School FAQ
- Where will my school's Put or Federal Direct Loan volume be serviced?
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Federal Student Aid (FSA) will attempt to keep Put loans with the current servicer, if the loans are currently being serviced by Great Lakes, Nelnet, FedLoan Servicing and Sallie Mae. Loans for the remaining servicers will be allocated among the four participating servicers by FSA. All volume allocations will be determined by FSA based upon performance of the servicers. It is possible loans from a school could be distributed to all four servicers.
- How will I know which students are with which servicer?
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Schools should access National Student Loan Data System (NSLDS) to determine the servicer for an individual borrower or work with the servicers to identify which students the servicer has on their system. Information will be reported to NSLDS on a weekly basis. Additionally, FedLoan Servicing will have reports available for schools to identify borrowers who are serviced by FedLoan Servicing. Schools will be contacted by FedLoan Servicing the first time loans are converted to our system to alert the school of their volume and discuss reports available to track your student population with FedLoan Servicing.
- How do I submit reallocations and refunds to for these loans, and what tools/options will be available to submit the changes?
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Returning Funds
There are several avenues available to schools that need to return funds on loans that have been purchased by the Department. The first is through the lender that originated the student's loan. Many organizations offer a service to their schools where you can use their website to return the funds and then the originator/lender will forward the payments to the appropriate Department servicer. Explore this option first. A second method is to access NSLDS directly and determine which of several servicers managing FFELP loans purchased by and Direct Loans originated by the Department is servicing the loans for which you are returning funds. You can then forward the funds directly to the servicer yourself.FedLoan Servicing School Refund Transmittal (17 KB Excel)
Loan changes
Schools will need to work with each of their servicers to determine the options available for performing reallocations and other changes to loan information. Please contact FedLoan Servicing at 1-800-655-3813 or email schoolsupport@myfedloan.org to discuss options for loans serviced by FedLoan Servicing. - What do I need to tell my borrowers and how do I make this process easier for them?
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One of the best ways to avoid student loan delinquency is awareness. FedLoan Servicing will be communicating with borrowers to ensure they are aware of the loans serviced by us and to make borrowers aware they may have loans with other servicers. We urge you to make your borrowers aware of their servicers, using the information available with NSLDS. All borrowers with FedLoan Servicing are encouraged to create an online account to manage their repayment.
Supporting Content
We're here to help
Phone:
1-800-655-3813
Email:
schoolsupport@myfedloan.org