Student loans are an integral part of today’s education system in the United States, whether we want to admit it or not. Get independent and unbiasedstudent loan consolidation reviews on student loan repayment. More often than not, students lack the possibility of financing their education and require some financial aid in the form of a student loan.
A student loan servicer was born out of the need for coordination, guidance and overview over these loans – basically acting like a middle man between the student and the institution which provided the loan.
Functions of a student loan servicer
1. Managing payments
The student loan servicer is a private company which tracks your payments and makes sure you get them done on time. While your loan might come from federal funds, you’ll still need a servicer in order to pay your balances.
It’s best to set up an online account with your servicer as soon as possible, as your loan will be very easy to manage from there. The website will also contain lots of useful information regarding interest, late fees and procedures, which you should read and understand thoroughly.
2. Counseling on repayment plans
When you contract a student loan, you are immediately put on the standard 10-year repayment plan which divides your loan into 120 fixed payments.
If this is not the best option for you, your student loan servicer can help you choose another option, apply for different repayment plans and stay eligible for whatever help you will be getting during your college years.
3. Customize Payments
Even after you’ve graduated, the student loan servicer can help you organize your finance so you pay your most damaging loans first, like the ones who carry the largest amount of interest.
They can help you understand how to tackle your financial issues before they become extremely pressing and also come up with solutions to finish them before their term.
4. Process deferment requests
Your servicer is also responsible for counseling and managing deferment requests you make during a period in which you can’t pay your loans. They will also help you find out where and when you qualify for such deferment plans.
Finding a student loan servicer is easy on the National Student Loan Data System. Follow the steps they’ve listed on their website to get to know your student loan servicer as soon as possible, since a good relationship with this company can make the difference between paying your loans earlier and carrying their burden for many years.