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Servicers with Contracts Extended Through March 2022 Servicers with Contracts Extended Through December 2021 Many saw their contracts extended for one or two more years to ensure a smooth transition from the current system to the anticipated NextGen platform. The ED welcomed in the newly contracted servicers over the summer, but that doesn’t mean the current federal student loan servicers are done yet. Status of Current Federal Student Loan Servicers Whether you’re a student confused about grants and the FAFSA, or a financial aid officer at a college seeking clarification, the new servicers will be responsible for assisting you.Ī date hasn’t been set yet for when the new team of five will assume all loan servicing duties, but it’s likely to begin sometime between 20. These companies will also help you with any federal student aid questions you have. And they’ll do more than just collect payments and answer your student loan questions.

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Once they’re cleared for full duty, the new loan servicers will work as part of the NextGen team. Cann & Associates: a financial company that provides customer support and call center operations for the Department of Education’s Federal Family Education Loan Program Trellis Company: a non-profit organization formerly called Texas Guaranteed Student Loan Corporation that currently administers Federal Family Education Loan Program loans.MOHELA: one of the ten largest student loan holders and servicers in the country that also goes by the names Higher Education Loan Authority of the State of Missouri and Missouri Higher Education Loan Authority.Maximus Federal: a veteran government contractor that serves the Department of Education along with 30 or so other federal agencies and departments.EdFinancial: a financial company that acts as the student loan servicer for 15 of the top 100 lenders in the United States.We’ve got to first put the tools, technology, and training in place to ensure that you get the right answer with every interaction.” List of New Federal Loan Servicers 2021-2022įive new loan servicers began working with the Department of Education over the summer, but they aren’t servicing student loans quite yet.Īccording to an Augblog post from Mark Brown, current Chief Operating Officer of Federal Student Aid, “These companies won’t start doing this work immediately.

Right now, NextGen is still in the works, but the announcement of new loan servicer contracts moves it a step closer to fruition. Wayne Johnson, Chief Operating Officer of Federal Student Aid (at the time) had this to say about the creation of NextGen, “The result will be a significantly better experience for students – our customers – and meaningful benefits for the American taxpayer.” The system would hold servicers more accountable too-something the ED has had trouble with in the past.

In other words, a truly one-stop-shop for all things federal student loans. Students would be able to access all of their federal student loan information from one website instead of needing accounts with several. NextGen is a student loan platform designed to enhance the student loan borrowing, repayment, and management experience for all federal student loan borrowers. The ED hopes that these loan servicers will make the long-awaited NextGen student loan platform a reality. Department of Education (ED) signed contracts with five new federal student loan servicers. 5 New Student Loan Servicers Signed with the ED in June 2020 We’ll let you know all about the changes, when they take effect, how they could affect your loans, and more. Now, you shouldn’t find yourself with a new loan servicer just yet, but you can expect changes in the next year or so. This summer, the ED made several changes that affect which companies will be servicing student loans in the future. So, they’re responsible for handling contracts, finding new loan servicers, and terminating relationships with current ones. The Department of Education still oversees the federal student loan program, though. The loan servicers collect your payments and provide customer service. Instead, that duty is contracted out to qualified financial companies and loan servicers. You borrow federal student loans from the government, but the Department of Education doesn’t service those loans.

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