Millions of student loan borrowers will have a new servicer when payments restart

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A number of companies that serviced federal student loans for the government have stopped doing so. Here's what borrowers need to know.

Borrowers shouldn't have to do much during the servicer swap, Buchanan said.

Some will need to create an updated online account with their new company. "But the communications they received would have told them if they needed to take that step," he added. If you were enrolled in automatic payments with your servicer, which usually leads to a small discount on your interest rate, you may need to reenroll, Kantrowitz said.

You'll also want to make sure your new servicer has your latest contact information, he said, as these details might have changed duringAlso, Kantrowitz said, "whenever there is a change of loan servicer, there can be problems transferring borrower data. Borrowers should be prepared for the possibility of glitches."The pause on federal student loan payments is slated to finally conclude within months.

 

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