer or servicers. As shown above, Great Lakes performs the best overall when it comes to borrower and school satisfaction, but the worst when it comes to loan performance. Remember how we mentioned that most people have multiple student loans? Your federal loan servicer can help you with every aspect of student loan customer service. Navient may be guilty of more than just bad customer service. CommonBond Review: Is CommonBond Legit for Refinancing Student Loans? Your Student Loan Can Be Transferred to a New Servicer . Remember, the repayment plans discussed here are for federal loans only. Despite this, you might only make one or two payments from your bank account for eight loans. Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service. Servicers also offer a variety of repayment options to make it easier to repay your student loans if you’re having trouble making your monthly payments. you can get a free stock like Apple, Ford, or Sprint when you join (must complete signup). Two companies you may have heard of are no longer servicing federal student loans: Aspire Loan Servicing was awarded a contract as a student loan servicer in 2012 but exited the servicing business in 2015.; Conduent Education ceased servicing federal loans as of Sept. 1, 2019, and all loans that were administered by Conduent have moved to other servicers. But switching federal student loan servicers usually means you go from bad to mediocre at best. Although, in such a large company it’s not uncommon to get the wires crossed on occasion. Nelnet comes next. We rank the best student loan servicers so you know which student loan servicer is best and which one is not in 2020. The CFPB and five state attorneys general all filed lawsuits against Navient at various points in 2017 and 2018. Follow along, step-by-step, as we walk budgeting beginners through the process of budgeting. All Contact your loan servicer to discuss your options and choose a federal student loan repayment plan that’s best for you. Nelnet will service your request, as it’s the only federal student loan servicer that processes disability discharge applications. Who handles all these loans? One of my first questions was: Why am I receiving federal … This money is spread across 45 million borrowers who hold an average loan amount of nearly $30,000. We are your student loan servicer and we have one goal: to help you successfully repay your loans. Laurel Road Review: Is Laurel Road Safe and Legit? Student loan refinancing will get rid of your less-than-stellar servicer altogether and potentially lower your interest rate or get other better loan terms, saving money in the long-term. Next on our list, we have American Education Services (AES) which is operated by the Pennsylvania Higher Education Assistance Agency (PHEAA). And not all student loan service companies are alike. AJ Balois is a Content Manager at BPI-Philam, a bancassurance company, based in the Philippines. Because you’ll never know which of them will manage your loan, it will help to understand more about them: About 90% of all federal student loans today are assigned to one of the Big Four servicers, which are Great Lakes, FedLoan Servicing, Navient, and Nelnet. We’ve already established that none of the student loan servicers do a fantastic job, but some are better than others. It's important to note, when dealing with them, you are most likely speaking to a low-wage call center worker that has no vested interest in your well being or your financial security. Here's how the 9 companies rank from worst to best. With federal student loans, you can’t pick your loan servicer; one is assigned to you. However, this will also require you to pay bigger interest over time. Navient. This is the company you make your student loan payments to. Funding your education using student loans can be pretty useful. We can see that OSLA has the fewest complaints, but we don’t know their total number of borrowers. Once approved, it will assign the student to a servicer. Only time will tell about how the lawsuit turns out, but regardless, we suggest staying away from Navient if at all possible. Great Lakes Educational Loan Services, Inc. HESC/Edfinancial. If you are fed up with the federal loan servicer assigned to you, you have the option to get another servicer. Aside from the fact that it offers low-interest rates, the payment options are also more flexible and manageable. Though you don’t have a lot of freedom to choose your student loan servicer, it’s good to know your options. if you’re pursuing income-based repayment or Public Service Loan Forgiveness (PSLF)). There are only a handful of student loan servicers to choose from and you don’t even get to pick anyway. You can pay off all your smaller loans with one large Direct Consolidation Loan. The numbers are quite impressive compared to the others on our list, as you’ll see. If you’re not pursuing forgiveness, then refinancing probably makes more sense. One common theme was that sometimes representatives gave out the wrong information. Earning money by playing games on your phone sounds like a dream. This means that a student who applies for a federal student loan only needs to contact the Federal Student Aid once and then send an application. They say it’s user-friendly and makes some tasks much easier. Private student loan refinancing allows you to choose your lender and associated servicer. According to the numbers we looked at, AES is trailing Nelnet by quite a bit. How Are Millennial Homebuyers Saving To Buy Their First Home? Unfortunately, the federal government does not allow students to choose their own loan servicers, or the companies responsible in managing the students’ loans. So you took out a federal student loan and now it’s time to pay it back. The Biglaw Investor is helping thousands of lawyers manage and eliminate student loans and make great investment decisions. The federal government? Upon realizing the power of being financially literate, AJ promised to share her knowledge through informative and educational content. With a Direct Consolidation Loan for federal loans, you'll choose your consolidation servicer. This involves taking out private student loans to pay off your government ones. Joshua Holt A practicing private equity M&A lawyer and the creator of Biglaw Investor, Josh couldn’t find a place where lawyers were talking about money, so he created it himself. The good news is that there are few tricks that are available to get loans transferred from one servicer to another. But this app really pays you for playing new games with cash rewards. Getting a federal student loan is a must for most college students. Once assigned, the servicing company will take charge in managing payments, providing options, and giving overall support for the student loan holder. This company serves 6,210,000 customers and had 3,800 complaints registered with the CFPB. The company consistently earns the best reviews out of all the servicing companies. 