The Department Education works with only a few designated companies to service federal student loans that it holds (ED-held loans). Over the years, the Department has changed the loan servicing companies that it has worked with, and some current loan servicers are in the process of ending their work with the government. Your loans may be transferred to a new loan servicer as this process is completed.
Additionally, in April 2023, the Department announced that in order to make things easier for borrowers, it will only work with the following student loan servicers to service loans beginning in 2024: MOHELA, Nelnet, EdFinancial, Maximus Education, Central Research, Inc. Because of this, your federal student loan servicer may change over the next few years.
The Default Resolution Group will continue to service student loans in default that are held by the federal government.
Make sure that your contact information is updated on your studentaid.gov account, so that you will get important notices about any loan servicing transfers. The transfer will not cost you any money and should not impact your credit or loan balance. You will get an email or letter from your current loan servicer about the transfer before it happens and a welcome letter from the new loan servicer after the transfer happens.
If you have any problems with the loan transfer, you can contact your loan servicer or file a complaint with the Department of Education.
