Federal Student Loan Servicers
Federally-owned loans are Title IV loans that the Department of Education (the Department) owns and services. The loans that currently fall into this category are as follows:
- Direct Loans-These loans are made by the Department under the William D. Ford Federal Direct Loan (Direct Loan) Program. The Department services the loans originated and disbursed by schools that participate in the Direct Loan Program. Upon "booking" of a Direct Loan, the Department corresponds with the borrower about the servicing of his or her loan.
- On March 21, 2010, the U.S. House of Representatives passed the The Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872) by a vote of 220-211. This bill makes major changes in several federal student aid programs AND mandates that, effective July 1, 2010, all federal student loans (Stafford, PLUS, and Grad PLUS) will be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, is eliminated effective June 30, 2010.
- FFEL Purchased Loans – These loans are made under the Federal Family Education Loan (FFEL) Program by FFEL lenders and subsequently purchased by the Department. Through methods commonly referred to as a "PUT" by FFEL loan holders and the Department, the Department becomes the owner of the loan and assumes all servicing responsibilities for the purchased loans. Upon purchase of a loan by the Department, both the prior FFEL loan holder and the Department correspond with the borrower about the purchase and servicing of his or her loan. These loans were purchased by the Department as part of the Ensuring Continued Access to Student Loans ("ECASLA") legislation . The Department contracted with the following companies to assist with the servicing of these loans.
- NOTE:Due to the nature of the FFEL Purchased Loan process, the assignment of a borrower’s federally-owned loans to the same servicer has not automatically occurred for all borrowers. In time, assignment of borrower’s federally-owned loans to the same servicer will become standard operating procedure. When this does not occur automatically, the Department will work to resolve situations in which a borrower’s federally-owned loans are assigned to two or more federal loan servicers. Resolution will involve transferring the borrower’s loans from one servicer to another.
New Federal Student Loan Servicers
Department of ED/ Federal Loan Servicing (formerly PHEAA) - National Student Loan Data System (NSLDS) Servicer Code 700579 www.myfedloan.org Customer service (borrowers) 800-699-2908
- Additional Information for Borrowers - Web site provides students with real-time access to manage their account information with FedLoan Servicing. Through this site, they are able to:
- Make payments
- Establish direct debit
- Update their demographic information
- YouCanDealWithIt.com is their Web site with tools to assist students with financial decisions. Topics include: money management, student loan repayment options, budgeting, credit card counseling, etc.
Department of ED/ Great Lakes Loan Servicing - NSLDS Servicer Code 700581 - www.mygreatlakes.org - Customer Service (borrowers): 800-236-4300
- Additional Information for Borrowers- inancial literacy information is available online. Financial IQ helps borrowers make smarter choices with money management, spending, saving and credit.
Department of ED/Nelnet - NSLDS Servicer Code 700580 - www.nelnet.com - Customer Service (borrowers) 866-486- 4722
- Additional Information for Borrowers- Web site offers repayment plan information, other financial literacy information, and a "priority of solutions" used to determine eligibility for deferments, entitlements, and/or other options for borrowers who experience difficulty making payments
Department of ED/Sallie Mae - NSLDS Servicer Code 700578 - www.salliemae.com - Customer Service (borrowers) 800-722-1300
- Additional Information for Borrowers: SallieMae.com offers borrowers a variety of tools:
- ManageYourLoans (MYL) allows borrowers 24/7 access to manage their accounts and is updated real time and/or nightly.
- BeDebtSaavy teaches budgeting for college, responsible borrowing, credit score management, credit card debt pit falls, etc.
- Borrowers needing technical assistance with online access can call Customer Service.
- Tips on how to help borrowers avoid default can be found at Avoiding Loan Default
Aspire Resources, Inc. - 6775 Vista Drive - West Des Moines, IA 50266 - (888) 902-6077
Cornerstone - P.O. Box 14512 * Salt Lake City, UT 84114-5121 * Toll Free: (800) 663-1662 * Fax: (801) 366-8400
Educational Services of America, Inc. (Edsouth Services) - Edfinancial Services * P.O. Box 36008 *
Knoxville, TN 37930-6008 * Fax: 865-692-6348 * Fax: 865-692-6349
Granite State - PO Box 9560 * Manchester, NH 03108-9560 * Phone: 800-719-0708
Fax: 603-227- 5401
Missouri Higher Education Loan Authority (MOHELA) - Local 636.532.0600 * Toll Free 888.866.4352 * TDD 636.532.5189
Federal Student Loan Consolidation Programs
Federal Student Loan Consolidation Programs have been popular in recent years. With all of the changes in the federal student loan programs during the past few years, we want to encourage students to utilize this program so that all of their loan accounts are consolidated with one servicer.
A Cautionary Tale
Updated April 11, 2012