What Is a Loan Servicer?

A loan servicer is a company that manages your student loan on behalf of the lender or the government. It sends bills, collects payments, applies them to principal and interest, processes requests for deferment, forbearance or repayment plans and answers questions. Servicers do not usually decide whether you get a loan, set the terms or make the rules, but they are the main point of contact once repayment begins.

Federal and private servicers

For US federal student loans, the Department of Education contracts with several loan servicers. You are assigned one, and you may switch if loans are transferred. Private loans, from banks or other lenders, are serviced by the lender or by a company it hires.

What servicers do

• Send statements and payment instructions.
• Process payments, including automatic payments.
• Enroll you in repayment plans, such as standard or income-driven options for federal loans.
• Handle deferments, forbearances and discharge applications.
• Process forgiveness requests, where programs apply.
• Update your account with changes of address or name.
• Report to credit bureaus, as required.

How to find yours

For federal loans, sign in to your account on the federal student aid website to see the loans, balances and servicers. Private loans may appear in your credit report, which you can obtain free at official sources. Keep a list of all loans and logins.

Tips for working with a servicer

• Keep your information current, including email, phone and address.
• Set up autopay if available, which may offer an interest rate reduction.
• Read every notice, especially about transfers or changes.
• Keep records of calls, emails and confirmations, including dates and names.
• Ask for information in writing.
• Check that payments are applied correctly, to principal or interest as you intended.
• Ask about repayment options before you struggle to pay. Do not ignore the loans.

If something goes wrong

If you think there is a mistake, contact the servicer in writing, then escalate if needed. Federal borrowers can use the Federal Student Aid Ombudsman, and anyone can file a complaint with consumer protection agencies.

Related terms

See interest capitalization, loan forgiveness, cosigner, APR and dependency status.