Student loan cancellation gets a new student loan manager.
Here is what you need to know.
There have been several updates to your student loans over the past few weeks. This includes a major announcement regarding the postponement of student loan payments until May 1, 2022 as well as a major announcement regarding the cancellation of student loans. As President Joe Biden reshapes student loans, another update regarding your student loan manager is worth noting. Let’s explore. (The Department of Education will cancel $ 2 billion in student loans in a matter of weeks).
Student loan exemption: new student loan manager
If you are looking for a civil service loan forgiveness, it is important to understand who your student loan manager will be. Your student loan manager is the company you send your monthly student loan payments to and contact for customer service. The Public Service Loan Waiver Program is a federal program established in 2007 that helps student loan borrowers who work for a qualified public service or non-profit employer obtain full waiver of their student loan s. they meet several requirements. Historically, FedLoan Servicing (also known as PHEAA) has been the student loan manager for the public service loan forgiveness program. However, the US Department of Education has announced that MOHELA will become the new student loan manager for the public service loan forgiveness program. This means that if you are looking for a utility loan discount, you will no longer be making student loan payments to FedLoan Servicing and instead making your monthly student loan payments to MOHELA. (How to qualify for the automatic student loan exemption).
1. Who is my current student loan manager?
If you are enrolled in the public service loan cancellation program, FedLoan Servicing is your student loan manager. If you are not looking to get public service loan forgiveness, you can use another student loan service for your private and federal student loans. Who is your student loan manager? To find your federal student loan manager, log into your Federal Student Aid (FSA) account. You can also contact Federal Student Aid at 1-800-4-FED-AID (1-800-433-3243). For your private student loan manager, check your monthly student loan statements.
2. Will my student loan officer change?
If you are enrolled in the public service loan cancellation program, your student loan manager will become MOHELA. The US Department of Education will notify you in writing if your student loan officer changes. Even though federal student loan payments have been postponed for the fifth time, the Education Department continues to transfer student loan borrowers to a new student loan service rather than wait until May. (Biden extended student loan relief, but advocates really want student loan cancellation). For example, if your federal student loans were managed by Navient, FedLoan, Granite State, or CornerStone, for example, you would get a new student loan manager because those companies announced that they would be leaving the federal student loans department. For FedLoan Servicing, for example, the Department of Education transfers your federal student loans to MOHELA, Aidvantage, Edfinancing, and Nelnet
3. What steps must you take with your student loans?
You don’t have to make any changes to your student loans if you get a new student loan manager. Obtaining a new student loan service will not change your loan terms or your interest rate. Federal student loans have fixed interest rates, which means they won’t change during the term of your student loans, whether you keep or change your student loan officer. You should continue to make student loan payments to your current student loan manager until you are notified if you want to make payments to another manager. If your student loan manager changes, be sure to update your automatic payment information so you don’t miss any student loan payments. (Here’s how to get a student loan discount during the Biden administration).
Student loans: next steps
What are the next steps for your student loans? For your student loan manager, you don’t have to take immediate action. The Education department will contact you if you are concerned. If you focus on canceling student loans in the public service, now you know your student loan manager will change. You may also be one of the 16 million student loan borrowers who will also benefit from a new student loan manager this year. It is important to note that although federal student loan payments are currently on hold, student loan relief will not last forever. Make sure you understand all of your options now for paying off your student loan. Here are some smart ways to pay off student loans and save money: