Change Student Loan Servicer is the changing of the student loan servicer for a reason. A student loan servicer is the service provider that takes care of the borrowings and payments of the student loan. Many cases arise from the last decade when the loan servicer’s change is almost important.
In this article, one should learn about the different ways of change the student loan servicer. We discuss the benefits of changing the loan servicer, the process, and the eligibility of the loan borrower. Also, we discuss the alternatives of change the loan servicer.
Importance of changing of the loan servicer after some time.
Many questions arise in one’s mind about the changing of the student loan servicer. We try to answer all the possible questions that are related to this article. So now, let’s get started.
What is a Loan servicer?
A loan servicer is the loan service provider who takes care of the loan borrowing or the payments made by the loan borrower. If the loan borrower defaults at any stage, then the loan servicer contacts him to make the payments. Also, loan servicer provides payment delay facility when the natural epidemic like coronavirus is spreading. The loan servicer has full access to your loan accounts.
What is a student loan?
A Student loan is a loan given to the students for graduation or higher studies since 2006. The student loan is famous in the United States, and it is said that about $1.73 trillion student loans have been disbursed till now. On average, a student who is a graduate has a $30000 student loan on his head.
Why do some student loan borrowers want to switch loan servicers?
Some student loan borrowers want to switch loan servicers because they have many problems with the present loan borrower. One of the major problems is the delay in updating the payments or the EMI’s in the student loan account. As a result of this, students have to pay late fees on their payments without any reason. Some loan servicers are delaying in giving the receipt of payment. So it is better to change the loan servicer to get rid of all the problems mentioned above.
How to check the service provider of a student loan?
To check the service provider of student loans, one should have to visit the official website. Fill in the form or the details as asked on the page. After that, submit the details then you will be able to see your student loan service provider.
Where to file a complaint against the loan servicer?
Student loan borrowers have to file a complaint against the loan servicer in the Consumer Financial Protection Bureau. This bureau helps to solve the problem of the loan borrower by contacting the loan servicer.
What are the different ways of changing the student loan servicer?
There are mainly three ways of changing the student loan servicer, which is as follows:
- By Consolidating: One should have to change the student loan servicer by consolidating the loan. Consolidating means making one single loan by combining all the running student loans. The benefit of this consolidating is that you have to pay the payment only for one loan. Also, you have the option to reduce the EMI by increasing the period of the loan. But the only disadvantage of increasing the period is that one should have to pay more interest on the same amount.
One should opt for federal government loans and apply on their official website to consolidate the student loan. They can check your eligibility and ask you some questions about the loan online. After verification, they change your student loan servicer.
- By refinancing: Refinancing the student loan is the same as consolidating the loan. But in case of consolidating, you have to contact the federal government. On the other hand, in the case of refinancing, you have the option of contacting private lenders also.
You have to remain cautious while applying to private lenders. First, check the reviews of the other students about the private lender. The service and the availability of the customer service. These things are to be considered before choosing the private lender.
- By the department of education: The third method is if the education department transfers your loans. You have to apply on the official website of the education department. Then you have to fill the form for the change of the loan servicer and wait for some days.
You have to update your present email and address to get the approval.
What are the other ways to transfer the student loan servicer?
There are other two ways to transfer the student loan servicer:
- Public Service Loan Forgiveness: This method is not a transfer of student loan servicer, but this is a method of loan forgiveness. Suppose one should have passed an entire ten years of paying the student loan. Then there is the option of public service loan forgiveness. One should have to apply for this forgiveness online, and he should get forgiveness on the balance term of the loan. One should have to apply to the Fed Loan Services to avail of this forgiveness.
- Total disability discharge: Total disability discharge means when the student loan borrower got any disability when he met with an accident. Then he has to apply to the official website of Nelnet and avail of the service of three months as provided by him.
What is the federal student loan service provider?
Federal student loan service providers are as follows:
- Fed Loan Servicing
- Financial Services
- Great Lakes
- Granite State Management & Resources Student Loan Servicing – GSMR
The article concludes that one should have various ways to change the student loan servicer. In order to reduce the payment amount and get timely payment receipts, payment should be automatically updated in the loan account, and the loan servicer should provide many other services. But if he fails to provide these services, then there is an option to change the loan servicer.
One should be aware of the new service provider as take feedback from the old students. Check the online reviews. Clear your doubts by contacting the customer care of the student loan service provider. Keep all these points in mind while changing the loan servicer. I hope you like the article.