Is FedLoan a government loan?
FedLoan Servicing is one of eight companies that service federal student loans by collecting and tracking payments. FedLoan is operated by the Pennsylvania Higher Education Assistance Agency, or PHEAA, a nonprofit that provides financial aid services and administers multiple state grant programs.
Is FedLoan servicing legit?
Here’s the scoop: FedLoan Servicing is a legit company. It’s one of several student loan servicers contracted by the U.S. Department of Education to handle federal student loans.
Who owns Fed loan?
the federal government
FedLoan Servicing was established by the Pennsylvania Higher Education Assistance Agency (PHEAA) to support the U.S. Department of Education’s ability to service student loans owned by the federal government. Along with Nelnet and Navient, it is one of the big three for-profit federal student loan servicing companies.
Who took over FedLoan servicing?
The 6 million student loan borrowers whose federal loans are serviced by Navient will eventually be transferred to a new servicer, Maximus, subject to the Education Department’s approval, Navient said prior to its contract renewal. But Navient isn’t the only student loan company that plans to end its federal contract.
What type of loan is FedLoan?
FedLoan Servicing is a student loan servicer for federal and private student loans operated by the Pennsylvania Higher Education Assistance Agency (PHEAA), a nonprofit providing financial aid services and administering several state grant programs.
Is FedLoan servicing part of Navient?
Yesterday, Navient NAVI +1.5% announced that it plans on leaving the federal student loan servicing system, sending shockwaves through the loan servicing space. Nearly 6 million student loan borrower accounts currently handled by Navient will need to be transferred to a new loan servicer in the coming months.
Is Navient the same as FedLoan?
Unlike the departures of FedLoan Servicing and Granite State, however, the Navient federal student loan accounts — if the proposal is approved by the Department — would be transferred to Maximus, a company that currently handles much of the Department of Education’s defaulted federal student loan portfolio.
Is FedLoan a private company?
FedLoan Servicing isn’t a lender nor does it service private loans. It was established in 2009 by PHEAA specifically to service student loans owned by the federal government.
Why is FedLoan servicing going away?
FedLoan Servicing, one of the largest student loan services contracted by the U.S. Department of Education, said it will be getting out of the student loan game altogether at the end of 2021, saying loans are getting too complicated and too costly.
Is Nelnet and FedLoan the same?
Nelnet is a student loan servicer (like FedLoan Servicing) that was chosen by the U.S. Department of Education (ED) to service federal student loans. We keep borrowers up-to-date with information about their loans and help them manage the loan repayment process.
Who is replacing Navient?
Maximus
The U.S. Department of Education announced on October 20, 2021 that the 5.5 million Direct Loan borrowers currently serviced by Navient NAVI +1.5% will be serviced by Maximus MMS +1.4% . Maximus will assume the Navient student loan servicing contract, which was recently extended by two years.