If you’ve ever taken out a student loan, the Department of Education might have assigned you to FedLoan Servicing (PHEAA), or FedLoan — one of a handful of student loan servicers. FedLoan manages billing and repayment for federal student loans and the company handles loan accounts for more than 7 million students. FedLoan also manages Public Service Loan Forgiveness applications and was established by the Pennsylvania Higher Education Assistance Agency (PHEAA) to help service federal loans and also operates through that agency.
Unfortunately, FedLoan is not the most popular servicer of the 9 companies that service federal student loans. In fact, student loan borrowers have filed complaints with the Consumer Financial Protection Bureau (CFPB) against FedLoan.
Benzinga wants to help you understand how FedLoan works and how to get the most out of your experience with FedLoan.
Who Uses FedLoan?
FedLoan handles student loan administration for borrowers. You don’t get to choose your servicer prior to paying back your student loans — you’re assigned a servicer. It’s common to think that FedLoan is a scam because you don’t choose the servicer yourself and you don’t sign up with the servicer ahead of time. Don’t let that confuse you!
Your may get assigned to another student loan servicer if you’re not assigned to FedLoan:
- Great Lakes Educational Loan Services, Inc.
- Granite State (GSMR)
- OSLA Servicing
- Debt Management and Collections System
How to Use FedLoan
You do not need to pay for FedLoan’s billing, repayment plans, loan consolidation and other services.
- Access your account online and set up autopay. You want to register for an account right away (while you’re in school) so you can keep track of your loans while you’re in school. Your first bill arrives 6 months after school. You can access your monthly billing statements and set up autopay through FedLoan.
- Choose a repayment plan. FedLoan will put you on the 10-year standard repayment plan — a payment plan that breaks up your balance into 120 fixed payments. However, you may choose a different payment plan during your exit counseling session before you leave school.
- Request income-driven repayment plans. You can also request to pay back your student loans through income-driven repayment, which limits your student loan payments to a percentage of your income.
- Make deferment and forbearance requests. FedLoan can help you temporarily stop making payments or reduce your payment amount if you qualify.
- Add extra payments. You can request FedLoan to apply extra payments to each payment you make.
- Process applications for Public Service Loan Forgiveness. FedLoan is the only federal loan servicer that handles Public Service Loan forgiveness, which means the government forgives the remaining balance of your loans after you make 120 payments as long as you work for a nonprofit or for the government.
Do I Need a Student Loan Servicer?
Yes, you need a loan servicer for federal loans, which handles the billing and other services on your federal student loan.
Keep your contact information up to date so your loan servicer can help you stay on track with loan repayment. If your circumstances change during your repayment period, your loan servicer will be able to help at any time.
How to Get in Touch with FedLoan
You can contact FedLoan Monday through Friday, 8 a.m. to 9 p.m. ET, or you can email 24/7. Call 1-800-699-2908 or use the "Contact Us" link on FedLoan’s website.
Not sure which company is your student loan servicer?
Log in to My Federal Student Aid to find out who your student loan servicer is or get in touch with any of the loan servicer contact centers by calling the Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID.
Get the Most Out of Your Experience with FedLoan
You can't choose your servicer because the U.S. Department of Education assigns you a servicer when your loan is first disbursed. However, you can change student loan servicers if you consolidate your loans.
To get the most out of your experience, contact FedLoan with questions and explore your repayment options and more.
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