I questioned Nelnet because I paid off Sallie Mae and didnt want to pay for the same loan twice. I actually think thats why they dumped my consolidation load. I would make doubly sure with Sallie Mae that everything transitioned well before assuming that everything carried over without a hitch. Nearly 10 million federal student loan borrowers will be transitioned to a new servicer by the end of this year after two student loan servicersFedLoan Servicing and Granite State. If you have federal student loans, read this | Consumer Advice The following day, I got an email saying that my account has been transferred to Nelnet. You may not have signed anything with the new servicer but its not their money you borrowed: its the US governments. But I got an email earlier this week stating they were being transferred at least. Loan was wiped to zero, credit score fixed. Do not put others at risk by providing bad information. So Ive uped my auto-payments to more than what they previously were but still am disappointed that I lost that interest rate reduction incentive to be signed up for auto-pay. My loans were transferred to Fed Loan Servicing and my payments went up 78.19. Had I not double-checked I could have gone months with increasingly accumulating interest. It seems that everyone is experiencing similar headaches with the processing and managing of their student loans. Sallie Mae called me and everyone I know. I was okay with directloans and I paid in $60k in the past 11 months. Or give me an idea of what I might say to whom? The loans are being transferred, not sold. Excellent blog! Thats not right, paying it back to the govt is paying it back. They said only FedLoans is currently servicing the PSLF plan and that I should submit a form for certification that my employer is in public service through FedLoans. Wells Fargo ACS Sallie Mae Nelnet AES USA FUNDS Fed Loans ECMC. To my pleasure, it looks so similar to what ACS looked like when I would login to their site prior. I find this all mind boggling! Commissions do not affect our editors' opinions or evaluations. Student Loans Listed as Transferred - Experian Also I was way ahead on my loan payments, meaning technically I didnt have to make payments if I got into a bind, but when transferred I noticed THAT wasnt transferred. Their goal is to get you to pay as little as possible for as long as possible. Under the initiative, called Next Generation Financial Services Environment (Next Gen), only five companies will handle student loan servicing and customer service. In other cases, the Department of Education may force the change. http://www.consumerfinance.gov/blog/scoring-student-loan-servicers/, In fact, Sallie Mae is being investigated by the Department of Justice, federal banking regulators, state governments, and the Federal Deposit Insurance Corp. http://www.huffingtonpost.com/2013/09/24/cfpb-sallie-mae_n_3985330.html?view=print&comm_ref=false. 1. Knowing your student loan balance can help you make a plan to pay off your student loans. This is great!!!.. Who has student loan debt in America? - The Washington Post After all, it increased my principal by $17,593.49 more than $10,908.18 of which was in collection fees. This is really the only part that bothers me (at the moment) I dont mind if my loans get transfered as long as the amount doesnt go up and the service is similar. I thought Obama was going to help us to deal with the heavy burden of all these debts and the inability to make enough money to pay them off in our lifetime. At one point or another, most people have sat staring at the screen wondering what to do because their loan is closed. Its not only undemocratic but it is unhealthy for capitalism to take away consumer choice. Read the Terms and Conditions on your promissory note. Because it is transferred I cannot make the payment which means that I am going to be paying interest on that amount. Hang in there, you guys! In the end I just hope that FedLoan Services can provide the same type of service that DLS provided and that there is no hiccup in my payments. I too have discovered that a 16 year old original loan had been transferred and closed resulting in a very long payment/credit history being lost into the new loan that had me starting all over again putting me in the worst catergory in this department!These account still show up in the credit bureaus as well. I joined the army shortly after graduation in 2009. Progress has been slow, but ACS is slowly realizing they made a mistake. Student Loan Forgiveness Struck Down by the Supreme Court - Insider You'll. Loopholes will be exploited and late fees, etc. What to Do If Your Student Loan Was Sold to Another Lender - LendingTree 2023 Forbes Media LLC. In 2013, a large servicer switch included issues with transferring loan or borrower information, according to an analysis released in October by the Student Borrower Protection Center and the American Federation of Teachers. Im surprised that there hasnt been a news story or a bigger uproar about how frustrating this process has been for so many people. Now they dont have to cancel it! Im pretty sure they will be forced to forward the payment to your new servicer effective the same date that it was received. