Federal Student Loan Servicing
Many studies and researches show that in the United States, nearly 50% college students have taken educational loans to help them go all the way through school to get their desired degrees. As college tuition keeps skyrocketing these days, low-cost federal student loans are really great solutions for both undergraduates and graduates to get their textbook costs, accommodation, meals, general living expenses and other fees covered.
If you are about to enroll in your dream university or college, get prepared in advance to take a federal student loan to make higher education more affordable. But the real problem is that you might don’t know which type of student loans you will be eligible for, how much you are allowed to borrow, or how to get started to apply for the right one. And sometimes you may be also confused by different loan limits and repayment plans.
You find it difficult to compare the interest rates of Stafford and Perkins loans, find out how long the grace period for PLUS loans and calculate the minimum amount you will have to repay during the first two years after graduation. Well, you have too many questions to ask but just don’t know where to get all the answers.
No worries! The federal government not only provides you with a number of loan options, but also offers you valuable resources and helpful guides through a few Federal Student Aid servicers. Though all the federal student loans are regulated by the U.S. Department of Education, your loan servicer might be a private business.
If you don’t know who your loan servicer is, check out on the official site of the National Student Loan Data System (NSLDS): www.nslds.ed.gov. Aside from your loan servicer, you may also find other information on this site, including the types of federal student loans you’ve taken, the total amount you’ve borrowed, disbursed amounts and principal and interest rate, etc.
Generally, your federal student loans servicer will be one of the following:
1. Direct Loan Servicing Center
This loan servicer can be contacted at 800-848-09079. If you are seeking for options on repaying your federal student loans, you can send a mail to:
Direct Loan Payment Center
P.O. BOX 530260
Atlanta, GA 30353-026
And for any question about consolidating your student loans into a single debt, you will need to send your mail to:
Loan Consolidation Center
P.O. Box 242800
Louisville, KY 40224-280
Look up more information on www.dl.ed.gov.
2. Great Lakes Educational Loan Services
Great lakes is also one of a limited number of loan servicers that specialize in providing student financial aid services. It helps millions of students through loan guaranty, application processing, outreach and other student aid programs.
The NSLDS code for Great Lakes is 700581. If you have any questions about your federal student loans, call 800-236-4300 to contact a specialist of Great Lakes. Or you can pay a visit to 2401 International Lane Madison WI 53704-3192 to talk with a consultant.
More details are available on www.mygreatlakes.org.
3. Fedloan Servicing (PHEAA)
Established to support the U.S. Department of Education and aimed to help college students obtain low-rate loans owned by the federal government, Fedloan boasts easy and convenient ways for you to manage your federal student loans. On its site, you can access your account, make a payment and check payment plans quickly.
Its NSLDS code is 700579 and you can call 800-699-2908 to learn more about how to choose a federal student loan that will work best for you. If sending a mail is more preferred for you, keep in mind the address:
P.O. Box 69184
Harrisburg, PA 17106-918
You are likely to find out answers for most of your questions on www.myfedloan.org.
[templatic_contentbox type=”download” title=””] Other organizations that are approved by the Department of Education to serve students taking federal direct loans include: [/templatic_contentbox]
- Student Loan Servicing Center (ACS)
- Nelnet Educational Planning & Financing
- Sallie Mae Department Of Education Loan Services
- CornerStone Education Loan Service
- Ed Financial Services
They also have highly trained and experienced customer service representatives to help you explore the best federal student loan options, fully understand the differences on interest rates and repayment terms between different types of loans, manage your money responsibly and build a solid financial future.
But notice that your loan servicer might be changed, and in some cases, you might borrow from more than one federal loan servicer. Normally, for those who take a federal direct loan, the servicers are not likely to change during the life of the loan. And related information can be easily accessed through the site of NSLDS.
But if you’ve taken a federally serviced loan, be sure to check out the latest information on its official site and contact your servicer on time to avoid split servicing. In the case that you have more than one lender, you will be required to transfer other parts of your federal student loans to the designated servicer.
For instance, if you take both federal direct loans and PUT loans, you will have to transfer your direct loan to the servicer who holds your PUT loans. Those, who newly get approved for originated direct loans, are likely to have the loans automatically assigned to the servicers responsible for their federally owned student loans.
Indeed, you can receive assistances from your loan servicers and you will find all kinds of resources on their sites, making it much easier for you to make an informed choice when faced with all these federal student loan options.
However, you are strongly recommended to equip yourself with a few useful tips to ensure a hassle-free application process and avoid defaulting on your repayment.
Do remember to figure out the following things before you decide which federal student loan is ideal for you:
- the full amount of the loan;
- interest rate and since when it will accrue
- additional fees and other charges
- the time your student loan will be disbursed
- total amount of your debt – both principal and interest cost
- when should you start to make repayment