The 8 Best Federal Loan Servicers of 2023

Finding the right federal loan servicer is an important decision. With hundreds of options available, it can be difficult to determine which one is best suited for your needs. To help you find the right fit, we’ve done the research and compiled a list of the top federal loan servicers. These lenders offer competitive rates, flexible repayment plans, and customer-friendly policies. From traditional banks to online platforms, these servicers provide a wide range of options for borrowers with different backgrounds, needs, and financial goals. We’ve included all the important details you need to know so you can make an informed decision. Whether you’re consolidating existing loans or taking out a new loan, these servicers have you covered. Read on to discover the best federal loan servicers for your needs. 

What are Federal Loan Servicers & What do they do?

A federal loan servicer is a company that manages the billing and other services on your federal student loan. The servicer works with the Department of Education to help borrowers manage their loans. These types of companies offer services such as:

Billing & Payment Processing

Federal loan servicers send out billing statements and process payments from borrowers. They may also offer options such as automatic debit or online payment to make it easier for borrowers to manage their loans.

Repayment Plan Assistance

Federal loan servicers can help borrowers explore different repayment plan options, including standard, extended, graduated, and income-driven repayment plans.

Deferment and Forbearance

Federal loan servicers can help borrowers request a temporary postponement or reduction of their loan payments through a deferment or forbearance.

Loan Forgiveness & Discharge

Federal loan servicers can help borrowers explore options for loan forgiveness or discharge, such as the Public Service Loan Forgiveness program or the Teacher Loan Forgiveness program.

Communication & Customer Service

Federal loan servicers are responsible for communicating with borrowers about their loans and addressing any questions or concerns they may have. 

How do I find out who my Federal Loan servicer is?

If you have a federal student loan, you will be assigned a loan servicer by the Department of Education. You can find out who your servicer is by logging into your account on the Federal Student Aid website or by contacting the Department of Education directly. 

To find out who your federal loan servicer is, you will need to follow these steps:

  1. Go to the Federal Student Aid website (https://studentaid.gov/).
  2. Navigate to and click on the  “Log In” button.
  3. Once you are logged in, click on the “Loans” tab in the top menu.
  4. On the “Loans” page, you should see a list of all of your federal student loans. Each loan will have the name of the servicer listed next to it.

Alternatively, you can contact the Department of Education directly to find out who your servicer is. You can do this by calling the Federal Student Aid Information Center at 1-800-433-3243 or by sending an email to the Federal Student Aid Information Center through the form at https://studentaid.gov/help-center/contact

What are the best federal loan servicers?

#1 Aidvantage (formerly Navient)

Pros

  • Offers a variety of loan options and services 
  • Offers different repayment plans to fit the needs of individual borrowers, including income-driven repayment plans
  • Offers loan consolidation
  • Has a large customer service team that is available to answer questions and help customers with their loans

Cons

  • Has been the subject of numerous complaints from customers 
  • Confusion over its relationship with Navient and how borrowers are affected when their loans were transferred from Navient

#2 MOHELA

Pros

  • As a  non-profit servicer, it is invested in helping borrowers manage and repay their loans
  • Offers a variety of repayment plans, including income-driven repayment plans
  • Has a loan forgiveness program and alternative repayment options such as loan consolidation
  • Offers online account management and  bill payment
  • Has a dedicated customer service department

Cons

  • Services a wide range of loans, which could make it difficult for borrowers to get the specific help they need.
  • Some borrowers may find the customer service is less responsive or effective than they would like.
  • May have some additional fees associated with repayment or late payments

#3 Nelnet

Pros

  • Offers online account management and automatic payments, making it easy to stay on top of your loan repayment
  • Offers a variety of repayment plans, including standard, graduated, and extended repayment, as well as consolidation and forgiveness options
  • Provides good customer service

Cons

  • May charge fees for certain services, such as for loan consolidation
  • There have been some reports of delays in processing payments and applications. 
  • There have been reported complaints of mistakes or mishandling of accounts.

#4 EdFinancial

Pros

  • Has an online portal that allows borrowers to easily access their loan information, make payments, and track the status of their loan
  • Offers various payment options to borrowers, including online payments, automatic payments, and mail-in payments
  • Friendly and effective customer service team
  • Offers different repayment options, including standard, extended, and graduated repayment

Cons

  • Reported difficulties in getting in touch with Edfinancial customer service representatives and receiving inadequate assistance
  • Reported challenges in accessing loan information
  • Reported delays in the processing of loan payments or loan forgiveness applications

#5 ECSI

Pros

  • Provides a convenient online portal for students and borrowers to access and manage their loan information
  • Offers automatic payment options for borrowers
  • Offers a variety of repayment options, such as extended repayment, graduated repayment, and income-based repayment
  • Provides flexible customer service options, including phone, email, and online chat

Cons

  • Only services student loans, and does not offer other types of loans such as personal loans
  • Websites and online portals may not provide all the information that borrowers need to make informed decisions about their loans.
  • Online portals have limited functionalities. 

