What Is FedLoan?

Definition & Examples of FedLoan

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FedLoan is a student loan servicer that works with the Department of Education to manage billing and repayment for federal student loans. It is a legitimate company that handles loan accounts for more than 7 million students, including borrowers who received TEACH grants.

If you are assigned to FedLoan as your student loan servicer, it is the company responsible for assisting you with billing, repayment plans, loan consolidation, and more. You do not need to pay for these services.

Learn why your student loan account was assigned to FedLoan and how to handle your financial relationship with a student loan servicer.

What Is FedLoan?

FedLoan a student loan servicer, one of the companies contracted by the U.S. Department of Education to handle billing and payment for student loans. It is one of 11 student loan servicers that work with federal student loan accounts.

FedLoan is assigned about 10% of student loan accounts. It was responsible for servicing the accounts of more than 7 million borrowers, totaling approximately $375.8 billion in loans, as of June 2020.

FedLoan is the federal student loan servicer the government uses for its Public Service Loan Forgiveness program and the servicer for the TEACH grant program, which makes awards to people studying to become teachers in low-income or high-need areas. 

Other loan servicers include:

Alternate name: FedLoan Servicing (PHEAA)

How FedLoan Works

After you take out a student loan, the U.S. Department of Education assigns a loan servicer to your account to help you manage and repay your loans. You do not get to select your servicer.

If you are assigned to FedLoan, you will receive communication from them, usually via mail and email, once you have received your first loan disbursement. Your servicer will be your go-to for the life of the loan, which can be a few years or several decades.

In some cases, you may be assigned a new student loan servicer. If this happens, you'll be notified in writing and by email. The new servicer will have all your account and loan information, and you will not be charged for the transfer.

Borrowers typically don’t need to make payments while they’re in school, so initially, FedLoand will keep you updated on things like loan balances and interest accrual.

However, you may need to contact FedLoan while you are still in school. For example, you may deal with them if you:

  • Want to return funds you didn’t end up needing
  • Need to update your student status
  • Have a change of address or other contact information

After you’re out of school and past the grace period, FedLoan will be responsible for billing you on a regular basis and collecting the payments that you use to pay off your student loan.

FedLoan is also responsible for assisting you with other tasks related to your student loans, such as:

  • Repayment plans: If you have a hard time keeping up with your monthly payments, your student loan servicer can help you change your plan, perhaps even to an income-driven repayment plan
  • Loan consolidation: If you have more than one loan, you may choose to consolidate to get a fixed interest rate and lower your monthly payment. You’ll work with your servicer to complete this. 
  • Deferral or forbearance: If you’re going through a financial or other hardship, these are two options for suspending payments.

These services are offered free of charge. You do not need to pay FedLoan for any of these services.

Any company that attempts to sell you these services, requests power of attorney over your student loans, or asks for access to your accounts is likely a scam. You also do not need to pay another company to:

  • Contact FedLoan for you
  • Access your FedLoan or Federal Student Aid accounts

If you have a complaint about your servicer, you can use the online form for the Federal Student Aid Feedback System. You can also go through the Consumer Financial Protection Bureau

FedLoan is a genuine company, but not everyone who contacts you regarding your student loans will be. Always confirm that any information you receive about your student loans, especially by phone, is legitimate in order to protect against fraud.

Anyone who claims to be connected to your student loan servicer but doesn't have your account information at hand is likely part of a scam. You should also be cautious of a company that gives a disclaimer that they aren’t affiliated with the federal government.

The Department of Education’s Federal Student Aid (FSA) office posts a list of signs that you may be dealing with a loan scam.

Do I Need A Student Loan Servicer?

Every student loan borrower is assigned a student loan servicer to handle their account, including billing and repayment options. This is a non-optional part of the student loan process.

Your servicer will notify you once it's been assigned to your account. If there's any doubt which servicer you have, the details are posted online with the National Student Loan Data System. To find that information:

  • Visit the National Student Loan Data System website.
  • Choose the “Financial Aid Review” and accept the terms and conditions when prompted.
  • Log in to your account with your Federal Student Aid (FSA) ID. If you don’t already have an account, you can make one.
  • Review your information to find your loan servicer.

Private student loans are also assigned loan servicers. With this type of loan, your servicer should be listed on your credit reports. You can access your credit reports free of charge at annualcreditreport.com. 

How to Get In Touch With FedLoan

If you need to contact FedLoan about your student loans, repayment, or other billing concerns, there are multiple ways to do so.

  • Create an online account with FedLoan at https://myfedloan.org/borrowers. You can use this account to review your loan and billing status, as well as send secure email to FedLoan.
  • Call 800-699-2908 Monday through Friday 8 a.m. to 9 p.m. Eastern Time.
  • Fax 717-720-1628.
  • Send mail to FedLoan Servicing, P.O. Box 69184, Harrisburg, PA 17106-9184.

Key Takeaways

  • FedLoan, or FedLoan Servicing, is a student loan servicer that works with the Department of Education to manage billing and repayment for federal student loans.
  • It is a legitimate company that handles loan accounts for more than 7 million students, including borrowers who received TEACH grants.
  • After you’re out of school, FedLoan will be responsible for billing you on a regular basis and collecting the payments that you use to pay off your student loan.
  • FedLoan is also responsible for assisting you with repayment plans, loan consolidation, deferment, and more. You do not need to pay for these services.

Article Sources

  1. Federal Student Aid. "Who’s My Student Loan Servicer?" Accessed Oct. 2, 2020.

  2. Federal Student Aid. "Servicer Performance Metrics and Allocation: Quarter Ending 12/31/2019," Download "Federal Servicer (TIVAS and NFP) Allocations." Accessed Oct. 2, 2020.

  3. Federal Student Aid. "Federal Student Loan Portfolio: Servicer Portfolio by Loan Status," Download "June 2020." Accessed Oct. 2, 2020.

  4. Federal Student Aid. "TEACH Grants." Accessed Oct. 2, 2020.

  5. FedLoan Servicing. "Beware of "Debt Relief" Organizations." Accessed Oct. 2, 2020.