Effectively servicing a mortgage loan is critical to successful homeownership. If that is not possible, the servicer pursues a loan modification if the homeowner is eligible or explores an alternative to foreclosure, such as a short sale or deed in lieu of foreclosure. If a foreclosure is unavoidable, the servicer initiates the foreclosure process and manages the property until it can be appropriately transferred or sold.
Effectively servicing a mortgage loan is important for supporting successful and sustainable homeownership and includes the following:. For private student loans, look at your latest billing statement or check your credit report.
Searches are limited to 50 characters. Please do not share any personally identifiable information PII , including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature. Skip to main content. Student loans. Loan servicers also: Track loans while borrowers are in school Process payments Respond to borrower inquiries and information requests Accept applications and process changes in repayment plans, deferments, forbearances, or other activities to prevent default Maintain loan records Ensure the administration of loans in compliance with federal regulations and other legal requirements It is important to maintain contact with your loan servicer.
But if you're having trouble with yours, you might want to make a change. There are only a few ways this can happen. Choose a goal below to determine your best option. Servicers manage student loans on behalf of the federal government and private lenders. Your servicer will contact you after the first federal loan is paid out to you.
You can also use your online account to pay off the interest that has accrued before it capitalizes, or is added to your total balance at the end of the grace period. Six months after you leave school your first bill will arrive. But be sure you have enough money in your bank account each month to cover the cost.
Your servicer will place you on the year standard student loan repayment plan unless you pick a different one during your exit counseling session around the time you leave school. The standard plan breaks up your balance into fixed payments. But that may be difficult to afford if you have a lot of debt. If you decide to switch, your servicer will process your application and annual income recertification , which you must submit to stay eligible.
Once you start earning enough money to pay extra toward your loans, you might want to pay off certain loans first — like the ones with the highest interest rates, which will help you save money in the long run.
Contributing more than your scheduled payment will reduce both your overall balance and the interest you pay over time, so kick in a little more than you need to when you can.
Call, email or write your servicer a letter instructing it how to apply additional money. Otherwise they may apply extra payments toward your next month's bill. Call your loan servicer to let it know as soon as you can. You can apply for deferment or forbearance , temporary postponements of your payments during periods of financial difficulty. You may be eligible for student loan forgiveness if you work in certain fields for a period of time. Applying for a student loan forgiveness program could mean changing servicers.
The Public Service Loan Forgiveness program , for instance, forgives the remaining balance of your loans after you make payments while working at a nonprofit or for the government. Learn more about forgiveness options and how to apply. The Department of Education is planning to shift the student loan servicing landscape by signing new servicing contracts with five companies to eventually take over all loan servicing.
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