Federal Student Loans Managed By FedLoan (PHEAA) are transferred in stages to several other services.
The transfers began last fall but the process is still ongoing. Transfers do not affect loans. They will still be subject to the same terms, conditions, interest rates, loan release or forgiveness programs and repayment plans available.
Effective immediately, there is a temporary suspension of payment and 0% interest in place. The transfer doesn’t change that.
The payment pause is scheduled to end on August 31, 2022. According to CBSEducation Secretary Miguel Cardona said in June that another extension of the moratorium was still possible.
“I now have no information to share with you on when this will end or conversations regarding when this is going to be lifted,” Cardona said. “I know we have a date, and it might be extended. Or it could be that it starts there. But what I will say is that our borrowers will have adequate notice.
There has been no official decision on general student loan relief. According to CNET, the student loan freeze has halted payments and interest for 35 million Americans — and collection efforts against 7 million borrowers currently in default.
What to expect when your loan is transferred
When student loans are transferred, it simply means that another service will take care of the billing.
Here’s what officials say you should expect during the process:
You will receive an e-mail or letter from your appointed repairer informing you of the transfer.
You will receive a welcome letter from the new servicer once the new servicer has received your loans. This notice will provide you with the contact details of the new repairer and inform you of any action you may need to take.
All of your loan information will transfer from your assigned service agent to your new service agent, but you may only be able to see information online that covers the period since your new service agent took over your loans. .
There will be no change in the terms of your loans.
Your old loan manager and your new loan manager will work together to ensure that any payments you make during the transfer process are credited to your loan account with the new loan manager.
After receiving the welcome letter from your new repairer, you should do the following:
Start sending your loan payments to your new service agent. If you use a bank or bill payment service to make your loan payments, update the contact information for the new servicer with the bank or bill payment service.
Follow the new repairer’s instructions to create an online account so that you can more easily communicate with the new repairer and keep track of your loan account.
List of federal student loan servicers
To find out who your loan manager is, visit your account dashboard and scroll down to the “My Loan Officers” section.
Or, you can call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
If your repairer was Granite State, you were transferred to Edfinancial
If your agent was Navient, you have been transferred to Aidvantage.
If your agent was FedLoan, you will be or have been transferred to MOHELA, Aidvantage (loans previously managed by Navient), Edfinancial or Nelnet.
|FedLoan Service (PHEAA)||myfedloan.org||1-800-699-2908|
|Great Lakes Educational Loan Services, Inc.||mesgrandslacs.org||1-800-236-4300|
|Default resolution group||myeddebt.ed.gov||1-800-621-3115 (TTY: 1-877-825-9923 for the deaf or hard of hearing)|
Default borrowings get a ‘fresh start’
Good news for student borrowers who were in default.
According a statement from the US Department of Educationtheir accounts will be restored to “good standing”.
Transferred utility loan forgiveness
Starting this month, Public Service Loan Forgiveness (PSLF) borrowers will transfer from FedLoan to MOHELA.
PSLF borrowers will receive notifications as their account is transferred. They will receive a notice at least 15 days before the transfer and a welcome notice from MOHELA once the transfer is complete.
PSLF discharges for borrowers who meet the eligibility requirements will continue to occur during the transfer period. If your loans are canceled during the transfer period, you will not be included in the transfers.
If you submit a PSLF form for the first time after May 1, 2022, your form will be sent to MOHELA and processed after July 1, 2022.
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