FedLoan Servicing Review 2021

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FedLoan Servicing is a student loan servicer for federal and private student loans operated by the Pennsylvania Higher Education Assistance Agency (PHEAA), a nonprofit providing financial aid services and administering several state grant programs. PHEAA also operates American Education Service, a servicer for Federal Family Education Loan (FFEL) program loans.

If you’re unsure which servicer manages your student loans, you can find out by calling the Federal Student Aid Information Center (FSAIC) at 800-557-7394 or signing into your federal student aid Account Dashboard.

What Is FedLoan Servicing?

FedLoan Servicing is one of 10 loan servicers contracted by the U.S. Department of Education to handle those duties on its behalf. A student loan servicer manages the administrative aspects of a loan, from billing and payment processing to customer service.

FedLoan is the only federal loan servicer that handles Public Service Loan Forgiveness (PSLF) applications, which provide student loan forgiveness, and the processing of employment certification forms. Once your PSLF application is processed, your loans will be automatically transferred to FedLoan.

Certain payments can still qualify for PSLF before your loans are moved, but you may have to mail employment certification forms to FedLoan. Once you have FedLoan as your servicer, then you can submit your PSLF forms online.

Is FedLoan Servicing a Private Lender?

FedLoan Servicing isn’t a lender nor does it service private loans. It was established in 2009 by PHEAA specifically to service student loans owned by the federal government. The Department of Education chooses your loan servicer for you when your first loan is disbursed, so the company sending you a bill every month is your servicer, not your lender.

What Can FedLoan Servicing Help You With?

FedLoan Servicing can help you with anything having to do with repaying your student loan.

Access to your account – You can manage your payments online, update account information, get tax forms, and view billing and interest statements.

Repaying your student loans – You can set up Direct Debit, sign up for income-driven repayment, change payment preferences, move your due date, and pay ahead.

Applying for financial hardship programs – You can apply for forbearance and deferment, reduced payments, and federal loan consolidation.

Loan forgiveness – You can see if you qualify for loan discharge, teacher loan forgiveness, PSLF, and any benefits for service members. You can also apply for, track the progress of, and submit PSLF forms online.

TEACH grant management – TEACH grant recipients can submit their proof of service and track their service obligation requirements.

How to Make FedLoan Servicing Payments 

Direct Debit is the easiest method for making payments to FedLoan. When you sign up to make payments by Direct Debit, you can qualify for a 0.25% interest rate reduction. You can also pay through FedLoan’s mobile app, over the phone, by mail, using a third-party bill-pay service, or online.

To make a one-time payment by mail, send your check or money order made out to FedLoan Servicing to

Department of Education
FedLoan Servicing
P.O. Box 790234
St. Louis, MO 63179-0234

About FedLoan Servicing

FedLoan has been the subject of numerous controversies over the years, most notably its mismanagement of applications that led to 99% of all PSLF applicants being rejected in 2018. It has been in an ongoing lawsuit alleging that it provided inconsistent information to borrowers and failed to inform borrowers of their right to appeal mistakes. It also converted thousands of TEACH grants to loans for clerical errors and minor delays in submitting paperwork.

Loan servicers such as FedLoan are known for making suggestions that are in their best interest, not yours. It’s best to use a free third-party tool, such as LoanBuddy, to find the best repayment plan for you rather than relying on information given to you by your servicer.

How to Contact FedLoan Servicing 

FedLoan Servicing is known for having subpar customer service compared with other federal student loan servicers. Your best chance for getting a response is by logging into your FedLoan account and sending a secure message through the platform.

You can also contact it by phone at 800-699-2908, Monday through Friday from 8:00 a.m. to 9:00 p.m. ET., or by mail at:

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

Should you need to report a complaint, you can call PHEAA’s Office of Consumer Advocacy at (800) 213-9827 or submit a complaint to the Consumer Financial Protection Bureau.

Is FedLoan Servicing Your Only Servicer?

If you’re unhappy with FedLoan, it’s not your only loan-servicing choice. You have several options for moving your loans.

Refinance Your Loans

Refinancing your student loans through a private lender can potentially get you a lower interest rate, reduce your monthly payment, and help you pay off your loans early. It also changes your loan servicer. Investopedia has reviewed all of the best student loan refinance companies to help you find the right fit for you.

Consolidate Your Loans

When you consolidate your federal loans into one new federal direct loan, you can choose a new servicer. When consolidating loans your new interest rate will be the weighted average of your current loans rounded up to the nearest 1/8 of a percent.


Every federal student loan servicer has its share of complaints, so if you’re happy with FedLoan, there’s no need to look for greener pastures. If you’re unhappy, you can take advantage of refinancing or consolidation to find a new servicer.

Unfortunately, those enrolled in PSLF are stuck with FedLoan until their loans are forgiven or the Department of Education contracts a new servicer to handle those loans. Either way, if you keep meticulous records and submit all your paperwork early, you shouldn’t have much trouble dealing with FedLoan Servicing.

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