The United States is home to several loan servicing companies. Rapid population growth and urbanization drive mortgage and housing loan demand, driving the need for efficient loan servicing companies.
First up, FedLoan Servicing is a powerhouse that manages federal student loans. Its streamlined processes and straightforward tools make it easy to navigate.
1. FedLoan Servicing Loan Servicing Companies
FedLoan Servicing is one of the largest loan servicers, managing billions of dollars in federal student loans for nearly nine million borrowers across the country. It also manages the Public Service Loan Forgiveness (PSLF) program for Direct Loan borrowers.
While it is not a bad servicing company, it does not have the best reputation in terms of customer service. Borrowers often complain about long call hold times and unhelpful or misleading customer service representatives.
In addition to processing monthly payments, FedLoan Servicing also offers loan consolidation services. However, not all borrowers are eligible for loan consolidation. For this reason, borrowers should carefully research the benefits and drawbacks of consolidation before applying for it.
Another good feature of this servicing company is its ability to help borrowers apply for deferment and forbearance. It also helps borrowers with income-driven repayment plans, as well as provides details about refinancing and consolidation options. Another good feature is its mobile app for iOS and Android devices.
2. Great Lakes Educational Loan Servicing Companies
As the nation’s second-largest loan servicer, Great Lakes Educational Loan Services handles about 1 in 4 federal student loans. It’s also one of the most well-regarded, as it receives fewer complaints than Nelnet, FedLoan Servicing, and Navient.
Great Lakes is a full-service contact between students and their primary lenders, which are the Federal Government and private banks. It provides borrowers with a variety of options for repayment, including income-driven plans and deferment or forbearance. It also helps borrowers consolidate their loans and qualify for programs like Public Service Loan Forgiveness.
Even though Great Lakes has a long track record and is a servicer specifically selected by the federal government, it’s not immune to missteps. It’s currently involved in a class-action lawsuit for mishandling borrowers’ CARES pandemic relief funds. It’s also currently transferring its portfolio to Nelnet, which will be the primary servicer for most of Great Lakes’ clients once the transfer is complete. Borrowers will be notified of the transfer two weeks in advance. It’s expected to be completed by June 2023.
3. EdFinancial Loan Servicing Companies
Financial Services is one of the federal student loan servicers that works with the Department of Education to manage borrowers’ accounts. This includes processing monthly payments and providing borrowers with resources like the student loan calculator that helps borrowers see how their repayment options may impact their total debt over time. The company also offers special resources for borrowers in the military and even has a dedicated email address and customer service line for them.
It is important to keep in mind that borrowers can’t choose who services their loans, but they are allowed to switch loan servicers by consolidating their federal student loans into a Direct Consolidation Loan or refinancing them with a private lender. This may be a good option if the current servicer is causing problems for borrowers.
However, borrowers should be aware that the new loan servicer could experience issues of its own. For example, borrowers have reported that a new loan servicer has incorrectly reported their consolidated federal student loans as delinquent. If you have a problem with your loan servicer, it’s best to contact them directly and keep a record of the date, time, and name of the representative you spoke with.
4. CornerStone
Cornerstone offers several products and services that are designed to meet the needs of companies of all sizes. Its services include learning and talent management, HR technology and support, and consulting. Cornerstone also has offices in 12 states, providing clients with strategic government relations and lobbying services.
The company’s innovative Cornerstone certificate program has become a model for the national humanities community and serves as a way to revitalize the liberal arts in higher education. It combines the core curriculum with classes on themes that bring a new level of meaning and relevance to students’ major areas of study, while also helping them develop the critical thinking skills they need to become successful business leaders, industry experts, and civic citizens.
The overall experience with Cornerstone On Demand has been great. The product is user-friendly for employees and easy to use from an admin perspective. The Exception Reporting 2.0 tool is also very useful for compliance purposes. The team behind this software makes sure to keep it up-to-date and continuously improving, which is a big plus.
5. Missouri Higher Education Loan Authority
MOHELA, or the Missouri Higher Education Loan Authority, was founded in 1981 by state lawmakers to oversee federal student loans that were guaranteed by the government. It’s now one of the largest student loan servicers and administers a large share of federal loans, including those related to the Public Service Loan Forgiveness program.
MOHELA also services private student loans and manages the TEACH Grant program, which promises teachers, nurses, firemen, and police officers debt relief after a decade of work. The company is set to become the sole federal contractor to oversee those programs after the Education Department terminates its contract with FedLoan Servicing in 2022.
In recent years, MOHELA has been plagued with complaints from borrowers. Many of those have focused on the company’s inability to properly service student loans. Borrowers have reported hours-long wait times, errors on their online accounts, and refusals to honor requests for assistance with their loans. Those concerns grew even louder after the Education Department announced that MOHELA would take over PSLF administration from FedLoan Servicing in July of 2022.
6. Granite State Management & Resources
The company offers a variety of services to federal and private student loan borrowers. Its employees earn salaries between $77,754 and $100,654. The company is also responsible for managing the monthly repayment of students’ loans. In addition, it provides benefits for military borrowers, including interest caps and waivers. It also offers deferment, discharge, and forbearance options.
The servicer has a mixed reputation. It has received 19 CFPB complaints and 25 BBB complaints over the past year. However, these figures are lower than those of its rival, Navient.
The company has been in operation for more than 30 years and is based in Concord, New Hampshire. Its employees have rated the company highly for workplace satisfaction, according to reviews on CareerBliss. The company offers a variety of benefits to its workers, including health insurance and paid time off. It also assists in disasters, such as natural disasters and wildfires. The company also helps borrowers find the best repayment plan for their financial situation. It also helps borrowers with their credit reports by disputing inaccuracies.
7. Oklahoma Student Loan Authority
Founded in 1972, OSLA has been around for decades and claims to have serviced over 130,000 student loans. They manage two types of federal student loans — Direct and Federal Family Education Loans (FFEL). Borrowers can make payments online or by phone, set up automatic withdrawals from their bank accounts, and request deferment or forbearance options.
OSLA is the default servicing company for many borrowers and offers a variety of assistance programs for those who have trouble making their repayments. However, some borrowers have experienced difficulty working with them and have been unable to get their questions answered.
For example, one borrower reported that their online account showed they had multiple loans when they only had a single loan in their name. Others complained about being put on hold for half-hour stints or waiting days for follow-ups. Still, the company is relatively small and has fewer complaints compared to larger servicers.
8. HESC/Edfinancial
HESC/Edfinancial is another of the current services, although it doesn’t have as many CFPB complaints as Nelnet or Advantage. This could be because it has less complex loans than other servicers or it’s simply because borrowers haven’t complained much about this particular company.
Like the other federal student loan servicers, HESC/Edfinancial Services offers a variety of student loan payment options, including online bill pay, auto-debit, and phone payments. They also offer deferment and forbearance options as well as repayment plan changes and other assistance.
One of the main issues that borrowers complain about with this company is their aggressive debt collection tactics. One complaint specifically mentions calling the borrower’s ex-spouse and even their relatives in an attempt to collect on the overdue debt.
When you first take out a federal student loan, the Department of Education will choose which student loan servicer is assigned to your account. You can change to a different servicer, but you will lose the benefits of income-driven repayment and other loan forgiveness programs. The “Big Four” federal student loan servicers are currently EdFinancial Services, FedLoan Servicing, Great Lakes Educational Loan Authority, MOHELA, and Nelnet.
