Protect yourself before your federal student loans manager changes
Earlier this month, the Department of Education released new details about his upcoming overhaul of the student loan service. The ddepartment first announced these sweeping changes in a june press release-including his contracts with five new student loan managers.
The ddepartment — who has struggled with the accountability of the servers in the past, hopes to make a difference with a new centralized NextGen platform. According to the press release, the five new companies will provide “enhanced customer support” to more than 68 million borrowers.
The five new companies will not take over right away, however, according to the latest update. The dthe department will continue to work with its nine existing loan officers; vsontraits with FedLoan Servicing, Great Lakes, Navient and Nelnet will not end until December 2021, while CornerStone, Granite State, Edfinancial, MOHELA and OSLA Servicing have until March 2022.
“When the time is right to upgrade your account to the NextGen environment, you will receive emails, social media messages and a wide range of other communications on what to expect and how to continue to manage your account, ”wrote Mark Brown, the vschief ooperate oofficer of Federal Aidentifier.
Protect yourself before these changes happen
While it may take over a year for these changes to be implemented, you need to be prepared:changing student loan officers can be a complicated process. In the past, changes in student loan service caused payments to lose, surprise late fees and loan processing issues. Before the review happened, Adam S. Minsky — a student loan lawyer and itselfnior Forbes ccontributor—recommend taking some not to protect you.
Upload a complete record of your student loan payments with your current loan officers, as rRecords can be lost when transferring your loans to a new manager. You should also collect copies of all communications you have had with your servers, including emails and phone call notes. Also important: if you are on the right track for Public service loan remission, take the time to certify your job.
Once service changes are made, check your bank accounts for accurate payments. Don’t assume that your previous automatic payment schedule will remain intact. You should also monitor your credit reports, which you have now. free weekly access to– to ensure that there are no errors due to the actions of your former loan manager.