FedLoan Servicing – The Worst Student Loan Servicer

FedLoan Student Loan Servicing LogoI just need to vent about my student loan servicing company – FedLoan Servicing. They recently took over a student loan of mine that was purchased by the Department of Education. Since taking over my student loan, I must admit that they are absolutely horrible. I have another student loan with Sallie Mae, and the difference in customer service and usability is incredible.  Here’s my drama with FedLoan Servicing, and why I feel like FedLoan Servicing is a scam.

The Start of My FedLoan Servicing Drama

FedLoan started off poorly in the fact that I had to re-sign-up for all of the direct debit and online statements that I already had setup with the Dept. of Education. To make matters worse, there is a lag time of approximately two billing cycles before my direct debit would kick-in. Also, my student loan qualifies for an interest rate reduction if I sign-up for online statements. Well, I lost the reduction, and had to re-gain it after the transfer.

FedLoan Servicing Delinquent Notice

Next, after FedLoan confirmed to me that my direct debit was processed and I have a confirmation letter stating this, their payment system does NOT process my payment. I log-on to my account, and there are big notices saying “DELINQUENT!” I call FedLoan, and the clerk is completely ignorant and rude, and refuses to answer any of my questions. I call back, and speak to another clerk, who tells me that FedLoan has all kinds of problems with their payment systems, and that this happens all the time. I finally have to get her manager on the phone, who basically admits this without actually admitting it, and fixes all my problems.

FedLoan Payment Processing and Direct Debit

Finally, I had a payment pending for 2 weeks before it was credited to my account. If FedLoan is a loan servicer, then why won’t it process my payment! Furthermore, they have a pay-ahead program, which they call a safety net, but it really makes it difficult and confusing.

For example, if you have direct debit on your account, you would expect your payment to be withdrawn each month. Say it is $200. Well, if you make a stand-alone payment of $200, expecting to pay down more on your loan, your direct debit will not go through, since you already paid the minimum. Therefore, you really didn’t make an extra payment. You then have to manually make another payment. How ridiculous. My mortgage debits my account the same each month. If I make an extra payment, it makes no difference!

Fedloan’s business practices are shameful, and what makes them worse is that they are contracted by the United States Department of Education!

Be Aware of Potential Credit Problems Due to FedLoan

Remember, FedLoan is a loan servicer, and so they WILL report any delinquencies or other issues on your account to the credit bureaus (Equifax, Transunion, Experian).  That can seriously impact your credit score.  What’s worse is that they could be reporting false information, because the error was FedLoan’s and not yours.  Realize that if FedLoan is telling you your loan is delinquent  they may have also told the credit reporting agencies, and that will harm your credit score.

That’s why I urge you to check your credit score!  I recommend you use a free service like Credit Karma to simply check you score.  They only give you one credit score, but that’s enough to know if something is wrong.  Plus, Credit Karma is truly free (you may have seen their commercials on TV).  The last thing you want is your credit score hurting your job prospects.

Get Away From FedLoan

Finally, if you are able to, you should look at refinancing or consolidating student loans with a lender other than FedLoan Servicing. You can do this in a variety of ways, but I would recommend starting with Credible. Credible is a “Kayak for student loans,” meaning you fill out one simple form and receive offers from multiple lenders on a single dashboard. Credible only works with high quality private lenders, who will be a lot easier for you to work with than FedLoan.

Continue The Conversation

We recently launched our Student Loan Forums. Are you have trouble with FedLoan or another loan servicing company? Stop by and share your story and interact with other members of the community who may be going through the same thing.

Read the Rest of the Story in Three Parts:

  1. FedLoan Servicing – The Horrible Saga Continues
  2. Why I Hate FedLoan Continued
  3. Getting Out From Student Loan Debt

Thanks for following along!  If you’re looking for issues with NelNet Student Loan Servicing, check out our post on NelNet Student Loan Servicing Problems.

Note: This post was edited to clarify the payment practices. There is a lot of misunderstanding surround this program.

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  1. Robert says

    Since posting this article, we have been receiving over 20 hits a day to check out this single post. The most common search is “Fedloan Servicing Scam”. I want to point out that Fedloan is a legitimate student loan servicer, but they have horrible business practices.

    I also want to commend Fedloan’s customer service for reaching out to me regarding this post, but it really doesn’t change the fact that their practices are not fulfilling the spirit of the recently passed legislation surrounding student loans.

    Here is Fedloan’s response to several of my points:
    “Direct Debit and Online Statements

    • jeff says

      Robert, I mean you no disrespect, but there is nothing decent about there practices. The more research i do the more i find out how they are deciving people.


