Student Loan Servicers List
There are many different student loan servicers. Each one has different policies, and you’ll want to know which ones apply to you. Here’s a list of all the servicer types:
Direct Loans are loans made directly to students by the federal government. They have no origination fees and have a fixed interest rate. Direct Loans are available for both undergraduate and graduate students, as well as parents of dependent undergraduate students. The Federal Direct Loan Program also offers a variety of repayment plans and loan forgiveness options if you’re eligible, including Public Service Loan Forgiveness (PSLF).
Direct Loans are offered by several different servicers, but all will be serviced by FedLoan Servicing if you consolidate your loans into one Direct Consolidation Loan or home equity loan (consolidated into a new Direct Consolidation Loan). If you don’t consolidate your loans into one direct consolidation loan, they’ll be serviced separately by their own respective servicers—which means that if one goes out of business or starts charging more in fees than others do (as is often the case with private student loans), it could affect how much money you end up paying back overall.
Federal Family Education Loan Program (FFEL)
The Federal Family Education Loan Program (FFEL) is a program that allows the federal government to lend money to students. It also allows private lenders, like banks and other financial institutions, to lend money to students. And sometimes it does both at the same time!
The idea is that this lending partnership between the government and private lenders will help more Americans get access to affordable education than either could do on their own. But there are some things you should know before taking out any loans through this program:
William D. Ford Federal Direct Loan Program
The William D. Ford Federal Direct Loan Program is a federal student loan program that provides loans to students and parents who are attending school.
As part of the federal government, the William D. Ford Federal Direct Loan Program is also known as FedLoan Servicing.
Federal government consolidation loans
Federal government consolidation loans are offered by the federal government to consolidate multiple student loans. If you have more than one federal student loan, you may be able to apply for a Federal Consolidation Loan to take care of all your debt in one place.
If you are in default on any of your federal student loans, the Department of Education will offer this option as a way to help get them up-to-date again. You will still be responsible for making regular payments while they process your application and determine how much money is owed on each loan or other debt obligation before it can be paid off with the new consolidated loan.
Consolidation loans from private lenders
Private lenders offer a variety of student loan consolidation options, including refinancing and payday loans.
- A consolidation loan allows you to combine multiple student loan debts into one lower monthly payment at a reduced interest rate.
- To apply for a consolidation loan, contact your current lender or visit the website of your current lender to get an application form. You can also ask your lender if they have any special programs or repayment plans that could help reduce the cost of paying back your debt.
U.S. Department of Education Direct Loan Consolidation Service (DLCS)
- What is the DLCS?
The Direct Loan Consolidation Service (DLCS) is a free service that consolidates multiple federal student loans into one loan. The primary benefit of the DLCS is that it allows you to consolidate all of your federal student loans into a single new loan with a single monthly payment. This means that you can restructure your payments, which may help lower them if they are high now or increase them if they are currently too low for your needs and future goals.
- How does it work?
The DLCS allows borrowers to combine their Federal Family Education Loan Program (FFEL) Stafford Loans, Perkins Loans and Supplemental Loans for Teachers into one new direct consolidation loan through Sallie Mae Bank or another servicer approved by U.S Department of Education (ED). If you have any federally-guaranteed student loans made directly by ED such as William D Ford Direct Loan Program loans, Parent PLUS Loans or Grad PLUS Loans, these can also be included in your consolidation application
Private student loans
- Private student loans are not guaranteed by the federal government, so they should be used as a last resort.
- Private student loans can be more expensive than federal loans because they have higher interest rates and fees.
- Private student loans are not eligible for income-driven repayment plans or forgiveness programs offered to borrowers with federal loans, like Public Service Loan Forgiveness (PSLF). They also do not qualify for deferment or forbearance in the event of financial hardship.
It’s important to find out about your student loan servicing company and your options for loan servicers.
It’s important to find out about your student loan servicing company and your options for loan servicers. Not all student loan servicers are the same, and some may be better suited to help you manage your debt or pay it off early.
There are many different student loan servicers, and they all offer different options. It is important to know what type of service you need so that you can find the right company for your needs. You should also consider how much time it will take to get through different processes with each servicer before deciding who will be handling your loans moving forward.