This story is developing.
You might get a new student loan service by the end of this year.
Here’s what you need to know.
There’s a major announcement today that could impact your student loans starting next year, and it concerns one of the nation’s leading student loan managers:
- As the first reported by Michael Stratford from Politics, FedLoan Servicing not renew his 12-year contract with the US Department of Education for the service of federal student loans.
- FedLoan Servicing, also known as the Pennsylvania Higher Education Assistance Agency (PHEAA), manages student loans for approximately 8.5 million student loan borrowers, which is roughly 20% of all federal student loan borrowers.
- It is important to note that FedLoan Servicing is the only student loan manager who manages federal student loans for the Public Service Loan Forgiveness program, which helps student loan borrowers who work for a qualified public service or non-profit employer. get their student loan canceled.
- The current FedLoan Servicing contract will expire on December 14, 2021.
- Student Loans Officers help student borrowers manage their student loan payments, answer questions about student loans, and help with student loan repayments.
- Whether your student loan manager is FedLoan Servicing or another student loan manager, you can still contact your student loan manager at any time during the Covid-19 pandemic.
What this means for your student loans
If FedLoan Servicing is your current student loan manager, you can expect to have a new student loan manager in December. This is especially important for any student loan borrower seeking a utility loan discount, a program that has suffered for years from approval rates of 2% or less, which has kept thousands of borrowers out of business. student loan to get their student loan canceled. Democrats have come up with 5 ways to change student loan cancellation. Biden administration is working to help more student loan borrowers get their student loans canceled under existing student loan programs, and is also creating a simpler and better student loan repayment system transparent. This includes greater accountability for student loan managers and oversight of for-profit colleges, among other initiatives. These recent updates on student loans make some people wonder: is this a game-changer for student loan cancellation? The US Department of Education has not announced which student loan manager will take over the management of existing federal student loans. Student loan borrowers should continue to make student loan payments, if any, in the normal course. Currently, until September 30, 2021, federal student loan payments, including for the public service loan forgiveness program, are not required due to the temporary forbearance of student loans. If FedLoan Servicing isn’t your student loan manager (which most student loan borrowers are), there’s no indication that your current student loan manager will change.
Although federal student loan payments are suspended, there can be no assurance that this student loan relief will be extended. Therefore, now is the time to review your student loans and your student loan repayment strategy. Where to start ? Here are some popular options for saving money: