If you borrowed a federal student loan to pay for higher education costs, you won’t make payments directly to the government. There are a number of loan servicers who work with the U.S. Department of Education to oversee loan repayment for federal student loans.
Understanding who your loan servicer is, and what they do is essential for the loan repayment process.
What Are Student Loan Servicers?
Student loan servicers are companies that take care of the disbursement, billing, and customer service aspects of your federal student loans. They can help you figure out things like which repayment plan you should be on and whether to consolidate your student loans.
Need deferment or forbearance? They can also help you set that up. Loan servicers are basically a one-stop shop for everything you need to know or changes you need to make on your federal student loans.
List of Major Student Loan Servicers & Companies
Here are some of the major student loan servicers:
EdFinancial Services (HESC)
Address: P.O. Box 36008, Knoxville, TN 37930-6008
Phone: 1 (855) 337-6884
Website: www.edfinancial.com
Located in Knoxville, Tennessee, EdFinancial Services has been providing loan servicing for over 25 years. They work with both federal and private student loans, as well as schools that need help with things like financial aid processing.
FedLoan Servicing (PHEAA)
Address: P.O. Box 69184, Harrisburg, PA 17106-9184
Phone: 1 (800) 699-2908
Website: https://myfedloan.org/
FedLoan Servicing is a not-for-profit organization that was created in 2009 to service federal student loans through a partnership with the U.S. Department of Education. It is run by the Pennsylvania Higher Education Assistance Agency (PHEAA) and is headquartered in Harrisburg, Pennsylvania.
Great Lakes Educational Loan Services Inc.
Address: P.O. Box 7860, Madison, WI 53707-7860
Phone: 1 (800) 236-4300
Website: www.mygreatlakes.org
For over 50 years, Great Lakes Higher Education Corporation and Affiliates worked as a non-profit organization dedicated to helping students access college by acting as a guarantor, servicer, and philanthropist. They service both federal and private loans and were purchased by NelNet in 2017.
MOHELA
Address: 633 Spirit Drive, Chesterfield, MO 63005-1243
Phone: 1 (888) 866-4352
Website: www.mohela.com
MOHELA is a student loan servicer headquartered in St. Louis, Missouri with offices in Columbia, Missouri and Washington, DC. They have been around for over 30 years and focus primarily on federal student loans.
Nelnet
Address: P.O. Box 82561, Lincoln, NE 68501-2561
Phone: 1 (888) 486-4722
Website: www.nelnet.com
Nelnet is one of the biggest student loan servicers in the country. Headquartered in Lincoln, Nebraska, they service federal and private student loans. They also own Great Lakes Educational Loan Services and are a for-profit company listed on the New York Stock Exchange.
OSLA Servicing
Address: 525 Central Park Drive, Suite 600, Oklahoma City, OK 73105
Phone: 1 (866) 264-9762
Website: https://public.osla.org/
OSLA has been servicing student loans since 1972, and focuses on servicing federal student loans. The organization was created as a public trust by the state of Oklahoma and is a non-profit.
Aidvantage
Address: For general correspondence, P.O. Box 9635 Wilkes-Barre, PA 18773-9635
Phone: 1 (800) 722-1300
Website: https://aidvantage.com/
Aidvantage, a branch of Maximus Education, LLC, is servicing either Direct or FFEL federal loans for the U.S. Department of Education. Aidvantage took over the loans that were formerly administered by Navient, a student loan servicer who stopped working with the U.S. Department of Education in September 2021.
ECSI
Address: 100 Global View Drive, Suite 800, Warrendale, PA 15086
Phone: 1 (888) 549-3274
Website: https://heartland.ecsi.net/
Founded in 1972, ECSI stands for Educational Computer Systems, Inc. In addition to working as a student loan servicer for federal student loans, they also provide support with tax document services, tuition payment plans, and refund management.
Default Resolution Group
Address: correspondence can be sent to P.O. Box 5609, Greenville, TX 75403-5609
Phone: 1 (800) 621-3115
Website: https://myeddebt.ed.gov/
Part of the U.S. Department of Education, this organization provides information and assistance for borrowers who have federal student loans in default or have received a grant overpayment. Grants, such as a Federal Pell Grant, may need to be partially repaid in the event the student receives an overpayment.
Private Student Loans With SoFi
The loan servicer on a private student loan is typically the lender. Private loans can be helpful for students looking to fill funding gaps when federal aid and scholarships aren’t enough to pay for tuition. They don’t always offer the same benefits as federal student loans, like options for deferment or the ability to pursue Public Service Loan Forgiveness, so they are generally considered only if a student has closely reviewed all other options.
SoFi provides private student loans for undergraduate and graduate students, or their parents. These loans have no fees and borrowers have the option of four flexible repayment plans. When you borrow a SoFi student loan, SoFi is your loan servicer. Borrowers are able to make payments directly in the SoFi app or online and have access to 24/7 customer service.
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How to Find out Who Your Student Loan Servicer Is
You don’t get to pick your student loan servicer, since they’re assigned to you when your loan is disbursed. If you’re not sure who your loan servicer is, don’t worry. Finding your servicer is easy. You can look it up by visiting the the Department of Education’s student aid website , which has all the information about your federal student loans and contact information for the loan servicers.
Also, sometimes student loans can be transferred between servicers, although you’re supposed to be notified if that happens.
Can You Change Your Student Loan Servicer?
While sometimes student loans can be transferred from one servicer to another, this usually doesn’t happen simply because a borrower requests it. The main way you change servicers is if you refinance your student loans from federal loans to private student loans.
By refinancing, you can potentially cut interest costs over the life of the loan, if you’re able to qualify for a more competitive interest rate. Refinancing can also allow you to adjust the repayment term on the loan, though extending the loan’s repayment term may increase the interest costs over the life of the loan.
But there are also some downsides. If you refinance your federal student loans with a private lender, you’ll no longer be eligible for income-based repayment plans, and you might lose other federal loan protections like the option for deferment or forbearance. This may be important if you are uncertain about your future income or you are struggling with your repayment.
The Takeaway
Student loan servicers are private companies that work with the U.S. Department of Education to administer federal student loans. They manage student loan payments, oversee deferment or forbearance applications, and provide assistance to borrowers with questions about their repayment plan or their student loans in general. Private student loans are generally managed by the lender.
FAQ
What is the most common student loan?
Federal student loans are the most common type of student loan borrowed to pay for higher education costs. Federal student loans include Direct Subsidized and Unsubsidized loans and PLUS Loans. Approximately 92% of student loans were federal as of June 2021.
Who are the main student loan servicers?
The U.S. Department of Education works with nine student loan servicers who manage and administer all federal student loans. Private student loans are, for the most part, serviced by the lender who made the loan. In some cases, your loan servicer may change. If it does, you should receive a notice of the change.
What do loan servicers do?
Loan servicers are companies that manage the different facets of student loan repayment. They administer the loan, collect payments, can assist and can provide assistance to customers with questions related to their student loan repayment.
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SoFi Private Student Loans
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SoFi Student Loan Refinance
If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.
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Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
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