What Is FedLoan?

Student loan paperwork lays on a desk along with a blunt pencil with a chewed eraser

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If you are a parent of a college student, or a student yourself, you might be getting email or mail from FedLoan Servicing. While this might look like spam or junk mail to you, FedLoan is a student loan servicer, and you should pay attention to what the company is sending you.

What Is Student Loan Servicing? 

After taking out a student loan, the U.S. Department of Education will assign a loan servicer to your account to help you manage and repay your loans. Keep an eye out for communications from FedLoan or other student loan servicers once you have received your first loan disbursement. Your servicer will be your go-to for the life of the loan, which can be decades. 

Loan servicers are the link between borrowers and the Education Department. Borrowers typically don’t need to make payments while they’re in school, so initially, servicers keep you updated on things like loan balances and interest accrual. You may deal with them if you want to return funds you didn’t end up needing, for example.

After you’re out of school and past the grace period, loan servicers are the ones who bill and collect the payments. They can also help you:

  • Create 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
  • Consolidate multiple loans: 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. 
  • Pursue deferral or forbearance: If you’re going through a hardship, these are two options for suspending payments.

What Is FedLoan?

FedLoan is one of the biggest student loan servicers. It serviced $355.5 billion in federal student loans with more than 8 million borrowers as of March 31, 2019, according to data from the National Student Loan Data System.

It is the only 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.  

Other loan servicers include Great Lakes Educational Loan Services, MOHELA, Navient, CornerStone, OSLA Servicing, Granite State, and Nelnet, among others. Keep in mind that you don’t get to choose which one handles your account because they are assigned by the Education Department. 

You may be working with your loan servicer for 25 years, so it’s important to establish a strong relationship with the company. Be on the lookout for people misrepresenting themselves or your options. 

FedLoan says you should be careful of anyone claiming to be connected to one of the federal loan servicers who doesn’t have your loan information readily at hand. Also, be cautious of a company that gives a disclaimer that they aren’t affiliated with the federal government. The Education Department’s Federal Student Aid (FSA) office posts a list of signs that you may be dealing with a loan scam.   

How Do I Determine My Loan Servicer?

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. Here’s how to search:

  • 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 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. 

Contacting FedLoan

To create an online account with FedLoan (and send a secure email,) go to https://myfedloan.org/borrowers. You can also reach the company by:

  • Calling 800-699-2908 Monday through Friday 8 am to 9 pm Eastern Time.
  • Faxing 717-720-1628.
  • Mailing letters to FedLoan Servicing, P.O. Box 69184, Harrisburg, PA 17106-9184 (there are additional addresses for payments, correspondence, etc.)

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

Article Sources

  1. Federal Student Aid: Federal Student Loan Portfolio

  2. Federal Student Aid: TEACH Grants

  3. Federal Student Aid: Loan Servicers

  4. FedLoan Servicing: Beware of "Debt Relief" Organizations