If you have recently graduated from your college, then you might probably have a peak of student loan debt to pay off. Talking about the tuition fee, the average tuition for an in-state public university is $10,116 for the current school year, while Private colleges, on the other hand, are even pricier, with the average annual tuition being near $36,801.
And now as you are graduated, you have to now start thinking about repaying your loans very soon. As soon as the standard six-month repayment grace period is over, then your interest is also going to start increasing rapidly.
Therefore, in order to solve your concern and to help you make loan payments, the U.S. Department of Education automatically assigns you to a loan servicing provider, which is the financial company that is going to help you out and handles your loan repayments. We are talking about none other than MyFedLoan.
FedLoan Servicing is basically a federal student loan servicer that was established by the Pennsylvania Higher Education Assistance Agency (PHEAA) in order to support the U.S. Department of Education’s ability to service student loans that have been owned by the federal government.
Many of the graduates must have known about FedLoan Servicing very well as it has been helping them to make repayments on their loans, ask for help, as well as even potentially get student loan forgiveness.
FedLoan Servicing services comprises of two main types of federal loan programs that are FFELP and the William D. Ford Federal Direct Loan Program loans.
FedLoan Servicing services FFELP loans were basically sold as well as transferred due to the legislation known as the Enduring Continued Access to Student Loans Act (ECASLA), under which the U.S. Department of Education has offered to buy FFELP loans from third-party lenders.
FedLoan on the other hand also services direct loans that are provided directly through the U.S. Department of Education as well as don’t include third-party lenders.
If you are one of those who are searching to get more information on MyFedLoan, then you must read the following article until the end. You are perfectly at the right place as today with the help of this article, we are going to provide you major details regarding MyFedLoan. So, without wasting any time let’s get started….
What Is Myfedloan?
MyFedLoan is one of the best online platforms available for FedLoan Servicing, a non-profit student loan servicing organization that is mainly managed by the Pennsylvania Higher Education Assistance Agency.
As per the website of the agency, MyFedLoan was established in order to support the U.S. Department of Education’s ability to service student loans. The main objective of the provider is to help the students so that they can successfully repay your loans.
The U.S. Department of Education (ED) instigates federal student loans, but it’s loan services such as FedLoan Servicing that actually handle all of the repayments. This is the company that you’ll actually be paying.
Together with Nelnet and Navient, it is considered to be one of the big three for-profit federal student loan servicing companies. There was a fourth for-profit servicer, Great Lakes Educational Loan Services Inc., but Nelnet then later acquired it in the year 2018 (February).
There are also many non-profit federal student loan servicing companies in the market, but on the other hand, they only serve a small percentage of the loans of the borrowers.
In addition to that MyFedLoan also serves borrowers whose loans fall under the William D. Ford Direct Loan Program. No matter what you’ve taken out such as a Direct Subsidized Loan, Direct Unsubsidized Loan, Direct PLUS Loan, or else a Direct Consolidation Loan, your repayments can be processed on this single platform.
Also, borrowers who plan on working in the public sector as well as taking benefit of the government’s Public Service Loan Forgiveness Program (PSLF) are automatically paired with FedLoan Servicing.
How To Get Started With Myfedloan?
In order to get started with MyFedLoan, you have to first create an online account, which should only take a few minutes. For this, you just have to visit the MyFedLoan website and then click “Create an Account” on the top left to sign up.
After that, you’ll have to enter your credentials such as your personal information, which will include your name, Social Security number, as well as your account number in order to confirm your identity.
Because of the sensitive nature of student loan financial information, we will recommend you to use a strong, unique password for your account to avoid any further problem. So use a strong password just like you would with use for your online banking services.
As soon as your account is set up and you’ve logged into the platform, this is the time for you to brace yourself. Your loan amount is also automatically going to be populated in your account along with that you’ll be able to see accurately how much you owe.
www.myfedloan.org: Student Loan Servicer
www.myfedloan.org is the Official Website where you will be able to Everything that relates to your Student Loan. It is easy to start with MyfedLoan and you can do this either via the Desktop site or App.
when you are on the MyFedLoan Website you need to click in “Sign In” or “Don’t have an account – create one now” option and need to provide your Name, Email Address, Date of Birth and Account Number or SSN.
Create Username and Secure Password
The next step is to create a username and password for your account. make sure that the Username is one that you will be remembered and your password is very secure.
View and Understand your Federal Student Loan
Now you have to set yourself and look at your Loans and get understand. it will provide you all the relevant information which you need to know.
Select the Best Repayment Options
there are a couple of repayment options which you need to choose for your Student Loan and there is no ‘one-size-fits-all’ – choose the option which is best for you and your situation.
Student Loan Repayment Options With Fedloan
FedLoan Servicing provides many options for repayment, but it depends on the eligibility, these options are as follows:
- Pay As You Earn
- Income-Based Repayment
- Income-Contingent Repayment
- Standard Repayment
- Graduated Repayment
- Extended Fixed Repayment
- Extended Graduated Repayment
- Income-Sensitive Repayment
The Standard Repayment is where you will be paying back a fixed amount each month. this will be over 10 years if you’ve unconsolidated Loans and 30 years for consolidated.
