So Your Loan Was Transferred—What’s Next?

Loan Repayment3.5 minutes

If the U.S. Department of Education transfers one or more of your federally owned student loans to a new servicer, you probably have some questions. Read on to learn about why these transfers happen, what the process looks like, and what to do next.

Why do loans get switched or transferred to a different servicer?

Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer’s contract with us ends. Even if we transfer your loans to a new servicer, we (the U.S. Department of Education) still own your loans. The “transfer” to another servicer means that a new servicer will support you as you repay your loans fully.

What should I expect when my loan is transferred?

At least 2 weeks before any loan transfer, your current loan servicer will send you an email or letter notifying you that your loans are being transferred to another loan servicer. This initial notice will include your new servicer’s name and contact information.

You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer’s website or on your credit report. This does not mean you’ve received loan forgiveness. This is part of the loan transfer process.

Your new servicer will eventually load the loan to their platform and reach out to you when that process is complete. Your post-transfer communication will explain that your federally owned loans have been transferred and that your new servicer will assist you with your account on our behalf going forward.

Lastly, your new loan servicer will be identified as the servicer of your federally owned loans in our student loan database. The new servicer reports this information to our database after your transferred loans have been fully loaded to the new servicer’s system.

You’ll be able to view the federal loan servicer code and name associated with each loan when you log in and visit your account Dashboard.

How long will it take for my new servicer’s info to show up on

Our federal loan servicers report loan information to our database weekly. As a rule,  the new servicer’s information should be available on within 7–10 business days after the transferred loans have been fully loaded to the new servicer’s system and the servicer has notified you.

Most servicer-to-servicer transfers are completed on schedule. However, in some cases there can be delays in the availability of the information in our database, so it may take longer than the average 7–10 business days.

What do I do if I’m having issues with my loan because it was transferred to a different servicer?

If you never received a notice from your new servicer about the transfer, reach out to the new servicer.

It can take up to 30 business days (6 weeks) for all of your payment history to be fully updated with your new servicer. If you think your loan information did not transfer correctly (for example: your interest rate or repayment plan changed), reach out to your new servicer.

Still having issues? Submit a complaint directly to us, the U.S. Department of Education’s office of Federal Student Aid.

Will a loan transfer affect the status of my loans (for example, if I’m in a deferment or forbearance)?

No. Loan status information is included when we transfer your federally owned loans from one federal loan servicer to another. The transfer shouldn’t cause a break or gap in any current status (such as deferment or forbearance) that applies to your federally owned loans. If you’re concerned about a break or gap, contact your new servicer for assistance.

After my loans get transferred, do I have to set up a new online account and restart auto pay?

Yes. When we transfer your federally owned loans from one federal loan servicer to another, you will need to contact the new servicer to reinitiate some services related to your account.

After the transferred loans have been fully loaded to the new servicer’s system, the new servicer will send you information that explains how to establish account access online and sign up for other services (such as web payments, electronic correspondence, and, if necessary, auto pay).

If you have questions about your account services, contact your new servicer for assistance.

Will this transfer affect my credit score?

When you transfer to a new loan servicer, you may see some changes on your credit report. We are making changes to improve this process with the goal of limiting any credit impacts moving forward for borrowers who are transferred. If you need an immediate resolution to a potential issue with your credit report, consider submitting an official dispute directly to a credit reporting company. Read more about how to dispute a credit error.

Who are the official federal student loan servicers?

With the rise in student loan scams, it’s important to make sure you’re working with the official federal student loan servicers who are contracted by the U.S. Department of Education. Here’s a list of our loan servicers, with links to their official websites.

Loan ServicerWebsite
Default Resolution

You never have to pay to get help with loan services, such as consolidating your federal student loans or applying for an income-driven repayment plan. If you are contacted by a company asking you to pay “enrollment,” “subscription,” or “maintenance” fees to enroll you in a federal repayment plan or forgiveness program, you should walk away. These services and more can be completed by your servicer for free! Avoid student loan scams.