October 6, 2021
There are a number of important changes happening with student loans. Some of the most tangible will be a shake up of the companies servicing student loans.
The Office of Federal Student Aid (FSA) announced this week that borrowers with student loans serviced by Pennsylvania Higher Education Assistance Agency (PHEAA), which operates as FedLoan Servicing, will have their accounts transferred to MOHELA. Furthermore, FSA said it has already begun transferring borrowers serviced by Granite State to Edfinancial. Borrowers should expect all transfers to be completed before the end of the year. These changes will not impact loan balances or payment schedules, merely who the payments are remitted to and who the borrower contacts for assistance.
If your student loans are serviced by either PHEAA or Granite State, you will soon be contacted by the Department of Education and both your old and new servicers with additional details if you haven’t already.
Another student loan servicer, Navient, announced recently that they won’t seek to renew their contract with the Department of Education, as well, meaning that another new servicer will be named by the end of the year.
If you have any questions about your student loan, first contact your current loan servicer directly for the most up to date information. Then, if you’d like to discuss things like how you can make your loan payment fit into your budget a little easier, contact Your Money Line and we’ll be happy to help.
Damian is the lead Financial Concierge on Your Money Line, the financial help line serving all Pete the Planner® Financial Wellness clients. Damian is a CERTIFIED FINANCIAL PLANNER™ professional and loves answering your money questions. Despite sharing a last name and sense of humor, Damian and Pete are not related.