        • Suzy says

          I am on board with this idea. I have contacted a lawyer about just this idea. I don’t have the technological savvy but would be willing to create the drive to this aim. I feel as though their behavior borders on criminal and they don’t seem to fear there is anything any individual can do to stop their practices. Please contact me with any new developments.

          • Gsteele says

            I agree will your suggestion. I am going through a similar scenario from the original post and would like to join with others in making a formal complaint to see if the Dept. of Ed. would rethink their subcontractors and non-profits they fund through federal grants.

          • Mary says

            I completely agree with a lawsuit. I have just consolidated my student loans and was setup with FedLoans. The company that consolidated my loans didn’t even give me an option. They setup me up with the most expensive payment plan and when I called in asking to change to another plan the representative advised me to wait until I received a letter, a letter that should be received within 2 weeks of the call, in order to make a one time payment of $25. This $25 payment would need to be made in order to change the payment plan that I was on. This agent continued to tell me that I would be on an administrative forebearance so I would be considered late or delinquent. So I waited the 2 weeks and called back just to be told that I would need to wait until that letter was received which should be received within 2 weeks. Well, needless to say, I never received the letter. So every 2 weeks for a total of 6 months I called FedLoans religiously. I documented each persons name and agent number along with the date and time of each call. So after 6 months of calling, I spoke with a representative who told me that I would never receive and I quote “this so-called letter because you do not qualify to change your payment plan”. At this point I was furious and demanded to speak with a supervisor. After being on hold for about 10 minutes, a person claiming to be a supervisor answered. While I was on hold, I happened to check my credit report through Credit Karma (as we are in the process of looking to purchase a home). I found out that throughout the 6 months of waiting to receive this letter and having been told by a total of 24 separate agents with FedLoans to keep waiting for this letter to come in the mail before making any payments, that each month FedLoans hit my credit report as being DELINQUENT which in turn completely damaged my credit score. So back to the so-called supervisor that I was on the phone with. She also stated that I didn’t qualify to change me payment plan because I didn’t make any payments and needed to make at least 3 consecutive payments in order to change the payment plan. She continued to say that she wasn’t sure why all 24 agents didn’t tell me that I didn’t qualify. I also asked her what happened to my administrative forbearance and she said that she never saw one applied to my account. I asked her to have all the negative information taken off my credit report being as though it was their error as to why there was no payments received within those 6 months. Now they wouldn’t change anything that they had done, now I have to make 3 payments of over $300 in order to change the payment plan that I was on. So now 3 months later and after 3 consecutive payments being made on the scheduled due date or prior, I am now being told that I was not able to change payment plans again without making a $540 one time payment. When I asked what this was for, I was told that was the requirement to change plans. I asked when this started as just 3 months ago the supervisor told me differently. This representative told me that this is the process in order to change the payment plan, that you have to make a one time payment. So again even the supervisors have no clue what they are talking about. Apparently, I never had to make 3 payments all I had to do is process a one time payment. Now even more angry then prior to this call, I ask to speak with the Director. Can you believe that this rep told me that he didn’t have a Director and that he could only transfer me back to the same supervisor I spoke with 3 months ago that gave me wrong information. So I agreed to speak with the supervisor and surprise, surprise, she wasn’t available. So I demanded that I receive a phone call the very next day prior to 10am when I went to work. It is now 3 days later and still no phone call. I am not sending a letter to the head of FedLoans Servicing. And if there are any lawsuits out there I would be more then happy to file suit.

          • Dumbfounded says

            I have also contacted an attorney, Morgan & Morgan, in Tallahassee, FL. They are looking into the possibility of a Consumer Protection Class Action Suit against FedLoans.

          • Cl Al says

            Hey guys . I am in with the lawsuit . This incompetent company has lied to me and LOST MYdocumentation various times!!! So my interests accumulates everyday . I could’ve had my payments set at lower amongst but given that I had to file my IBr application 4 times in a span of 6 months and then miscalculating my monthly payments to state I make more than what I am contracted to make ? Finally that was arranged after I talked to supervisor but now my payments will be higher and I still have to fight for other matters that I a, too exhausted to discuss at this time . I was going to make a public announcement to the future generations from my graduate school to NOT chose Fed Loan or to opt out in case they are set up without a choice.

            Please count me in . How can I get in contact with you all?

