If you swim in federal student loans, chances are they’re serviced by AES-PHEAA, under the name of FedLoan. It’s good to know that each federal loan is given to a servicing company for collection and management. However, you don’t choose which one. This actually means that, even if you have to pay the department of education, that’s not where your money will go. Find out more at this source.
What Are FedLoan Student Loans?
Both FedLoan and AES are owned by a group called PHEAA, which was founded in 1963 to control the loans that come from the Federal Family Education Loan Program. Nowadays, they take about 31% of the loans from the U.S. Deptartment of Education. This means about 8 million borrowers and a debt of $300 billion. FedLoan was created in 2009 and it’s not a publicly traded company, but a nonprofit quasi-governmental agency.
What’s The Activity Of FedLoan?
FedLoan is the one in charge of sending bills, reviewing requests, processing payments and certificate borrowers for loan forgiveness. This company can also help you change your repayment plans. However, it will not be as easy as it might sound. FedLoan has received its complaints from graduates and school dropouts, but they’re doing their best to solve the mistakes.
Many of the borrowers use an online portal to communicate with the company. You can sign up there for direct debit, use a calculator to make a monthly pay plan or simply contact the customer service. Clients can get a 0.25% interest rate reduction for every qualified loan by entering an agreement in which they have their payments debited automatically from a qualified bank account. The company also has a mobile app for iOS and Android.
What Benefits Do They Provide
You can find pretty much everything on their official site: calculators, FAQ and articles and videos. It also partnered with a site called “You Can Deal With It”, which is full of tips for college students on how to manage their money. The team provides customer service support: calling, e-mailing or chatting online.
What Repayment Alternatives Are Given By FedLoan?
There are quite a few alternative that you have to pay back FedLoan. Depending on your income potential, you may have to adjust your repayment plan or consider refinancing student loans. In either case, planning ahead will allow you to make regular payment and stay current on the status of your loan over a 10 or 25 year period. Additionally, you can repay as a percentage of your income.
- Standard repayment: a fixed monthly payment for a 10-year period of time.
- Extended repayment: a fixed monthly payment for a 25-year period of time.
- Graduated repayment: for those who expect their income to rise in time. This comes at regular intervals on 10 or 25-year period of time.
- Income-driven repayment: for those who have a monthly payment that is covered at 10-20% of the borrower’s flexible income and the quality of loan forgiveness after 20 or 25 years.
If you’re confused, the site has prepared for you a tool, a “repayment schedule estimator” one, which is placed at the bottom of the page, and which can explain them in detail.