9 Best Federal Loan Servicers. You’re assigned a servicer by the U.S. Department of Education when you take out your loan. Loan servicers act as an intermediary between you and the federal student loan program that helped you pay for school. As is often the case when an organization doesn’t have to vie for your business, customer service is poor and management is haphazard. Some customers also complained that they received conflicting information about an issue directly from the company itself. It’s also fairly common for borrowers to see federal or private student loans transferred to a new servicer at any point after disbursement, including in repayment. The first thing you need to do is register your FSA ID if you haven’t logged in to a Federal … Most scholarships are merit-based or by achieving specific academic standards, while some are based on financial necessity. Consolidation – This will allow you to apply for a new student loan and combine it with your existing credit. To find out the rankings, we looked at the number of complaints that customers registered with the Consumer Financial Protection Bureau for each company compared to the number of customers they have. Looking for the best private student loans? Pretty impressive! Some people get confused and use these two terms interchangeably, when, in fact, these are two different entities related to federal loans. Unfortunately, three of these servicers are also among the most hated according to complaint statistics. Reddit The PHEAA also operates another large loan servicing agency, FedLoan Servicing, which some consider to offer the worst customer service of the lot, though it has its contenders. The student loan servicers handle the transfer of your account, though it won’t affect your student loan terms. For example, to request forbearance, instead of calling up the customer service line and waiting on hold, you can sign up online and they don’t give you much hassle about proving your need. Your email address will not be published. Don't subscribe They are accusing Navient of: Navient maintains that the lawsuits cite new servicing standards being applied retroactively and they are not at fault. Figuring Out Who Your Student Loan Servicer Is. These are a few of the best ways to make extra money so that you can earn $20 fast... Are you looking for easy websites to make money or ways to make money fast outside of your job? SoFi is a modern finance... Laurel Road Review | Laurel Road promises they can save you thousands of dollars by refinancing your student loan debt. Being assigned to Great Lakes will not be the perfect experience, either. Is it legit, though? Former student loan servicers. Of the four companies we examined (and quite possibly ALL student loan servicers), Navient comes in dead last. However, the company should be making every effort to properly train all its employees. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations. Is there a way to switch to the best of the bad? © Copyright 2020 Student Loans Advice. It will then show a list of your student loan debt that has been registered with the Department of Education (which includes all federal student loans and some private student loans). When you're in the Student Aid portal, you want to look for the "MyAid" tab, which will show you all of your loans and loan servicers. Your email address will not be published. If you’re not happy with Great Lakes as your student loan servicer, you’re kind of out of luck. We are helping to transform the $1.6 trillion dollar student loan debt problem by showing you real rates from America’s community lenders. MOHELA. What’s worse, they don’t really care to do anything about improving it. Americans hold an astonishing $1.56 trillion in student loan debt. With... Are you interested in downloading the best money making apps that pay you real money? We’ll talk more about these options below. She’s been working in the banking and insurance industry for seven years. The numbers are quite impressive compared to the others on our list, as you’ll see. This investing app lets you trade stocks and do everything for free and takes no fees — ever. None of those reasons include you requesting a different one. Looking for a legit CommonBond review? Here is how debt is holding you back,... That moment at the end of your senior year, when the caps are thrown in the air is such a moment of pride. Most people with student loans have more than one loan since you have to reapply for a new loan for each semester that you need one. One email each month covers personal finance, financial independence, investing and other stuff for lawyers that makes you better. There are a few reasons why the Department of Education may reassign you to a different servicer. .Which federal student loan servicer is the best to consolidate student loans? As we mentioned earlier, there are only two ways to change up your loan servicer. Consolidate your federal loans with a Direct Consolidation Loan or refinance your federal student loans with private loans. Better yet, if you join today, A Look at How Millennial Student Debt is Holding You Back, Top Reasons Parents are Struggling with Parent PLUS Loan Repayment, 9 Best Money Making Websites That Pay You Cash. The lender is the entity responsible for providing the credit to the applicant to be used for higher education fees. The information materials and opinions contained on this website are for general information purposes only, are not intended to constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. What You Should Know About Federal Student Loan Servicing. They provide service to the most customers, 8,090,000, and have the least number of registered complaints, 235. The standard 10-year plan is the best way to repay federal loans without incurring additional interest. There are only two ways to get rid of your servicer or switch to a different one yourself. It only received 36 complaints per one million customers last year. If you think you can’t handle federal student loans, you can always consider getting a scholarship. However, you can only do so by choosing any of the two options: Whether you’re assigned to a good-rated or bad-rated loan servicer, it is entirely up to you whether you’ll be able to cover the monthly payments or not. Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service. Student loan debt prevents employees from saving for retirement. Trick #1: Federal Loan Consolidation However, doing this means that you give up your federal student loan protections. 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