As many student debt borrowers already know from first-hand experience, a number of companies are involved with student loans. Normally, there is a lender, which is usually the government or a private bank. Then, there is a student loan servicer that manages the debt and oversees the repayment of this money. Although some banks may service student loans in house, most student debt borrowers need to contend with third-party student loan servicers. It is not uncommon for student loans servicers to change, and dealing with a different student loan servicer can be a seamless process if you keep a few things in mind.
During the course of my student debt repayment saga, I had to log onto four different websites in order to pay off my student loans. Some of my debt was with private banks, and most of my debt was originated from the federal government. The private bank that I had a loan with seemed to manage that student loan in house. In fact, I was able to view all of my student loan information alongside my banking information at that institution. As a result, dealing with a different student loan servicer was never an issue for my debt with this private bank.
However, the vast majority of my debt was originated from the federal government. It is my understanding that the federal government contracts with a number of different student loan servicers to manage student loans that it originates for millions of borrowers. It makes sense that the government would farm out some of the management work to companies that might have more experience with overseeing the repayment of student debt.
Dealing with a different student loan servicer was not on my radar when I first started paying off student loans. In the beginning of my student debt repayment saga, I received some mail from the government informing me that one particular servicer would be managing my student loans. I easily created an online account with this servicer, and from this online portal, I was able to see all of the information related to my loans.
I then began a routine of paying off my student loans through this student loan servicer. I submitted my bank information so that the servicer could automatically deduct student loan payments from my bank accounts on a certain date each month. I did this so that I would not face any serious consequences if I forgot to submit a payment in a given month. However, I usually just manually submitted the payment before the day the automatic payment was made so that I could be more in control of my student debt repayment. Also, this online portal made it easy for me to see all of the principal and interest of the debt I was paying off.
However, about a year into my student debt repayment saga, I received word that I was being assigned to a different student loan servicer. From that point forward, I was unable to log onto the online portal for my old servicer, since an error message came up noting that the file had been assigned to another servicer. In addition, I was unable to access tax forms and statements from my prior servicer.
When dealing with a different student loan servicer, I needed to create a completely new online account for the new servicer to which I was assigned. It took some time to get my credentials, but once the account was created, I was able to submit payments and track my information like I had before. It was kind of annoying to now report to a new servicer, but the second servicer actually had a better user interface that provided each borrower with a ton of information about their debt. As a result, I wasn’t too bummed out about being assigned to a new servicer and losing access to my old information.
Dealing with a different student loan servicer can be easier if you keep a few things in mind. For one, it pays to not only stay current on your student loans, but to pay them off a few months in advance. It took a while to be assigned to a new servicer, and during this time, I had difficulty submitting payments. Of course, I’m sure the servicer wouldn’t penalize someone for making a late payment under the circumstances, but if you prepay your loans by a month or two, you’ll never feel anxious about not being able to make a payment right away.
In addition, I was not too worried about my lack of access to information from my old student loan servicer. I made sure to keep receipts of all the payments I submitted through my old servicer. In addition, I also made sure to keep all of my student loan statements and tax forms provided to me by the old servicer. As a result, I never needed to go back to my old servicer and attempt to locate documents or information, since I already had everything that I needed in my own possession.
In the end, dealing with a different student loan servicer can be a frustrating process. Individuals in this situation need to set up new accounts and might lose access to information that was previously accessible. Nevertheless, by keeping a few things in mind, dealing with a different student loan servicer can be a seamless process.