          • Kenya says

            Like many others, I too have dealt with these individuals at Fed-Loan and I would agree that they are, well to put it bluntly liars who ruin client’s ability to move on past higher education. It’s bad enough that you are provided multiple stories each time you contact customer service; however, even more concerning is that I am one of those individuals who was provided documentation for all my transactions and once I caught them in a mistake they made all they were willing to do was apologized and place blame on the U.S. Department of Education. I attended a school who lost their accreditation, one of only a few in U.S. history; however because I graduated with now a worthless degree (none of my credits transferred because the lack of sustenance to the program) I requested my loans be consolidated and applied for an Income based repayment plan due to my inability to use my degree to locate a better position. None the less, the US government sets up the plan so that students can have a grace period, which is very helpful in most cases. However, if you are trying to pursue a mortgage letter most places require your student loans to be in some form of repayment. Thus, my traumatic experience began. I was told that I could apple for IBR, which took applying twice to actually be approved. I was told by a manager once the 3 month process was complete that if I filed a waiver with Fedloan servicing that regardless of my school status I could not be taken out of the IBR. Meaning if I took a class one semester and not the next…nothing would change. At that time, my current school had not updated the National database with my last fall course. I advised Fedloan serving on multiple occasions of this information and was told multiple times oh that’s alright it still won’t change anything. In the end even after being approved twice to purchase a home, I have lost the ability to do so because of the multiple changes they continue to make. One minute I am approved and then as soon as Walden updated the course I took, they put me right back into in-school status which not only dropped my credit score tremendously, but also kicked me out of the IBR program. Furthermore according the website it appeared that all my loans had been consolidated but after the change now only 2 are consolidated. It is a shame that a company such as this is repeatedly allowed to dictate my ability to attain something I have worked years on achieving. Even more so, they never take responsibility for their actions, or lack thereof, always passing the buck back to either the school or US Dept of Ed. If a lawsuit proceeds please keep me informed because I have taken the last two weeks and searched for a lawyer willing to take on a challenge, however I have yet to locate one. Most people choose not to pay their loans or try to evade them. It shouldn’t be this difficult for a non-traditional student who takes courses when they can afford them to simple pay their loans back even if they are in school, or can’t take classes every semester.

      • Sharon says

        I’m just looking up blogs/sites where I can review FedLoan. I want to put a negative review wherever possible! They have destroyed my life in the sense of my future plans & lifestyle. They are inconsistent, unprofessional, and disorganized to say the least. I swore that I was reaching a fraud number when every time I called people were telling me different things. It seemed very odd. I called every month and spoke with someone to try figure out how to get myself on a doable plan. I asked every time if anything was reported to credit and what steps I could take to ensure this doesn’t happen. I would clarify with them every time and write pages of notes AND question what was being noted in my account. Well wouldn’t you know someone didn’t put a forbearance through properly and I got delinquent letters and even called to ask why and someone told me oh ignore those they are automatic but he forbearance will cover when kicks in. Wouldn’t you know!!!!! The night before turning in lease to buy a new car I called yes the night before the woman told me nothing was reported to credit and my account was confusing and she needed call me back after reviewing with a supervisor!! If they are confused then how am I not??!?!? The next day return my lease go to buy new car BOOM finance guys says denied my student loan reported me delinquent on all loans one month prior!!!! My credit was triple A before they destroyed my life!! I can’t get a car I can’t rent an apt, my fiancée and I were planning use my good credit for a house!!! Destroyed me! And no remorse! Not a sorry and in fact I have to request dispute and waiting to see if they deny or accept my claim to take back negative credit claim! meantime even IF they take off my credit is f*******!!! For a long time now! Please if anyone has insight how to come at this jerks to get my credit back tell me

        • Kenya says

          I understand your issues. They did something similar to me by removing me from my IBR plan and putting my loans back to in-school status even though I have not taken a course since Nov. of 2014. They just do as they please with no remorse and no one to hold their feet to the fire. Then when they do make a mistake they have a 100 reasons why they aren’t to blame. I have been calling lawyers in WV but no one willing to take on the Government. I plan to write congress and file a complaint with the US dept of Education.

          • CinCin says

            I’d like to join you in that. Still in the process of consolidating, they were automatically selected for me by FSA when I started the process and I’m currently almost in tears because I needed this consolidation done by a certain time which was way beyond their processing times and now a lot f things that are dependent on this being done are suffering. Their customer service isn’t the best, half will help, half will blame you.

          • B A says

            Hi Sharon
            They did me the same way. Told me not to worry, they dont report for 90 days, forebearance would cover any late. I tried to increase the limit on my credit card and found they had put 3 60 days out there (because I was waiting to consolidate into one loan). I called and asked why they had lied and they told me to dispute, forebearence would cover and 6 months later discovered it was all a lie. They are inconsistent, they make it up as they go along and will lie to you. I put in a deferment back in JUne called today, oh we didnt recieve it. Back in Jan, only put a few on the deferment and not all. Dont believe anything they say, and double and triple check anything deferments etc.

