Changes are coming - but not yet
July 22, 2020
If you're waiting for information about a new servicer for your student loans, you may want to take a break from hanging around your mailbox.
Although many student loan borrowers have heard the news about big changes coming to the federal student loan servicing program, the changes won't happen immediately.
In late June, the U.S. Department of Education announced that as a part of its overhaul of the federal student loan servicing system, new contracts would be signed with five companies. Some of those five companies, which includes EdFinancial Services LLC, F.H. Cann and Associates LLC, MAXIMUS Federal Services, Inc., Missouri Higher Education Loan Authority (MOHELA), and Trellis Company (formerly Texas Guaranteed), already provide some of the current servicing of student loans.
Although the contract with the current loan servicers could expire at the end of this year, the Department has indicated that current servicers will still be operating until a new loan servicing environment is implemented to avoid any disruptions in customer service to borrowers. In addition, if a borrower is assigned a new loan servicer, that borrower will be provided with advance notice of that change.
Student loan borrowers are reminded to continue communication with their current servicers. For borrowers who are still enrolled in school, they should continue to communicate with their school regarding their federal financial aid.