#6 OSLA

Pros

  • As a state agency that specializes in servicing student loans for Oklahoma residents, borrowers may have an easier time communicating with the servicer.
  • Offers a variety of repayment options, including income-driven repayment plans and loan forgiveness programs. 
  • Provides financial literacy resources and counseling services.

Cons

  • As a state-specific loan servicer, borrowers who move out of Oklahoma may find it difficult to continue working with OSLA.
  • OSLA may not have the same level of resources or support as larger, national loan servicers. 
  • Only available to borrowers in Oklahoma

#7 Great Lakes

Pros

  • Offers competitive interest rates on student loans
  • Offers a variety of repayment plans, including standard, graduated, and extended repayment plans
  • Provides an online account management system
  • Offers loan consolidation options

Cons

  • Was named  in a class lawsuit as one of the firms providing inaccurate customer information to credit card bureaus, which affected borrowers’ credit ratings

#8 Fedloan Servicing

Pros

  • Allows borrowers to access their account information, make payments, and manage their loans online
  • Reachable customer service team
  • Offers several different payment plans, including graduated repayment and extended repayment
  • Allows borrowers to temporarily postpone or reduce their loan payments in certain circumstances

Cons

  • Has received negative reviews from borrowers regarding their customer service
  • Charges late fees, returned payment fees, and other penalties

What to do if your student loan servicer is not cooperating?

The process of getting in touch with the Federal Student Aid (FSA) Ombudsman Group is relatively straightforward. You can contact the group by:

Phone: 1-800-433-3243

Mail: U.S. Department of Education, Office of Federal Student Aid, P.O. Box 1854, Monticello, KY 42633

Online: visit https://studentaid.gov/feedback-ombudsman/disputes/prepare and submit a complaint.

Student loan servicer changed? What does it really mean?

When a student loan servicer changes, it means that the company that manages and collects payments on your student loan has been transferred from one company to another. This can happen for a variety of reasons, such as if the original servicer goes out of business or if the loan is sold to another company.

When a loan servicer changes, it can mean that you’ll have to start making payments to a different company and that the contact information as well as online portals you used to manage your loan may change. It’s important to stay informed of the change and to reach out to the new loan servicer if you have any questions or concerns. You should also update your contact information and make sure that you are aware of any new deadlines, fees or requirements that may come along with the change of servicer.

FAQs

 Who are the biggest student loan servicers?

Currently, there are four big firms dominating the student loan servicing industry in the U.S., including Great Lakes Educational Services, Missouri Higher Education Loan Authority (MOHELA), Aidvantage (formerly Navient), and Nelnet.

Is Aidvantage a good loan servicer?

Aidvantage is a reputable company that is part of Maximus, and is one of the authorized federal student loan service providers. Despite this, there have been some controversies surrounding the company. The Student Borrower Protection Center (SBPC), an advocacy group, published a report in 2022, accusing Aidvantage of practicing unfair debt collection and mismanaging account servicing. However, Aidvantage is relatively new to the loan servicing field and these complaints may be resolved with time. Additionally, it is important to note that almost all federal loan servicers face complaints from their customers. As such, we feel that it might be too early to glorify or condemn Aidvantage at the moment. 

What if my student loan servicer is bad?

If you feel that your student loan servicer is not providing adequate service, you have a few options.

  1. Contact your servicer: Your loan servicer is required to provide certain information and services to help you manage your loan. If you are having difficulty getting the information or assistance you need, you should first contact your servicer’s customer service department. 
  2. File a complaint: If you are not satisfied with your servicer’s response, or if you believe your servicer is not following the regulations or laws related to student loans, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). 

Contact the FSA Ombudsman: The Federal Student Aid (FSA) Ombudsman Group helps to resolve disputes and issues related to federal student loans. 

Final thoughts

The Federal Student Aid (FSA) office approves a number of loan servicers to handle the repayment of federal student loans. Some of the top-rated federal loan servicers include Aidvantage, MOHELA, and ECSI. These servicers have received positive reviews for their customer service and loan management options. They offer a variety of repayment plans, as well as consolidation options, to help borrowers manage their loans effectively. Overall, when working with a loan servicer, it is important to research and compare the options available. Borrowers should also pay attention to any complaints or lawsuits that have been filed against the servicer, as well as the fees that they charge for certain services. By doing this research and taking the time to understand their servicer, borrowers can make more informed financial decisions regarding their federal loan repayments.