The 8 Best Federal Loan Servicers of This Month – Ranked

Before we get into the rankings, it’s important to understand what a federal loan servicer is and how they go about helping students.

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 that include the following:

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.

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

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

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.

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

There are many federal loan servicers that can help you manage all your federal loan payments easily and efficiently. Listed below are the top 8 best federal loan servicers, along with the pros and cons of each one.

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. 

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

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

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

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.

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

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

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

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

Discover who your federal loan servicer is using the following 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. 

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.

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.

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 to find the best federal loan servicer for you. 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.