FedLoan Servicing Review: FedLoan Servicing is a federal student loan servicer that was established by the Pennsylvania Higher Education Assistance Agency (PHEAA) in order to support the U.S. Department of Education’s ability to service student loans that have been owned by the federal government.
Many of the graduates must have known about FedLoan Servicing very well as it has been helping them to make repayments on their loans, ask for help, as well as even potentially get student loan forgiveness.
The U.S. Department of Education (ED) instigates federal student loans, but it’s loan services such as FedLoan Servicing that actually handle all of the repayments. This is the company that you’ll actually be paying.
Together with Nelnet and Navient, it is considered to be one of the big three for-profit federal student loan servicing companies. There was a fourth for-profit servicer, Great Lakes Educational Loan Services Inc., but Nelnet later acquired it in the year 2018 (February).
There are also many non-profit federal student loan servicing companies in the market, but on the other hand, they only serve a small percentage of the loans of the borrowers.
PHEAA conducts its student loan servicing operations for federally-owned loans as FedLoan Servicing. An additional arm of PHEAA — AES — guarantees as well as services a great number of Federal Family Education Loan (FFEL) Programs along with private student loan products for lending partners.
MyFedloan is a nonprofit organization that is run by the Pennsylvania Higher Education Assistance Agency (PHEAA). The Federal Government manages its Student Loans through the network of Loan Servicers. The system is set to change as the Department of Education rolls out its new Nextgen platform. Beyond information about Student Loans, MyFedLoan Portal also has various useful tools. The website has a section which is dedicated to Federal Student Loan Basics, including an overview of your repayment options, loan forgiveness, discharge, and Loan consolidation.
Basics of FedLoan Servicing Payment
FedLoan Servicing stands apart from the additional federal student loan servicing companies for the reason that it was selected to help as well as manage the Public Service Loan Forgiveness (PSLF) program. Borrowers on the other hand who submit an Employment Certification form — which the Department of Education directs you to do as soon as possible if you’re in view of PSLF — will have their federal loans transferred to FedLoan Servicing.
In spite of being based in Philadelphia, PHEAA and FedLoan Servicing function all across the United States. The main objective of the organization is to help students pay off their student loans, as well as it also offers a variety of services in order to help you do this. It also applies to students who took out one or more of the following loans, which are as follows:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- Direct Consolidation Loans
One can also make use of the National Student Loan Data System in order to check whether or not FedLoan Servicing is your designated loan servicer or not.
How Can FedLoan Servicing Help You?
- You can Repay Your Student Loans through Myfedloan Servicing.
- You can easily Access Your Account, manage your Online Payments, Update Account Information, and View Billing and Interest Statements.
- You can see if You Qualify for Loan Discharge, Teacher Loan Forgiveness, PSLF, and Much More.
- You can Apply for Financial hardship Programs, Federal Loan Consolidation, Reduced Payment, and More.
FedLoan Servicing Repayment
Unless borrowers select extra options, loans serviced by FedLoan Servicing are registered in the standard 10-year repayment plan. In addition, All Direct PLUS Loans are also eligible for income-driven repayment apart from Direct PLUS Loans made to parents.
One must also take note that not all FFEL Program loans are eligible for income-driven repayment. But, on the other hand, some may be eligible if comprised in a Direct Consolidation.
FedLoan Servicing provides many options for repayment, but it depends on the eligibility, these options are as follows:
- Pay As You Earn
- Income-Based Repayment
- Income-Contingent Repayment
- Standard Repayment
- Graduated Repayment
- Extended Fixed Repayment
- Extended Graduated Repayment
- Income-Sensitive Repayment
FedLoan Servicing borrowers are also eligible to enroll in Direct Debit, which is a free service that lets you a 0.25 percent interest rate reduction for approved applications that settle to automatic withdrawal every single month.
At the same time, Borrowers can also assign extra funds to loans of their selection in order to target repayment for a quick payoff. Payments, on the other hand, can be made online, via smartphone, or by mail.
FedLoan Loan Eligibility
FedLoan Servicing services comprises two main types of federal loan programs that are FFELP and the William D. Ford Federal Direct Loan Program loans.
FedLoan Servicing services FFELP loans were basically sold as well as transferred due to the legislation known as the Enduring Continued Access to Student Loans Act (ECASLA), under which the U.S. Department of Education has offered to buy FFELP loans from third-party lenders.
FedLoan on the other hand also services direct loans that are provided directly through the U.S. Department of Education as well as don’t include third-party lenders.
Is FedLoan Servicing Legit or a scam?
It is the most basic and important question that everyone would want to know whether FedLoan Servicing is a legitimate company or not. The answer is very simple as it is yes. FedLoan Servicing is one of a limited number of organizations that have been approved by the U.S. Department of Education in order to service these loans and says it’s dedicated to supporting borrowers with easy as well as suitable ways to accomplish their repayments.
FedLoan Advantages and Drawbacks
- FedLoan offers lots of Repayment Options
- FedLoan Servicing follows the rules strictly
- It is very easy and simple to use
- It also offers additional Benefits and Special Programs
- There have been up to 500 complaints posted about FedLoan Servicing on the Better Business Bureau site in the last three years.
- There’s a lack of Information
- Customer services are not up to the mark.
Overall, FedLoan is one of the best legitimate loan service providers. It provides you with a variety of services that everyone would love to experience. However, FedLoan Servicing has been also involved in some scandals and controversies and there was even a FedLoan Servicing lawsuit case against FedLoan Servicing filed by Massachusetts Attorney General Maura Healey.
Just because of its scandal and other issues, FedLoan reviews are often negative and mostly feature complaints and criticisms. Regardless of this, it is still important to note that FedLoan is a legitimate loan servicer. It is also vital to be aware of all the different services as well as features of FedLoan so that you’re best prepared to have an optimal experience and not have to file any complaints of your own.
In this article, we have discussed many things about FedLoan to give you a clear picture of this great loan service provider. Hopefully, this information will be beneficial for you.