U.S. Department of Education Loan Servicing
Today, more and more students rely on student loans to turn their dreams of college education into reality. The rising cost of tuition combined with an increased cost of living leads to many students taking out more than one loan. Then, once students graduate, they are left with massive amounts of debt and not the slightest idea of how to start paying back. In effect, an increasing number of lenders have now started using U.S. Department of Education loan servicing in order to make this process easier. A number of financial agencies, now responsible for collecting payments from students who have borrowed federal loans, are also using this system. Students should keep in touch with the relevant U.S. Department of Education loan servicing center in order to receive updates on their status and to meet all required payments on time.
Loan Servicing Companies
U.S. Department of Education loan service companies are assigned at the time a loan is issued by the U.S. Department of Education. To find out the loan servicer assigned to your case, log into the National Student Loan Data System (NSLDS) website. You may be required to enter your FSA ID in order to access information regarding your student loan, such as the loan servicer dealing with your account and repayment status.
The Repayment Process
Repayment involves meeting your monthly payments, which are sent directly to the appropriate loan servicer. In most cases, online payments are accepted and you can even set up weekly or monthly automatic payments through your bank account. If you want to change your repayment plan, you can always discuss it with your particular loan servicer.
Deferment and Forbearance
In this tough economy, a large number of graduates are unable to find work and if you are one of them, then you may find it hard to meet your repayment deadlines. With this in mind, it is important to get in touch with your Department of Education loan servicing company and to request a deferment or forbearance. Depending on your case, your request may be granted and the amount you owe may be reduced, or the payment period may be extended, resulting in lower monthly installments.
Under certain circumstances, you may become eligible for loan forgiveness. Contact your loan servicing company to find out more.