If you’ve borrowed federal student loans, then you may have heard of FedLoan Servicing. While not as well known as some of the other servicers, FedLoan is still a federal student loan servicer. If you’ve received an email or letter from them, then chances are good that they are the servicer for your loan, and you should read their message promptly.
Below, we explore FedLoan Servicing and answer all of the questions that you may have about the company, including what they do, what kinds of student loans they service, how you can contact them, and more.
Who is FedLoan Servicing?
You may see FedLoan discussed in combination with the Pennsylvania Higher Education Assistance Agency (PHEAA), a national provider of student financial aid services. That is because FedLoan is the branch of the PHEAA which handles federal student loans. The PHEAA also handles private student loans through another branch: American Education Services (AES).
The PHEAA is, then, a for-profit organization. It uses its earnings to cover its operating costs and to support its mission to “ease the financial burden of higher education for students, families, schools, and taxpayers.”
What does FedLoan Servicing do?
Like other student loan servicers, FedLoan Servicing is responsible for performing a number of duties for the borrowers they support. This includes:
- Handling any paperwork related to your student loans
- Processing your student loan payments
- Broadly managing your student loans
- Managing student loan due dates, and processing change requests as necessary
- Answering any questions you have regarding your student loans or repayment
- Helping you understand your options for deferment and forbearance
- Helping you understand the repayment plans your loans may qualify for
- Guiding you through the student loan forgiveness process, if you qualify
Types of Loans Serviced by CornerStone
FedLoan Servicing processes most types of federal student loans, including:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct Parent PLUS Loans
- Direct Graduate PLUS Loans
- Direct Consolidation Loans
- Perkins Loans
- Stafford Loans
As mentioned above, FedLoan’s parent organization, PHEAA, offers and manages private student loans through its sister branch, American Education Services (AES).
How to Contact FedLoan Servicing
One of the most important things for borrowers to understand about their servicers is that they are there to help. If you have questions about your student loans or need clarity on your repayment options, you should contact your servicer and ask for guidance. Similarly, if you believe that you might not be able to make a payment, contact your servicer ASAP so that you don’t fall into delinquency or default.
Looking for FedLoan’s contact information? You have a number of options to choose from (below). FedLoan’s business hours are 8am to 9pm Eastern Time, Monday through Friday. They are closed on the weekend.
In order to email FedLoan, you will need to sign into your account (here). This is to ensure your privacy and security, and so that customer service operators have access to the relevant information they’ll need to answer your questions.
Correspondence can be sent to:
P.O. Box 69184
Harrisburg, PA 17106-9184
Payments can be sent to:
Department of Education
P.O. Box 790234
St. Louis, MO 63179-0234
Alternatives to FedLoan Servicing
If you’ve had a poor experience with FedLoan Servicing as your student loan servicer, you may be wondering if you can transfer your loans to a different servicer. Unfortunately, it is typically very difficult to get a new federal servicer. That being said, you may be able to rectify the situation by either seeking consolidation or refinancing.
Student Loan Consolidation
Student loan consolidation is the process of merging multiple student loans into a single new loan, called a Direct Consolidation Loan. If you choose to pursue consolidation, you are able to request that your new loan either stays with your existing servicer or is transferred to a new one. While your selection may not always be honored, it often is. While consolidation may make it easier to keep track of your student loans, it may also bring with it some negatives. For example, it may reset the clock on student loan forgiveness, if you were working towards it. That’s why it’s crucial you understand the pros and cons of student loan consolidation before you move forward.
Student Loan Refinancing
Another option is to refinance your student loan with a private lender. Refinancing will essentially convert your federal student loan into a private student loan, which gives you the ultimate say over who your lender is. It could also save you money in the form of interest, though that typically means giving up certain borrower protections and benefits that come from federal loans. Like consolidation, you should understand the pros and cons of student loan refinancing before you make your decision.