If you’ve been following this blog over the past couple of months, you’ll know that the Dept. of Education has recently contracted with several private companies to service Direct federal student loans. These contracted servicers have been causing many problems for borrowers, including bumping people off of Income-Based Repayment and messing up Direct loan consolidations.
The Dept. of Education also recently created a new certification form for borrowers working in public service, so that borrowers can periodically provide a record for the Dept. of Education that they are on track to obtain Public Service Loan Forgiveness. This is great news for public service borrowers.
I have recently confirmed that borrowers who submit their Public Service Loan Forgiveness certification forms will have their loans re-transferred to a specific federal contractor, the Pennsylvania Higher Education Assistance Agency, which runs the website www.MyFedLoan.org. Although I have no way of actually measuring this, I have heard from several borrowers that MyFedLoan is a relatively smoother system than that of MyEdAccount and some other servicers. I’ve also heard that their customer service tends to be a bit better. So, this might actually be a good thing. Either way though, you won’t have a choice. Once your Public Service Loan Forgiveness certification form is processed, you’ll see you’ll loans disappear from whatever servicer they are currently with, and then you will be contacted by MyFedLoan (or you’ll just see your loans re-appear on that site).
Fun times in the world of federal student loans, no? It’s a roller coaster of excitement, really.