Working with Student Loan Servicers

Your Servicer(s) Is There to Help

Accrued interest. FFELP. Direct Loan Program. Subsidized. Unsubsidized. There is a lot to know about paying back your student loan(s).

And if you have more than one servicer, it can be easy to lose track of your loan(s). We can help. Don't know who your servicer(s) is? Can't find your federal student loans? It's easy to find out. Visit the Federal Student Aid (FSA) website, which is the centralized database for federal student loans

Managing Your Loans and Servicers

Multiple servicers, different loan types, dozens of payment due dates…student loans are one area of life where you have to be organized. Otherwise you might mix up payments or worse, miss one.

You can create a tracking sheet on your computer or chart it all on a piece of paper. Whatever system you use, be sure to keep track of these key things for each of your student loans.

• Servicer
• Loan holder
• Loan type
• Payment due date
• Payment amount
• Where to send the check
• Your servicer's online account information

• Synchronize Your Due Dates

  Most servicers will change your payment due date. All you have to do is ask them. If you're having trouble remembering when to pay, you may be able to have your loans due on the same day. If you need to balance your cash flow, consider adjusting the due date of your student loan payment to line up with your paychecks.

  Call your servicer(s) to see if you can change your due dates.

• Sign up for Automatic Payment

  With automatic payments you don't have to remember when to make your payments or where to send them. Your servicer(s) debits your checking or savings account automatically.

  But be careful: if your account doesn't have sufficient funds when your servicer(s) tries to make the automatic withdrawal, you could get hit with late fees and charges for insufficient funds.

  Check with your servicer(s) to set up automatic payments.

• Find out How They Apply Extra Payments

  Making extra payments is a good way to reduce your balance and save on interest payments, but don't assume the payment will be applied to principal. It will be applied as required by federal regulations.

  Contact your servicer(s) to discuss the options.

• Know What Your Servicer(s) Can Do for You

  If you qualify for a deferment—because you're in school or unemployed—your servicer(s) will evaluate to determine if you meet the eligibility requirements. If you don't qualify for a deferment, you may qualify for a forbearance. Ask your servicer(s) for more information.

  Your servicer(s) should:

  • Honor your grace period
  • Grant you a deferment—if you qualify
  • Grant you certain mandatory forbearances—if you qualify

  Your servicer(s) may:

  • Grant you a hardship forbearance
  • Change your due dates
  • Offer you interest rate discounts for automatic payment

  Remember: servicers won't necessarily give you a deferment or a forbearance unless you ask for it. Even if you qualify, you may still have to apply.

  Use our Deferment eligibility checker to see if you qualify for a deferment.