What Is a Loan Servicer and Why Should I Care?

Loan Servicer GraphicSo you took out a federal student loan and now it’s time to pay it back. I was in your exact position a year ago and even though I was working at Federal Student Aid, the student loan repayment process was overwhelming.

One of my first questions was: Why am I receiving federal student loan bills from a company rather than the U.S. Department of Education? If you have asked yourself a similar question, this may help:

What is a loan servicer?

A loan servicer is a company that handles the billing and other services on your federal student loans. The statement you receive in the mail is coming from a loan servicer on behalf of the U.S. Department of Education.

How do I find out who my loan servicer is?

To view information about all of the federal student loans you have received and to find contact information for your loan servicer, visit www.nslds.ed.gov and select “Financial Aid Review.” You will then be prompted to log in using your Federal Student Aid PIN, so make sure you have that handy.

Note: If you have multiple federal student loans, you may have more than one loan servicer, so make sure you click through each loan individually for information specific to that loan.

Why does it matter?

There are several reasons that being familiar with your loan servicer is important, including the fact that your loan servicer:

Moral of the story: Keep in contact with your loan servicer.

The student loan repayment process can be confusing, especially if you’re new at it like me, but your loan servicer is there to help. Make sure you stay in touch with them and use the resources they have available for you.

Nicole Callahan is a new media analyst at the Department of Education’s office of Federal Student Aid.


  1. It was my understanding that we were supposed to be getting rid of the middle man here, or was the President of the United States lying, I personally don’t want to pay a loan servicer to take my money and hand it to the dept of education, so you all please start doing what you are supposed to be doing, (what we the tax payer are paying you to do), so we are not charged extra on a high interest loan just nto make a payment, I’m a parent and I’m struggling to make these payments, and Sallie Mae getting a finger in the pie isn’t helping. Please cut out the middle man.

  2. I was informed that my repayment year will not change when I consolidated my loans. My fear is that my final repayment year may likely change now that I have two loan servicing companies in charge of my loans. I hope the Department of Education will put into place a monitoring system to make sure that these loan servicing companies do not prolong payment as a means of making profit through extended payment of interests.

Comments are closed.