Founded by the Pennsylvania Higher Education Assistance Agency, FedLoan Servicing primarily services federal student loans and provides easily accessible ways, such as consolidation, to help borrowers manage their loans, explains the company. FedLoan Servicing services sold and transferred Federal Family Education Loan Program, or FFELP, loans due to the Ensuring Continued Access to Student Loans Act or ECASLA. The organization also services direct loans, which borrowers directly obtain through the U.S. Department of Education instead of other lenders.Continue Reading
The Department of Education purchased FFELP loans from other financial institutions within certain academic years under the ECASLA legislation, explains FedLoan Servicing. The Department of Education uses only select organizations, such as FedLoan Servicing, to service FFELP and direct loans.
Borrowers should log in on the official website and go to the Account Access page to view a list of their loans with FedLoan Servicing and determine whether they have FFELP or direct loans, recommends the organization. The site also features information about types of loans, interest rates and balances of borrowers.
Borrowers with federal loans with different servicers may consolidate their loans to merge several qualifying student loans into a new loan, allowing them to make only a single monthly payment to one servicer, explains FedLoan Servicing. Students who need additional loans should finish the Free Application for Federal Student Aid and update it each year, allowing schools to assess the appropriate amounts to award to them.Learn more about Credit & Lending