Out of their 6,150,000 customers, 635 filed complaints with the CFPB. All For example, to request forbearance, instead of calling up the customer service line and waiting on hold, you can sign up online and they donât give you much hassle about proving your need. For now, letâs look at how 4 student loan servicers stack up. This involves taking out private student loans to pay off your government ones. Saving thousands of dollars on your student loan debt seems ideal, and that's just what LendKey promises. They do this in a few ways: However, it’s not all rainbows and unicorns. Despite this, you might only make one or two payments from your bank account for eight loans. Earning money by playing games on your phone sounds like a dream. It will take discipline maintaining a good relationship with money, so you can dictate what it can do for you, and not the other way around. Student loan refinancing will get rid of your less-than-stellar servicer altogether and potentially lower your interest rate or get other better loan terms, saving money in the long-term. Better yet, if you join today, A Look at How Millennial Student Debt is Holding You Back, Top Reasons Parents are Struggling with Parent PLUS Loan Repayment, 9 Best Money Making Websites That Pay You Cash. If youâre unhappy with the loan servicer you have, there are only three ways to get a new one: 1. The student should then remain in constant communication with his federal loan servicer to work with him in providing servicing plans, helping in loan consolidation, and assisting in different tasks related to the loan. To make matters worse, customers claim that the customer service department at AES has been less than helpful when trying to resolve the issues. With federal student loans, you canât pick your loan servicer; one is assigned to you. Being assigned to Great Lakes will not be the perfect experience, either. It’s an option that lowers the monthly payments but extends the loan term. Need to make 20 dollars fast? Even if you could switch, there isnât necessarily a better option to switch to. OSLA Servicing. This means that a student who applies for a federal student loan only needs to contact the Federal Student Aid once and then send an application. Aside from the Big Four, there are also five nonprofit servicers: Cornerstone, Granite State, HESC, MOHELA, and OSLA. During this process, you can pick out which loan servicer you want to use. They provide service to the most customers, 8,090,000, and have the least number of registered complaints, 235. The standard 10-year plan is the best way to repay federal loans without incurring additional interest. Though you donât have a lot of freedom to choose your student loan servicer, itâs good to know your options. Aside from the fact that it offers low-interest rates, the payment options are also more flexible and manageable. Is it legit, though? Next on our list, we have American Education Services (AES) which is operated by the Pennsylvania Higher Education Assistance Agency (PHEAA). Once approved, it will assign the student to a servicer. Itâs also fairly common for borrowers to see federal or private student loans transferred to a new servicer at any point after disbursement, including in repayment. However, you can only do so by choosing any of the two options: Whether you’re assigned to a good-rated or bad-rated loan servicer, it is entirely up to you whether you’ll be able to cover the monthly payments or not. As we mentioned earlier, there are only two ways to change up your loan servicer. This money is spread across 45 million borrowers who hold an average loan amount of nearly $30,000. However, not all federal student loans qualify for consolidation. Of the four companies we examined (and quite possibly ALL student loan servicers), Navient comes in dead last. Don't subscribe This program has been rife with problems since â¦ If you already have federal student loans in repayment, it is likely that the contractor you interact with under the new system will be different than your current loan servicer or servicers. Earn up to $50 per survey with one of the highest-paying survey sites on the web. However, the company should be making every effort to properly train all its employees. Although there's not much you can do to control your servicer, some are much worse than others. Navient, FedLoan Servicing, and Nelnet received 1,027 complaints per million serviced accounts during the previous year. Replies to my comments Some customers complain that nothing seems to be resolved when dealing with Nelnetâs customer service and representatives donât seem to know what theyâre talking about. Looking for a legit CommonBond review? You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations. According to the numbers we looked at, AES is trailing Nelnet by quite a bit. This leaves them significantly worse than Great Lakes with 103 complaints per million customers. The lender is the entity responsible for providing the credit to the applicant to be used for higher education fees. This is a big issue as it can negatively affect your credit score, potentially by a lot depending on the error. Meanwhile, a servicer is a private company tapped by the US government to manage the existing student loans of students. However, this will also require you to pay bigger interest over time. With... Are you interested in downloading the best money making apps that pay you real money? Weâve already established that none of the student loan servicers do a fantastic job, but some are better than others. If youâre not happy with Great Lakes as your student loan servicer, youâre kind of out of luck. We’re ensuring thousands of borrowers are making educated financing choices and putting themselves in the best position to repay their student loans. It only received 36 complaints per one million customers last year. This is the company you make your student loan payments to. The CFPB and five state attorneys general all filed lawsuits against Navient at various points in 2017 and 2018. I'll... Is WhiteRockLoans.com legit and safe? Former student loan servicers. Servicers also offer a variety of repayment options to make it easier to repay your student loans if youâre having trouble making your monthly payments. For that reason, you likely don’t want to consolidate your federal student loans. Well, customers generally like the Great Lakes website. The information materials and opinions contained on this website are for general information purposes only, are not intended to constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. Trick #1: Federal Loan Consolidation Some people get confused and use these two terms interchangeably, when, in fact, these are two different entities related to federal loans. From there, we extrapolated the number of complaints per million customers to create a fair metric by which to compare the companies. Truebill delivers on its promise to save you money effortlessly. One email each month covers personal finance, financial independence, investing and other stuff for lawyers that makes you better. She’s been working in the banking and insurance industry for seven years. Higher Education Services Corporation (HESC) or EdFinancial Services, Utah System of Higher Education/Cornerstone, Higher Education Loan Authority of the State of Missouri (MOHELA), maintaining a good relationship with money. Private student loan refinancing allows you to choose your lender and associated servicer. Most of that attention is rightly... Life would have been so easy if there was a personal finance wiki or magic formula to control the money flow and decide on... Learning how to budget in college shouldn't be hard. If you’re interested in checking rates, try a company like Earnest or Credible to see what they will offer you. Navient. When you're in the Student Aid portal, you want to look for the "MyAid" tab, which will show you all of your loans and loan servicers. Here is an insightful guide on all... Millennial student debt is one of the most likely things to hold you back in life. They provide service to the most customers, 8,090,000, â¦ Borrowers can find their federal loan servicer by logging into your dashboard at StudentAid.gov. Who handles all these loans? This investing app lets you trade stocks and do everything for free and takes no fees — ever. Navient may be guilty of more than just bad customer service. If you want to learn how to get in contact with your student loan servicer, you can see this post here. So you took out a federal student loan and now itâs time to pay it back. Is it legit, though? So what if youâre stuck with the worst of the worst? Getting a federal student loan is a must for most college students. SoFi is a modern finance... Laurel Road Review | Laurel Road promises they can save you thousands of dollars by refinancing your student loan debt. He is always negotiating better student loan refinancing bonuses for readers of the site or finding honest companies that provide student loan advice for a fair price. You may have seen news about the Navient lawsuit, and that they are facing six lawsuits alleging illegally cheating borrowers out of repayment rights through shortcuts and deception. The student loan servicers handle the transfer of your account, though it wonât affect your student loan terms. Because you’ll never know which of them will manage your loan, it will help to understand more about them: About 90% of all federal student loans today are assigned to one of the Big Four servicers, which are Great Lakes, FedLoan Servicing, Navient, and Nelnet. FedLoan Servicing (PHEAA) Granite State - GSMR. Consolidation – This will allow you to apply for a new student loan and combine it with your existing credit. if you’re pursuing income-based repayment or Public Service Loan Forgiveness (PSLF)). Successful financial management cannot be achieved right away—it takes constant self-control to make paying off your loan a priority. Public Service Loan Forgiveness may apply to certain federal loans in limited circumstances. Some customers also complained that they received conflicting information about an issue directly from the company itself. Whatâs worse, they donât really care to do anything about improving it. Loan servicers act as an intermediary between you and the federal student loan program that helped you pay for school. Undergraduate, graduate and parent loans can be refinanced, as well as loans for MBA programs, and for law, dental and medical school. Pretty impressive! Below are some of the most popular loan servicers for student loans. Only time will tell about how the lawsuit turns out, but regardless, we suggest staying away from Navient if at all possible. They say itâs user-friendly and makes some tasks much easier. Two companies you may have heard of are no longer servicing federal student loans: Aspire Loan Servicing was awarded a contract as a student loan servicer in 2012 but exited the servicing business in 2015.; Conduent Education ceased servicing federal loans as of Sept. 1, 2019, and all loans that were administered by Conduent have moved to other servicers. Is there a way to switch to the best of the bad? Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service. Upon realizing the power of being financially literate, AJ promised to share her knowledge through informative and educational content. Saving thousands of dollars on your student loan debt seems ideal, and that's just what CommonBond promises. Nelnet scores the best on loan performance, but sits in the middle of the pack on the satisfaction surveys. Youâre assigned a servicer by the U.S. Department of Education when you take out your loan. The federal government? One common theme was that sometimes representatives gave out the wrong information. Itâs even possible that they have more than one servicer, meaning they have to make more than one payment each month. Unfortunately, three of these servicers are also among the most hated according to complaint statistics. One of the big downsides to federal loans is dealing with these servicers. We’re on a mission to help every lawyer achieve financial independence. There are only two ways to get rid of your servicer or switch to a different one yourself. Great Lakes Educational Loan Services, Inc. HESC/Edfinancial. Education Loan Finance, also known as ELFI, is a national student loan refinancing program for federal and private student loans from Tennessee-based SouthEast Bank. Nope. It's important to note, when dealing with them, you are most likely speaking to a low-wage call center worker that has no vested interest in your well being or your financial security. We can see that OSLA has the fewest complaints, but we donât know their total number of borrowers. MOHELA. Nelnet If you’ve... Millennials’ interest, and their perceived lack of interest in homebuying, has drawn many headlines over the last few years. Nelnet will service your request, as itâs the only federal student loan servicer that processes disability discharge applications. Laurel Road Review: Is Laurel Road Safe and Legit? Once assigned, the servicing company will take charge in managing payments, providing options, and giving overall support for the student loan holder. Unfortunately, three of these servicers are also among the most hated according to complaint statistics. The numbers are quite impressive compared to the others on our list, as youâll see. .Which federal student loan servicer is the best to consolidate student loans? The company consistently earns the best reviews out of all the servicing companies. To find out the rankings, we looked at the number of complaints that customers registered with the Consumer Financial Protection Bureau for each company compared to the number of customers they have. Contact your loan servicer to discuss your options and choose a federal student loan repayment plan thatâs best for you. With a Direct Consolidation Loan for federal loans, you'll choose your consolidation servicer. Federal loan servicing only has a few service providers, which could be part of the issue at hand. If you’re not pursuing forgiveness, then refinancing probably makes more sense. Keep in mind that Nelnet is a large company and services millions of student loans. Follow along, step-by-step, as we walk budgeting beginners through the process of budgeting. Your Student Loan Can Be Transferred to a New Servicer . Notify me of follow-up comments by email. Federal student loan interest rates, which are set by Congress rather than the Department of Education, are at their lowest levels in years for the upcoming 2020-2021 school year. Looking for the best private student loans? Student Loans Advice can help you manage your student loans smarter and earn more money to pay them off. These are a few of the best ways to make extra money so that you can earn $20 fast... Are you looking for easy websites to make money or ways to make money fast outside of your job? This investing app lets you trade stocks and do everything for free and takes no fees — ever. You can check with the college you are enrolling in, state and federal agencies, foundations, religious and education groups, or even your parents’ employers for opportunities. Here is how debt is holding you back,... That moment at the end of your senior year, when the caps are thrown in the air is such a moment of pride. As is often the case when an organization doesnât have to vie for your business, customer service is poor and management is haphazard. The PHEAA also operates another large loan servicing agency, FedLoan Servicing, which some consider to offer the worst customer service of the lot, though it has its