San Jose, California.And December 28, 2021 /PRNewswire/ — There have been some big changes while federal student loan payments have been on hold since then. March 2020. Here’s what you need to know about changes to the Student Loan Service, from myFICO.
For more loan and credit education, visit the myFICO blog at https://www.myfico.com/credit-education/blog
Two of the largest student loan providers — companies that handle loan bills and payments — are terminating their contracts with the US Department of Education. This means that millions of borrowers will start making payments to new companies When payments stop expires in January 2022.
You may be affected if you have a federal student loan from Navient, which transfers loans to Maximum, or Granite State, which will handle its Edfinancial loans.
A third employee, the Higher Education Assistance Authority of Pennsylvania, which acts as FedLoan, will transfer loans to other service providers by December 2022.
what are you expecting
In the weeks leading up to the change, you should receive the name and contact information for your new maintenance. Make sure you keep an eye on your mail and email so you don’t miss a notification.
It’s possible that the automated recurring payments you set up with your old provider won’t transfer to the new service. You will also need to create an online account with the new service if you want to check your balance and make payments online.
Your current payment plan, including deductible and 0% interest under CARES Act, remains in effect. If you need to request additional bearing or change your repayment plan after your loan transfer, you will work with your new provider.
How do you prepare
Make sure your current loan provider has your most recent contact information so you don’t miss important communications about a new loan or service. If your loan has not yet been transferred, you may still have time to log into your account online or call to verify your information.
Download copies of your previous loan statements so you have a history of your balance, interest rate, and payment history. over the years, Consumer Financial Protection Bureau Thousands of consumer complaints about receiving bad loan information from loan providers. Having your records gives you a chance to check the account details you get from the new service.
It’s worth checking your credit report a few months after the switch to validate your loan reports. Errors in reporting your loan can affect FICO® result and your ability to get approved for loans and other credit-based products. Challenge any inaccuracies with the credit bureaus or directly with the loan service provider.
Scams often grow around big changes like this, trying to trick people into sending money or giving away personal information. Beware of scams Related to student loan forgiveness, consolidation, or low interest rates.
Expect to receive your first billing statement from your new servants a few weeks after your patience is over. Log into your Federal Student Aid account at StudentAid.gov if your provider is Navient or Granite State You do not receive details about your new service. You can also call 1-800-4-FED-AID to speak with someone.
myFICO makes it easy to understand your balance with FICO® Scores and credit reports and alerts from all three offices. myFICO is the consumer division of FICO – get FICO scores from people who get FICO scores. For more information, visit https://www.myfico.com.
View original multimedia download content: https://www.prnewswire.com/news-releases/your-student-loan-servicer-may-change-heres-what-it-means-301451102.html