When applying for a loan to finance your studies, you can apply through a private loan company or federal student aid. Applying for federal student loans comes with benefits such as forgiveness and an IDR payment plan.
What student loan companies are federal? Third-party companies usually handle federal student loans. This article will also explain how to find your loan servicer. You are automatically assigned a loan servicer when your federal loan application is approved.
Federal Student Loan
Federal student loans are handled by third-party companies. They stand as middlemen between the federal government and the loan borrowers. Your loan repayment plan is handled by your assigned loan servicer.
Federal student loan works like every other loan application. The only significant difference with federal student loans is that you can access additional benefits. Federal student loans can also be paid within a period of 10 -20 years. You can also extend the payment length to suit your income.
Federal student loan borrowers can opt for the income–driven payment plan. Your family size and discretionary income determine how your monthly loan payment is calculated. You may pay little or nothing monthly if your income is below the federal poverty guideline for your family size.
List Of Student Loan Companies That Are Federal
Your loan service company handles everything that pertains to your loan, including payment, deferment, and student loan forgiveness. You can also contact your loan servicer when you need assistance, information or guidance on anything pertaining to your student loan.
- Default Resolution Group
- Edfiniacial
- Aidvantage
- Nelnet
- OSLA
- ECSI
- MOHELA
How To Find Your Student Loan Servicer
Student loan payment was paused in 2020 due to the COVID-19 pandemic. The initial student loan forgiveness plan would have saved a lot of borrowers from resuming payment during this period. The Supreme Court has ruled against student loan forgiveness, and borrowers have no choice but to resume payment.
Your previous loan servicer before the covid-19 might not be your new loan servicer. You can check your new loan servicer by following the guidelines below.
Visit your student loan account dashboard at studentaid.gov. Search for the “My Loan Servicers” section on the page. You will see the contact info and how to reach your new loan servicers on the page.
Another option is for you to call the Federal Student Aid Information Center. The official hotline for FSAIC is 1-800-433-3243. You can then request your new loan servicer’s information from the call center representative.