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Prior to US President Barack Obama, Joe Biden offers two thumbs up. (Photo courtesy of SAUL LOEB/AFP/Getty Images… [+] Images)
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This story is still unfolding.
By the end of the year, you might have a new student loan servicer.
Here’s everything you need to know about it.
Today, one of the nation’s biggest student loan servicers made a major statement that might have an impact on your student loans starting next year:
FedLoan Servicing’s 12-year contract to handle federal student loans with the US Department of Education will not be renewed, according to Michael Stratford of Politico.
FedLoan Servicing, officially known as the Pennsylvania Higher Education Assistance Agency (PHEAA), is responsible for servicing student loans for about 8.5 million students, or around 20% of all federal student loan borrowers.
FedLoan Servicing is also the only student loan servicer that serves federal student loans for the Public Service Loan Forgiveness program, which allows borrowers who work for a qualified public service or non-profit company to have their student loans forgiven.
The existing contract with FedLoan Servicing will end on December 14, 2021.
Student loan servicers assist borrowers with managing their student loan payments, answering queries regarding loans, and assisting with repayment.
You can contact your student loan servicer at any time during the Covid-19 epidemic, whether FedLoan Servicing or another student loan servicer is handling your loan.

If FedLoan Servicing is currently servicing your student loans, you should expect a new servicer in December. This is especially crucial for any student loan borrower interested in public service loan forgiveness, a program that has been hampered by low approval rates of 2% or less for years, preventing thousands of students from receiving loan cancellation. Democrats have proposed five changes to the cancellation of student loans. The Biden administration is focusing on assisting more student loan borrowers in receiving loan cancellation via existing student loan programs, as well as simplifying and transparently repaying student loans. Among the objectives are increased accountability for student loan servicers and regulation of for-profit universities. Some people are asking the following questions in light of recent student loan updates: Is this a game-changer in terms of student loan forgiveness? The US Department of Education has yet to reveal which student loan servicer will be in charge of servicing existing federal student loans. Borrowers of student loans should continue to make payments on their loans as usual, if appropriate. Due to temporary student loan deferment, federal student loan payments, including those for the Public Service Loan Forgiveness program, are not required until September 30, 2021. There is no indication that your existing student loan servicer will change if FedLoan Servicing is not your student loan servicer (which is the situation for the majority of student loan borrowers).
ADDITIONAL INFORMATION FOR YOU
Despite the fact that federal student loan payments have been suspended, there is no certainty that this student loan relief will be extended. As a result, now is an excellent time to review your student loans and repayment strategy. What should you do first? Here are some common money-saving options:

Is this a game-changer in terms of student loan forgiveness?
Democrats propose five amendments to the cancellation of student loans.
The Supreme Court has denied the cancellation of student loans — here’s what happened.
Biden may prolong student loan forgiveness beyond September 30, but he faces a significant problem./nRead More

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