FedLoan Servicing Review

FedLoan Servicing, also know as My Fed Loan is a government sanctioned program established to help manage student loans owed to the Federal Government.  Is FedLoan Servicing legit?  Is FedLoan Servicing real?  The following is my review of the company.

What is FedLoan Servicing?

The Pennsylvania Higher Education Assistance Agency (PHEAA) manages federally-owned student loans and helps consumers find easy way to repay back loans to the Government.

It’s recommended to use this ONLY as a last resort.  The following options for student loans forgiveness are better options.

When dealing with a government recognized function, you will have no recourse if there are any errors.

Although FedLoan won’t help reduce your interest rates and interest like the above student loans forgiveness programs, you will at least be able to use different repayment plans to help you make monthly payments.

Fedloan Payment Plans

There are many kind of student loans help that FedLoan offers including:

  1. Income Based Repayment Plans – Assuming you are even employed, this is a good option to start paying down your government student loans debt.  You get a fixed duration during which you can pay back the loan in monthly payments.  This plan assumes you’ll be working for the next 5-10 years, and you can make back payments that way.
  2. Standard Repayment Plan – You make fixed monthly payments over the life of the loan.
  3. Graduated Repayment Plan – You start off lower and you increase in amount every few years.  This plan assumes you will be getting a salary increase in your paycheck over many years, which will go towards your college student loans.

If you enroll in FedLoan Servicing’s Direct Debt, you will get a 0.25 percent interest rate reduction every month if you are qualified.  This is to decrease the chance that you will make late payments and also gives them direct access to your bank account for debit.

Repayments can be made at their website, through their app, or by mail.

Criticisms of FedLoan Servicing

While a majority of borrowers have no issues with FedLoan, there are some people who criticize the company of being rude and inconsiderate.  This is common among companies employed by bureaucratic workers and are not financially motivated (think, DMV).  So do not expect much as they are doing you a favor.  Note, they are not accredited by the Better Business Bureau, but it doesn’t matter when you are doing business with the government and one of the few official and recommended options providing loans repayment help.

These are additional issues students are facing:

  • Receiving inconsistent responses from different reps (be very careful and make sure to get any agreed details in writing)
  • Being put on plans inconsistent with what you originally agreed to (double check your contracts again)
  • Not being explained very carefully how the repayment plan works

FedLoan Servicing Phone Number

Finding their fedloan servicing contact is not the hard part.  In the event you need to reach their help line.  Their toll-free number is 1-800-699-2908.  Currently they are available 8 a.m. until 9 p.m. Eastern Standard Time M-F.  If you need to access your FedLoan account or FedLoan login, their website is https://myfedloan.org/.  There you can make fedloan payments as well.

FedLoan Servicing Scams

Be careful of any 3rd party companies approaching you claiming to bear the FedLoan Servicing name.  Always make sure to check back to their original website or ask to dial back to the proper phone line above and ask for the extension line.

We’ve received the following report from a user who wishes to remain anonymous on FedLoan:

“I did take out a big loan since I did not receive any scholarships or help from my parents.  Yet rather than filing bankruptcy and ruining my credit, I decided to go through FedLoan Servicing to help make payments back.

Unfortunately, there’s been so many errors with how my accounts were handled.  They’re a very outdated company, slow, and they lack any support.

Every time I call back, a different rep would pick up my case.  This lack of dedicated rep makes it troublesome.

There was one time where they didn’t receive credit for my payment.  I had to call multiple time and send ach debit proof.  This is absolutely unnecessary and I feel this is something we shouldn’t be facing.  Unfortunately they said my loan was in forbearance and that their system couldn’t process my payment.  I didn’t understand why that was the case even though I have set it up to be automatic debit.      

Be very careful before signing up with FedLoan Servicing.  I hope this story raises awareness so if you do decide to give it a shot that you are careful.”

How to get Fedloan Servicing to Fix Mistakes

You may be faced in a situation where FedLoan is not being helpful, or making the updates you require.  Since they are not a public corporation, they don’t have a strong financial incentive to help customers.  Since their employees are low paid, it’s hard attracting new talent. Therefore a big issue that may happen is that your issues may never get resolved.

Considering they will not take documents over email due to their outdated method of handling affairs, this is the way to rectify mistakes that happen.

Proof of Identity

-Marriage Certificate including a statement of how your updated name should appear
-Social Security Card
-Current Driver’s License or State ID
-Court order
-Unexpired U.S. Military ID -U.S. Passport or passport card -U.S. Certificate of Naturalization (Form N-550 or N-570)

If you wanted to change your name on the Loan, this is an example of the following name document proof that you may need to provide:
-Court Order
-Marriage Certificate including a statement of how your updated name should appear
-U.S. Certificate of Naturalization (Form N-550 or N-570)

This information may be submitted via fax to 717-720-1628 or via mail to the address listed below:

FedLoan Servicing P.O. Box 69184 Harrisburg, PA 17106-9184

Write your account number on each copy of document as well.

Sometimes the above steps may not work and you may need to resolve to more action.

If you are were mistreated or faced any questionable actions from the agency which you feel might be violating any laws, feel free to consult with one our list of recommended lawyers who can help you.

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