On Dec. 4, 2020, the secretary of education extended the 0% student loan interest rate and suspension of payments on federal student loans owned by the Department of Education (ED). These relief measures began on March 13, 2020, and below you’ll find a recap of the resulting repayment flexibilities for student loan borrowers and relevant considerations.
Whether you are new to student loan repayment or not, or whether you have just one loan or 10, we know that it can be challenging to keep track of everything. And, if Federal Student Aid (FSA) transfers one or more of your federally-owned student loans to a new servicer, you may have some questions. If so, we’re here to help make sense of it all.
Sometimes FSA needs to transfer a borrower’s federally-owned loan between members of its federal loan servicer team which changes the servicing assignment for those loans.
We also transfer loans when borrowers sign up for programs, such as Public Service Loan Forgiveness (PSLF). Today, only one of our loan servicers exclusively handles accounts enrolled in the PSLF Program, so those accounts get transferred to that servicer regularly. And, sometimes, it’s necessary to transfer loans when a servicer’s contract with the Department of Education (ED) ends.
Rest assured; FSA is working closely with our federal loan servicers to make sure your loan transfer is as seamless as possible. You may need to take a few steps to ensure you get set up properly with your newly assigned loan servicer, but don’t worry; we’ll let you know what action to take and we’ll be here to support you along the way.
Here are some key pieces of information you need to know if your loans are being transferred to a new servicer:
Whether you’re currently in college for a few years or have recently returned to college, we understand this is a time of uncertainty. You may be wondering how the impact of the COVID-19 emergency affects your federal financial aid. Below, we’ve outlined flexibilities that are available to students during this time.