A graduated payment is where you start with Lower monthly Payment that increases over time. This Payment option is good for those who will be earning more money in the future.
Extended Fixed Repayment
In order to qualify for this, you must have more than $30,000 in outstanding Direct Loans or FFEL Program Loans. there are fixed monthly Payments which is generally lower because the term is longer up to 25 years.
Extended Graduated Repayment
In order to qualify, you need to have more than $30,000 in outstanding Direct Loans or FFEL Program Loans. the Monthly payments are lower and increase over time and increase every 24 months until the loan is paid in full.
Income-Sensitive Repayment (ISR)
The monthly repayments on this plan will be based on your Monthly Income, but the minimum payments must cover the interest rate every month as a minimum. The Repayment plan may be extended by 5 years (maximum), and because it is based on your income and this can change, you’ll need to reapply every year.
Income-Driven Repayment (IDR)
This plan is based on your income, family size, and state of residence. As these change over time, you will have to recertify every year.
Unless borrowers select extra options, loans serviced by FedLoan Servicing are registered in the standard 10-year repayment plan. In addition, All Direct PLUS Loans are also eligible for income-driven repayment apart from Direct PLUS Loans made to parents.
One must also take note that not all FFEL Program loans are eligible for income-driven repayment. But, on the other hand, some may be eligible if comprised in a Direct Consolidation.
How To Make Payment And Repay Your Student Loans With FedLoan?
There are several methods for making Student Loans Payments with FedLoan:
FedLoan servicing can electronically withdraw your payment from your account every month. using the direct debit lets you qualify for a 0.25%interest rate reduction.
You can log in to the MyFedLoan Account and Schedule a Payment. you can also save your bank Account Information to make the process easier in the Future. If your due date falls on a weekend, make sure to schedule your Payment for the business day before your due date to avoid the late payment.
Using the Mobile App
You can Also schedule Payment from android or iOS apps. As with the online Payment, Schedule Payment early if the due date falls on a Holiday.
Pay By Phone
You can contact FedLoan Servicing at 1-800-699-2908 and schedule your payment for up to 60 days in the future using the automated service. make sure to have your account number on hand to verify your identity.
Pay By Mail
FedLoan Servicing will request you to put your Account Number, or Social Security number, on the check. You have to mail your payment at least five to seven business days before your due date to avoid late payments.
Using the third Party Pay Service
You are able to set up bill pay using your bank account or another third-party payment servicer.
Benefits of MyFedLoan
You can use MyFedLoan for following purposes:
- To make your student loan payments
- In order to develop a repayment plan
- Track the progress of your loan repayment
- To check if you qualify and apply for student loan forgiveness
- Receive documents for the student loan interest tax deduction
Contact FedLoan Servicing
MyFedLoan Servicing has its Contact Page which lists borrowers FAQs, along with answers. if you want to need a representative for help, you can do so in the following ways:
- You can Call at 1-800-699-2908 (or 717-720-1985 for international callers).
- The call center is open Monday through Friday from 8 am to 9 pm Eastern time.
- Sign in to your account and send a secure email.
- You can fax forms to 717-720-1628
The mailing address you should use for FedLoan Servicing address varies depending on what you want to send the company.
You can mail payments to:
Department of Education
P.O. Box 530210
Atlanta, GA 30353-0210
You can mail a Direct Debit application to:
P.O. Box 3661
Harrisburg, PA 17105-3661
Letters and correspondence should be addressed to:
P.O. Box 69184
Harrisburg, PA 17106-9184
Mail credit disputes to:
FedLoan Servicing Credit
P.O. Box 60610
Harrisburg, PA 17106-0610
Consolidation-related letters to:
FedLoan Consolidation Department
P.O. Box 69186
Harrisburg, PA 17106-9186
If you need to contact the Office of Consumer Advocacy:
Pennsylvania Higher Education Assistance Agency
The Office of Consumer Advocacy
1200 North 7th Street
Harrisburg, PA 17102
Frequently Asked Questions
Q: How Do I View My Loan Details?
A: Loan details through MyFedLoan are available online through accessing your account at MyFedLoan Website. The “Loan Details” option is under the left-side menu.
Q: What Do I Do after my grace period is over?
A: During your grace period (six months after graduation), you will receive a repayment obligation statement. This will provide complete details for each of your loans, explain the type of repayment plan you are on, inform you of your interest rate, and detail how much you owe overall and each month.
Q: Can I Change My Due Date?
A: Yes, you are able to change your due date as long as your payment is not late. With that said, you can’t change it right before your payment is due. (Nice try!)
Q: What if I Miss a MyFedLoan Payment?
A: MyFedLoan considers your loan delinquent the day after the due date. It is important to settle your account immediately to get back in good standing. If you are having issues paying your loan, be sure to call the lender before the due date for help. Missing payments will affect your credit score and becoming delinquent on payments for over 270 days will result in wage garnishment, tax refund withholding, and more.
Q: How Do I Get a Loan Verification Letter?
A: If you need a statement from MyFedLoan for a mortgage or other loan, you can find the “Loan Verification Letter” option under “Loan Details.” Again, this is located under the left menu in the Account Details section.
In this article, we have discussed many things about MyFedLoan to give you a clear picture of this great loan service provider. Hopefully, this information will be beneficial for you.