Fedloan servicing helping students towards success
Fedloan is basically a student loan service which collects all the payments of different loans and helps out all the borrowers with different alternative plans for payment for Department of Education. The Fedloan servicing also helps to make the Public Service Loan Forgiveness program. Fed loan servicing is popularly referred to as PHEAA which is the short form of Pennsylvania Higher Education Assistance Agency.
The Pennsylvania Higher Education Assistance Agency is basically the parent organization of Fed load servicing and they are also known for running American Education Services. The American Education Services right now is in charge of managing all the different private loans that are made under Federal Family Education Loan Program. Fed loan along with American Education Services cater to a large number of students applying for the student loan in the United States of America.
When students are in school studying they don’t need to make payments on their loan. Once they are finished studying they need to start repaying the loan. Even if students don’t need to pay installments while they are in school they always need to stay informed about the details of their loan? Students to sign in to fed loan servicing to get access to all the loan details. The fed loan servicing online tool will help students have all the details of their loan, check out all the inter traits that are available for them and many more things.
The life cycle of a Loan
- Taking the loan: This is the time when the student applies for a loan with all the details of what courses they want to take and how much money they want.
- Money arrives: This is the time when the loan money reaches the school and the tuition fee of the students gets paid.
- The school years: No payment is required since the student is still in school
- Grace period: This is a period after school where students need to look for jobs and they still don’t need to start paying
- Repayment starts: This is when the grace period gets over and students need to start paying monthly
- Paid Full: Finally, after months of paying the whole principal is paid with interest by the students.
How to pay students loan
The simplest way for students to pay their loan is by signing up for the direct debit which will automatically deduct the monthly payment from the bank account of the student. This process is hassle free and there will be no problem of late payment or miss the deadline.
If you want to choose direct debit, then all you need to do is create your account in Fed loan servicing website and register yourself with all the necessary details. You need to enter all your bank details on the website to complete the process. With direct debit, students will get a 0.25% reduction in their interest rates. You will get a confirmation SMS and mail on your registered email address that the process was successful.
Payment of down loans
When students sign up with direct debit they will get an option where the Fed loan servicing will deduct an extra sum of money every month. This sum of money will help to clear the loan faster for the students. If the student applying has good grades and have a steady income, then they will easily be applicable for a loan from all the private companies at a lower interest rate. This will help the student to get a short loan term and a lower monthly payment. This also has a disadvantage because students will miss out on all the benefits they would have received if they had applied for a federal loan. The most important benefit is federal loans is the loan forgiveness option if students work in public sector. In case if federal loans students can make monthly payments based on their monthly income which is not possible in case of private loans.
Understanding where to pay student loan
It is very important for a student to plan out their payment options. If students are able to pay more than they need to in a month then it will help them clear the loan faster. The student should always make sure that the extra money they are paying every month should be deducted from their principal and not made a paid ahead for next months’ payment. Generally, with Fed loan servicing if the students should always make sure the extra money they pay every month gets deducted from their loan principal.
Choosing your loan
If students have multiple numbers of loans in their name, then they should always make sure that they end up paying the loan which has the highest rate of interest first. Students should not make the mistake of paying the loan with a smaller amount and less interest, in the beginning, to get it out of the way because it will end up making the higher interest loan stay for a longer period of time increasing the interest collected.
Student loan help
Since it is practically impossible for the government to solve all the issues that have been faced by the students regarding their loan, the government have decided to hire companies like Fed loan servicing in a contractual basis to take care of all the customer service for them. Students can call the service whenever they want to if they feel that they will be missing their payment or won’t be able to afford their monthly payment. The Fed loan servicing will help students with what options they have for payment and with other details like for how long can they postpone their payment. Right now the standard payment per month for students is about 10% to 20% of their monthly salary.
If you are facing some issues with your loan or you think you will not be able to pay the next month’s bill on time, then all you need to do is simply call 800-699-2908 on weekdays from 8:00 am till 9 pm. Students can also reach out Fed loan servicing through email from their official website. Students need to at first research and figure out what to ask and once this is done they can simply contact the customer service.