Riverside

Dept. of Ed. will handle FedLoan and Granite State transfers – Riverside, California

Riverside, California 2021-09-28 17:15:08 –

There are some basic housekeeping things you need to do to keep the transfer smooth, but the education department handles the transfer itself.

both FedLoan service When Granite State Presentation In July If your current contract expires in December, we will stop providing federal student loans. The Federal Student Assistance Office of the Ministry of Education has announced that the student loans it services will be transferred to new servicers — Ed Financial Services in Granite State The borrower and FedLoan Servicing’s current unnamed servicer.

Millions of borrowers Use two servicers, including All borrowers In the Public Service Loan Forgiveness (PSLF) program, PSLF When scholarship The community erupted with questions and concerns about the oncoming transfers and what they needed to do. Borrowers in other online communities, such as Instagram, have expressed similar concerns and are asking for posts. Give advice About navigating the process.

question

Do I need to do anything to transfer my student loan from one servicer to another?

Source of information

answer

No, you don’t have to do anything to transfer your student loan from one servicer to another. However, there are some housekeeping things you need to do to make the transfer as easy as possible.

What we found

A spokesperson for the Ministry of Education confirmed that borrowers do not need to take any action to transfer federal student loans from one servicer to another.

“There aren’t many actions required by borrowers who are transferring services,” said Kristen Evans, chief of the Student and Youth Consumer Department. Consumer Financial Protection Bureau.. “Make sure your contact information is up to date, read all notifications, and then set up your account with the new servicer.”

Updating your contact information is an important first step for the borrower. FSA says so Send an email, a letter, or both when transferring someone’s loan from one federal loan servicer to another. Second, Evans says it is important for the borrower to download or print the document or statement from the old servicer’s website after receiving the transfer notice.

Doing this will help the borrower protect himself in the event of an error during the transfer. According to both Evans and a Ministry of Education spokesman, the Ministry of Education is working directly with servicers to achieve a seamless transition for borrowers, but previous mass transfers between servicers have been problematic with errors. NS Report from SBPC and AFT The transfer of millions of loans in 2014 resulted in 5 million service errors, affecting more than 1 million borrowers.

Evans recommends that the borrower reconfirm that the balance has not changed, that they are enrolled in the same payment plan, and that all loans have been transferred. If there is a problem, the borrower can seek help from the Ministry of Education or the CFPB.

Before the borrower can check everything, you must first set up an account with a new servicer. According to Evans, the first notice usually informs the borrower of the time it will take for the transfer process, and when the process is complete, the borrower’s new servicer will contact you to confirm that the loan has been transferred and for the new account. Give instructions on settings. According to the FSA, the borrower will need to resume automatic payments with the previous servicer.

However, the FSA states that the borrower’s loan situation, such as postponement and postponement, will shift. A spokesman for the Ministry of Education has revealed that this includes a COVID-19 emergency measure that suspends payments and reduces interest rates to 0%. A spokeswoman also said the transfer would not affect the forgiveness of existing loans for which the borrower was eligible for a previous servicer.

Borrowers who do not receive the transfer notice immediately do not have to panic if they do not receive the transfer notice before the current servicer contract ends in 2022.

“The borrower should not experience a service gap because of the transfer,” Evans said. “Transfers of these services can occur at any time between now and next year 2022. Therefore, the Ministry of Education has taken all the space to allow these borrowers to make a smooth transition. We have scheduled a series of service transfers to free, so you may receive the notification now, months from now, or by 2022. “

Currently, only FedLoan Servicing and Granite State borrowers should expect a transfer notice. Evans said anyone else who received the notification could be targeted by a scammer. The Ministry of Education and the servicers themselves will announce upcoming transfers as needed.

Other articles on VERIFY: Yes, the Biden administration has eliminated more than $ 9 billion of student debt, which is less than 1% of total student debt

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