. As a result, FedLoan will continue to service many federal student loan accounts well into 2022, and it will also continue to administer the PSLF program.
By the end of 2022, the Department will transfer borrowers whose loans are serviced by FedLoan Servicing to other Department of Education servicers such as MOHELA, Nelnet, or Great Lakes Higher Education. Unlike Navient, FedLoan Servicing only handles government-held federal student loans, so all FedLoan accounts will eventually be transferred to new loan servicers by the end of next year.
Still, student loan servicing changes have historically been disruptive for borrowers. In a report issued after the Department’s last major servicing overhaul, the Consumer Financial Protection Bureau found that “servicing transfers can create confusion,” and “when errors occur during servicing transfers, commenters note that this can affect every aspect of the student loan repayment process, leading to problems.
Department officials have sought to assure borrowers that this time, the servicing transfers will go more smoothly, but they are still urging borrowers to prepare. Borrowers should update their contact information, save and retain key student loan records , and review and update their auto-debit information, which may have to be confirmed or renewed following a loan servicing transfer.