You might not realize your student loan servicer — the company that handles your student loan payments — is full of information that can help you along your loan repayment journey.
Sometimes people are afraid to contact their student loan servicers, especially if they are having trouble making payments. But the truth is calling your student loan servicer is actually your best bet for getting helpful information you need about your student loans.
Your student loan server should be able to help you if:
- You want to make your very first payment.
- You want to lower your payments.
- You are having trouble making your payments.
- You want to pay off your student loan early.
- You have questions about going back to school.
They can also help you with more obscure questions and can even give advice about student loan consolidation and refinancing.
As always, do your own research, and don’t be afraid to challenge the person on the phone if you’ve read conflicting information. The point is to get the best, most accurate information about your student loans so that you always make your payments on time and will be on track to pay them back effectively.
Here are some examples of questions that can lead to helpful answers from your servicer:
Questions to Ask Your Student Loan Servicer
- How can I lower my payments?
- When is my first payment due?
- I want to go back to school. How will that affect my student loan payments?
- How do I consolidate my student loans?
- What is the difference between consolidating and refinancing student loans?
- I’m having trouble making my payments. What happens if I miss one?
- How do I prevent default?
- What are some examples of personal hardships that would qualify me for forbearance?
- What should I do if I lose my job?
- What is my interest rate?
- Is there any way I can lower my interest rate?
- Is there any benefit to automating my student loan payments?
- Is my contact information up to date?
- I got married and changed my last name. How do I change my information in your system?
- How much will it cost if I want to pay off my student loans completely in the next 10 days?
- How do I know what type of loan I have?
- I can’t live on my current student loans. How do I qualify for more?
- How long is my grace period after I graduate?
- Do I get another grace period if I go back to school and graduate again?
- When will I receive my loan refund check?
- What is the benefit of paying interest on my loan while I am in school?
- Do I qualify for income-based repayment?
- What benefits will I lose if I refinance or consolidate my federal loans into a private loan?
- What is the best way to pay my student loan bill?
Student Loan Servicers Exist to Help
Your student loan servicer is definitely there to help you. Sure, it needs to collect money so the company is paid — that’s a given. However, it’s job is also to help you understand your repayment options. After all, your student loan servicer would rather get a lower payment than no payment at all.
Still, many people find it difficult to call and ask questions on the phone, especially if they are dealing with financial hardship. However, those who have been there before admit that once they called their student loan servicer and ask for help, they felt an immense sense of relief and wished they’d called sooner.
I had personal experience working with a student loan servicer when my husband and I wanted to send back $13,000 of his medical school loans. I’d recently received a promotion at work with a large pay raise and we didn’t need all of the money we were awarded that semester. Our student loan servicer contract said that we could return the money within 90 days and no interest would be charged on it.
It took a few calls to confirm we could send the money back penalty-free. It was such an uncommon practice to send money back early that not everyone at the company was aware of the rule! However, we were eventually able to send it back, and we felt so great about it.
Problems With Your Student Loan Servicer?
If you call your student loan servicer and find they aren’t helpful, write down the name of the person you spoke with as well as the date and time. The Consumer Financial Protection Bureau is currently gathering information on student loan servicers that have not been helpful to students.
Most servicers should be able to answer your questions accurately, but you should still be your own advocate. Research your question in length before calling and ask lots of questions. It’s a good idea to have a positive relationship with your servicer and be polite on the phone so they will be more likely to help when you need it.
Asking for help isn’t always easy, but when you get the answers you need, you’ll be so glad you did.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|