contenders. Nelnet comes next. The problem with taking our a new Direct Consolidation Loan is that you’ll reset any payments you’ve made with respect to student loan forgiveness (e.g. However, doing this means that you give up your federal student loan protections. Most scholarships are merit-based or by achieving specific academic standards, while some are based on financial necessity. If you are considering this option, be sure to do ample research and call the private lender if necessary. If youâre not on top of things, you may not even know who your student loan servicer is. About 90% of all federal student loans today are assigned to one of the Big Four servicers, which are Great Lakes, FedLoan Servicing, Navient, and Nelnet. It will then show a list of your student loan debt that has been registered with the Department of Education (which includes all federal student loans and some private student loans). This gives them a disappointing total of nearly 612 complaints per million customers. The Biglaw Investor is helping thousands of lawyers manage and eliminate student loans and make great investment decisions. Your email address will not be published. Letâs find out more about them here. We are helping to transform the $1.6 trillion dollar student loan debt problem by showing you real rates from America’s community lenders. Funding your education using student loans can be pretty useful. You can do this with all federal student loans. But switching federal student loan servicers usually means you go from bad to mediocre at best. The student can be appointed to any of the existing servicer companies in the United States. White Rock Loans Review 2021: Scam or Legit? These servicers vary when it comes to customer satisfaction, but the more favored ones seem to be OSLA, Granite State, and HESC. The government hands this job over to federal student loan servicers. The list of Federal Loan Servicers is given here. Student loan debt prevents employees from saving for retirement. COVID-19 Student Loan Relief Federal student loan flexibilities for the COVID-19 emergency have been extended through Jan. 31, 2021. Weâll talk more about these options below. If you actually want a good servicer, youâll have to refinance your federal student loans and work with a private lender. Regardless, refinancing through a private lender is one of the only ways to change your servicer. How Are Millennial Homebuyers Saving To Buy Their First Home? Saving thousands of dollars on your student loan debt seems ideal, and that's just what SoFi promises. This company serves 6,210,000 customers and had 3,800 complaints registered with the CFPB. Reddit
Joshua Holt A practicing private equity M&A lawyer and the creator of Biglaw Investor, Josh couldnât find a place where lawyers were talking about money, so he created it himself. Due to our somewhat limited data, it is difficult to determine exactly which federal student loan servicer is best. Personal Finance Wiki: 5 Smart Ways to Improve Your Financial Health. 9 Best Federal Loan Servicers. CornerStone. Remember how we mentioned that most people have multiple student loans? If you are fed up with the federal loan servicer assigned to you, you have the option to get another servicer. Your federal loan servicer can help you with every aspect of student loan customer service. Some customers blame servicers when, in fact, it was entirely their fault that they failed to stay updated with their debts. All Rights Reserved. The first is by taking out a Direct Consolidation Loan (however this may be a really bad idea, so keep reading). Although, in such a large company itâs not uncommon to get the wires crossed on occasion.
That can be helpful if you have the opportunity to choose a companyâwhen youâre consolidating federal loans, for instanceâand youâre looking for the best student loan servicer â¦ Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service. Once a student applies for a federal loan, he will immediately be assigned to a private loan servicer. Many student loan borrowers complain about false reporting to the credit agencies. This gives them an overall total of 28.8 complaints per million. Remember, the repayment plans discussed here are for federal loans only. The first thing you need to do is register your FSA ID if you havenât logged in to a Federal â¦ Working out flexible repayment plans as your ability to pay changes, Allowing you to temporarily halt your autopay payments if you fall on hard times (whether through forbearance or deferment), Offer loan forgiveness for those working in non-profits or the public sector once they meet the requirements, Encouraging buyers to choose forbearance over income-driven repayment (thus accumulating more interest), Not being clear with customers about how to re-enroll in income-driven repayments plans or how to qualify to remove a co-signer. Standing out as possibly the best federal loan servicer, Great Lakes actually offers pretty decent customer service. AJ Balois is a Content Manager at BPI-Philam, a bancassurance company, based in the Philippines. FedLoan is one of the largest student loan servicing companies, and they handle ALL Public Service Loan Forgiveness applications. And not all