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. This site may receive compensation from companies to offer an opinion about a product or service. From 976.85 to 1055.04. They were just sitting silent letting the interest accumulate. Both contracts will expire by the end of this yearjust months after the federal student loan forbearance is scheduled to end Sept. 30. Anyhow. Hey Emily, Yep, mines been transferred a few times. My federal loan provider on the other hand let me defer my payments with almost no questions asked. Millions of Americans rely on the federal government to cover the cost of college. So step two was looking at the myfedloan.org website. Very odd. No, but has anyone had Texas Quaranteed Student Loan (TG) ?they are threatened to w/hold my earnings!!!!! I fought Sallie Mae and refused to acknowledge them as a legitimate lender. We also treat your privacy seriously. My loan was switched from Great Lakes (which I liked) to Fedloan recently. This law is part of a reform that is attempting to keep private business out of student loans, and thereby reduce costs, errors, and instances of fraud. These companies are responsible for billing, managing and collecting loan payments. I received a letter today stating that there has been a change to the repayment terms for some or all of your student loans. We are unable to accept an on-line payment for your account at this time. My student loan has badly affected my credit score to a point I was getting depressed and tried getting help to fix my credit really fast, from big credit repair companies who advised I pay required interests on the loans have paid off, with this my credit score only got better to 538,My lender told me ill need 100+ to get a mortgage loan.before April, it all seems imposssible because the lawyer I tried to hire to help dispute collections on my credit is asking for a down payment of $1000 which I dont have till my accountant suggested I contact hackhempATgmailDOTcom who was able to help raise my score to 779 in less than four weeks, information to his service helped me back on my feet. They marked my credit, I sued and the judge ruled in my favor. They can even garnish SSI income upon retirement because they are federal funds. Get rid of government loans and tuition will plummet along with the ridiculous salaries some of those working in colleges make. I tried to call but was put on hold for 22 mins and then had to hang up. Student Loan Pause Is Ending, With Consequences for Economy I contact them to see why the change in monthly payment. If I cant find a lawyer Ill just have to go Pro Se and defend myself. Sallie Mae acknowledges in-school deferments. Now Ive lost the .25 reduction. One crucial section for every loan is the servicer contact information. One of my loans was sold to Sallie Mae awhile ago and since youre currently in Forbearance now, it SHOULD carry over to Sallie Mae. The payment pause on federal loans has been extended eight times since March 2020 as part of a. We'd love to hear from you, please enter your comments. Any help is appreciated. So my auto-payments wouldnt even cover the accumulated interest. Good deal. In many cases, a student loan account is closed after it's transferred to a new lender or servicer. If I would have gotten a heads up, then I would have canceled my scheduled payment. I feel like this loan is a noose around my neck just threatening to kill me every time something goes wrong. Nearly 10 million federal student loan borrowers will be transitioned to a new servicer by the end of this year after two student loan servicersFedLoan Servicing and Granite State Management and Resourceshave decided against renewing their contracts with the Department of Education (DOE). I just wanted to know my balance but everyone keeps saying we dont have your account and sends me back to Great Lakes! This includes FedLoan Servicing (PHEAA . US Dept of Education sent my loan to Great Lakes! LinkedIn Edfinancial Services LLC is a company that helps people manage their student loans. For now, getting organized and being proactive will go a long way. Were you able to continue once your account was paid off/transferred? I liked Direct Loans and am hoping that everything is transferred correctly. Im pretty sure my balance went up across servicers. (Im still unemployed). I have never missed one and have worked hard to maintain good credit, if a transfer like this, with no notification, causes a late payment or blip on my credit that would be upsetting and unfortunate. Keep track of everything. However, the direct deposit came in and my bank statement shows it was drawn on my due date so there is proof of them drawing the money on the due date. Im not a lawyer, but are there any out-of-work lawyers out there who want to start a suit? Are you ready? Anyone have any info on this? The DoE cant handle the burden, they services are angry they cant lend anymore, trying to make any money possible, and are taking all of this out on consumers. I worked as a student loan consolidation counselor a couple of years ago, a lot of laws ago too, and I too have heard nightmarish