Over the years you’re paying off your student loan, and student loan servicers may change. Not because of anything that a student borrower has done, but because it’s just part of business. Here’s a few tips on how to deal with it:
Watch the paperwork
This is something a student loan borrower should be doing anyway, right? Borrowers should get a letter or email informing them of the change. It could be a notification from the old servicer or a welcome letter from the new one. If you aren’t sure who holds your loans, then use ionManage through your iontuition account.
Be proactive
Loan servicers can change for a variety of reasons. The “what now?” is more important than the “why?” The answer may be that loans are sometimes sold among servicers, or they might be transferred so all the loans are serviced by one institution. There may be other reasons too.You can do your best to find out, but what’s most important is to review all information (new and old) associated with your loans and ask questions. Hopefully the change is an easy-to-understand transition, but the reality is that you are responsible for on-time payments whoever your servicer is.
Make sure your information is up-to-date
During a transfer, there can be interruptions in receiving billing statements and messages. It’s a good idea to go ahead and set up a log-in with the new servicer once you’ve been notified of the change; and confirm your contact information and payment details. The information doesn’t always transfer, and not all servicers will accept the same payment methods. Some servicers may be fine with an automatic debit card repayment.This can help avoid any late fees.
Complain, if you have to
When you can’t get responses from a new servicer, it can be frustrating. You can talk with an iontuition loan counselor who can help connect you with representatives at loan servicer companies and work out arrangements. Your college’s financial aid office may also have contacts for your servicer who are more able to help. As a last resort, you can make a formal complaint to the Consumer Financial Protection Bureau.
For information about the beneficial student loan management tools from iontution.com, we invite you to watch this short overview. Like what you see? Sign up for your account here!
Tom Wray is all about the research, getting it right, and making it relevant. He’s got solid journalistic experience in all forms of content delivery – and he’s got his keyboard humming with what’s up and important for students, college admins, parents, employers and news junkies. Check out his weekly columns: Student Loans 101, News Flash!, Eye On School Success, Eye On Student Success and more. Follow me on Twitter at @Tom_Ceannate.