student loan service companies are alike. Most people with student loans have more than one loan since you have to reapply for a new loan for each semester that you need one. We rank the best student loan servicers so you know which student loan servicer is best and which one is not in 2020. Unfortunately, the federal government does not allow students to choose their own loan servicers, or the companies responsible in managing the students’ loans. These include: I hope this article has been insightful for you. There are only a handful of student loan servicers to choose from and you donât even get to pick anyway. With 7,999,000 customers, they have 1,883 complaints, which leaves them with 235 complaints per million customers. The loan servicer works with the borrower on repayment options and other tasks related to federal student loans. Thereâs not really such a thing as the âbest federal student loan servicer,â but â¦ The numbers are quite impressive compared to the others on our list, as youâll see. There is bound to be a bit of confusion here and there and even miscommunication. This is because your loan servicer takes your monthly payments and distributes them between your different loans. The Federal Government has assigned these 9 companies to service federal student loan programs. Here's how the 9 companies rank from worst to best. Then you'll love this article. Sallie Mae ranks the worst in borrower, school, and federal personnel satisfaction. The government provides the education loan when you apply for federal student aid, but they donât deal with the loan afterward. The numbers are quite impressive compared to the others on our list, as youâll see. In general, customers have good things to say about Great Lakesâ customer service. None of those reasons include you requesting a different one. Required fields are marked *. However, as far as the other servicers are concerned, Great Lakes is your best bet for a service provider in the country. © Copyright 2020 Student Loans Advice. I was in your exact position 2 years ago and even though I was working at Federal Student Aid, the student loan repayment process had me overwhelmed. Americans hold an astonishing $1.56 trillion in student loan debt. Better yet, if you join. Deferment or forbearance during a time of financial hardship (although most private loan companies offer some sort of deferment or financial difficulty options). If you have private loans, check with your lender about available repayment options. Thankfully, itâs not all that difficult of a task to manage. They provide service to the most customers, 8,090,000, â¦ One of my first questions was: Why am I receiving federal â¦ But this app really pays you for playing new games with cash rewards. They are accusing Navient of: Navient maintains that the lawsuits cite new servicing standards being applied retroactively and they are not at fault. There are a few reasons why the Department of Education may reassign you to a different servicer. We are your student loan servicer and we have one goal: to help you successfully repay your loans. That job is handed over to a loan servicer. If you are an incoming college freshman and you want to get a federal student loan, you better be ready and know the possible loan servicers that may be assigned to you. The main theme among AES customer complaints seems to be poor and even false communication. Figuring Out Who Your Student Loan Servicer Is. Consolidate your federal loans with a Direct Consolidation Loan or refinance your federal student loans with private loans. When you're choosing your servicer, you can read reviews and consumer complaints to find the best one for you. To protect yourself from fees due to miscommunications, be sure to do your own research as well as save any correspondence with the company. What You Should Know About Federal Student Loan Servicing. We will review this loan lender, White Rock Loans, to see if you should trust them or not. you can get a free stock like Apple, Ford, or Sprint when you join (must complete signup). As shown above, Great Lakes performs the best overall when it comes to borrower and school satisfaction, but the worst when it comes to loan performance. Federal direct student loans are the best option for students who need ... you must contact your loan servicer. Though Nelnet is doing significantly better than the other two federal loan servicers weâll talk about, their customer service still leaves something to be desired. Your email address will not be published. CommonBond Review: Is CommonBond Legit for Refinancing Student Loans? Unfortunately, the Department of Education makes it very clear that borrowers do not get to select their loan servicer. Once your request goes through, you wonât have to deal with any student loan servicer anymore â at least not for your federal student loans. If you think you can’t handle federal student loans, you can always consider getting a scholarship. The good news is that there are few tricks that are available to get loans transferred from one servicer to another. Never treat your credit as a liability, but rather an investment for your education. You can pay off all your smaller loans with one large Direct Consolidation Loan.