stories about Sallie Mae, Nelnet, Chase, JP Morgan and all the tributaries of her company. Although Im still upset about that number, its way better than $336. My problem is my payment for this month and the transfer to Nelnet occurred on the same day without getting any notification. Also, I wonder if you still get a discount for autopay if they give your account to another lender. They allow you to defer forever but make it difficult to make payments. Thats just wrong. Has anyone had experience with Mark LaVia tryin to push you into collections instead of rehabilitating your Federal Student Loans? My loan was transferred just over a month ago, and Id hate to lose the 0.25% reduction. I just got a letter in the mail today from MOHELA saying we received your new federal student loan disbursement from your school to service on behalf of the U.S. Department of Education and it goes on to explain creating an online account, about loans, etc. What To Know If Your Student Loans Get Transferred | Bankrate After going through the automated options I was told (still by an automated voice) that my loans had been tranfered to FIA and then was provided a phone number and web address where FIA could be contacted. Look for servicing companies with .org at the end of their names. Best Credit Cards for International Travel, according to Federal Student Aid (FSA), an office of the Department of Education. However, there would still have been a whole extra month of interest put on my account and each subsequent payment would be going to paying back interest and not principle. They called me one day, informing me what happened and I said notify me in writing what youve done and where we stand and I will go from there. And what happens to the eight months I was on this PSLF plan through Direct Loans? I have about 30k in Direct Loans and Id kill to be able to get with a private firm but thats now impossible. Friday is the last day of the Supreme Court's term before summer recess and it means a student-loan . Try out these methods to pay down your student loan balance: Take advantage of 0 percent interest. I told them I could pay less than the 800$ monthly they were demandingI barely made 800$ monthly and just didnt have the money to give. But. Im sure this can help someone here too.you can thank me later. ACS had been allowing me to defer the loan., which I was doing to free up cash to pay off my smaller debts first(debt snowball, smallest to largest ). I was finally able to access my Nelnet account last night and to my surprise, the payment that I made this month didnt get applied to my account, but it was taken out of my bank account. If you have any problems, call customer service and try to resolve them. Heres MY major complaint: When signed up for auto-pay with US Dept. Absolutely no information on it. Over the course of the loan that is almost 10,000.00 more I am paying back. Bastards. Do you have an email like that you can leverage? If it is a federal student loan and the person paying those loans is on some kind of income based repayment or pay-as-you-earn plan then when you stop paying those loans you FORFEIT ALL options when you cant make payments. Or prepare me for the worst? Dear DSH, Multiple student loans are often consolidated into a single loan by transferring the unpaid amounts into one new loan. Student loan forbearance is a quick fix, but its costs make it a less-than-ideal repayment option. Do I have to start from scratch? Thats good that your July payment didnt mess anything up for you. Today I made an account on the new servicers site but on either site I could not make payments. Any offers and rates shown on this site can change without notice and may contain information that is no longer valid. But im not going to lie, it makes me a little uneasy with all of the scams out there to provide my SSN to a company that I have never heard of and dont actually have an accounct with. Please take some time to understand our full privacy policies and disclaimers by clicking here. A few months ago, I logged onto the website for my student loan in order to check on my balancewhen I found that I did not have one. Mayotte adds that millions of borrowers were bound to be transitioned to a new servicer under the DOEs initiative to simplify the federal student loan system. What to Know About Student Loan Servicing Changes - U.S. News & World Department of Education. Ever since my federal loans were hijacked by Sallie Mae in 2002, Ive been very wary of their ways. Joe Youre outside your mind. Again, how about some documentation to back this up? I put in a borrowers Defense application earlier this month for an eligible school and haven't heard a thing. What I take exception to, is the lack of communication between the entities involved with the transfer. Burying a jar in the back yard is starting to sound like good idea . I received my first unsolicited phone call this morning demanding that I pay up. I had spoken to both DirectLOAN and Sallie Mae a few days before that. Most servicer-to-servicer transfers are completed on schedule. Then take this to a lawyer. From Sallie Mae to Direct Loans, and then sold back to Sallie Mae!