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- 1 What Is a Student Loan Servicer? Most federal student loans today are direct loans. This means that the money comes straight from the Department of Education, rather than a private lender acting on behalf of the federal government. However, the Department of Education can’t manage these student loans all by itself. In order to make sure that borrowers are paying back their student loans and having their requests and comments processed in a timely manner, the Department of Education works with several companies known as “student loan servicers.” Student loan servicers are responsible for collecting student loan payments from borrowers and managing the student loan debt under their care. Here are some services that your student loan servicer will provide: Managing borrower information. Student loan servicers will process changes to personal information, such as name, address, or phone number after you request them. Repayment plans. Processing requests to move your loan over to a new repayment plan, such as an income-driven repayment plan that you might use for student loan forgiveness. Student loan consolidation. Your student loan servicer will handle your requests to consolidate your student loans. It’s important to note that your student loan servicer is the only entity authorized to act on these things for you, and they will provide these services free of charge. If someone else contacts you saying that they can change your repayment plan or consolidate your loans for a lower interest rate, then odds are that you are being targeted by a student loan scam. Who Is My Student Loan Servicer?
- 2 Federal Student Loan Servicing Companies: Who They Are & How To Contact Them
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