          • David Harris says

            Hi all,

            I am a class action attorney in San Diego, California, and I am currently investigating FedLoan Servicing for potentially wrongful practices in the servicing of federal student loans. If anyone here is willing to share their experiences with me in order to aid in my investigation, please feel free to contact me at djh@classactionlaw.com.



      • Kirk says

        Um, I did pay my bills on time and they marked me as delinquent and told me it was their error and that it would take 7-10 business days to remove.

      • Victor Teeter says

        Justin, you are partially correct! “YOU WILL NEVER GET CALLED BY FEDLOAN SERVICING.” Fined, YES. Put in delinquency, YES. Move your payments around and lose them, YES. Apply your payments arbitrarily to multiple accounts, sometimes to interest, sometimes to principle, YES. Deny you access to payments made over 365 days ago, YES. Send you a hard copy of where your payments went that a team of MBAs can’t comprehend, YES. But call, oh NO, they don’t do that. And they hope you don’t call them either!

    • Cindy says

      Yes they are they had duplicated my student loans. I owed 18900 and i checked my account the next month. Now I owe 37800. It’s been four months and they still have not resolved it. It also shows on my credit report. That I owe 37800. What can I do. Is there any legal action I can do.

      • Cyndi says

        I will say, I totally agree. FedLoan is a TERRIBLE service provider. I recently called to make an online payment, the automated payment service never asked me for my bank account information, then gave me a confirmation number like I had paid it already. What the heck?! What account is it coming out of? So I called to speak with customer service and they said they couldn’t tell me what account it came out of, but since it was after 4 pm, I had to email to cancel the payment and resubmit later.

        Another reason I hate FedLoan, everything has to be done in writing, change your name because you got married… opt in to direct debit… opt out of direct debit. It all has to be mailed. SO FRUSTRATING because it takes them forever to do anything about your request. I have another provider, Great Lakes, and you can do virtually everything with them in your online account without even having to talk to a representative. I LOVE them!! But I HATE FedLoan. It is not very user friendly at all!

      • Omar says

        Same here Cyndi! They’re shady on almost everything. And just today I received a letter stating a so-called “total repay amount” of 107,026. They told me dozens of times I owed just 44,000!!! Which still says on the letter, only now labeled as “current principle”. I am not nearly as smart and money-savvy as half the commenters on this site. I really don’t even know anymore. I wish for sweet justice to be meted out. I really just need help.

        • Amalia says

          I need help too! One of my grant was converted to student’s loan by an error and they don’t want to consider to change it back to grant. I had sent them faxes and called them several times but they don’t want to listen. If there is anything anyone can suggest me?

          • says

            If you’re not getting a response from them, contact the Student Loan Ombudsman through the Department of Education. Make sure you send everything as a certified letter so you have proof they received it.

    • says

      Oh yes, truly corrupt practices at myfedloan.org, however, it looks like they added a screen to their website, which lets you direct which loan you want to make a payment on, which is an improvement, since after I called them, and gave them a piece of my mind, which they didn’t like, so hung up on me! When I called them to make a payment on my son’s account, they reduced the newest loan! Now, why would they do that!!!?? And the rich keep on getting richer?! While us po folk get poorere?! Yes, exactly their idea! I told them that this doesn’t follow the rules that President Obama placed in effect for credit card payments, in that the payment should be applied to the oldest and highest interest rate loan, duh! They retorted back that it wasn’t a credit card, and I said what is the difference?! Hopefully, the future payments won’t be quite the hassle with their new screen! The next thing they need to improve on is the stating of the interest rate. Do you need to have a phd in physics to understand that?! No wonder students have difficult times paying off their student loans. They can’t get jobs that pay enought to pay-off their loans either, but that starts another subject!

    • Melissa says

      I replied to a government communication to consolidate my loans in February, 2012 and FedLoan Servicing is now my wonderful servicer. Several of my loans from ACS transferred incorrectly in April, 2012 to the orginal loan amount instead of the amount I’d already paid down. After speaking with multiple customer service reps requesting this be researched and not getting anywhere, I mailed FedLoan my old servicers’ statements with the correct balances. By July, FedLoan eventually corrected my loan balances incorrectly. Then I noticed another 10k loan was added to my account! When I inquired with customer service as to where this loan came from, they told me Nelnet, a loan servicer that I did not have a 10K loan from. I called Nelnet who said this account never existed with them. After talking to one customer service rep who actually had some professionalism, she sent me fraud paperwork and put that account into forebearance. I filled that out along with a required police report, had it notarized and sent it in. After not receiving any communication from them after this I contacted my congresswoman. One of her staff became my caseworker and has worked with Federal Student Aid to get this resolved with FedLoan Servicing. It turned out that the 10k loan was not actually from Nelnet, so I wasted a bunch of time filling out fraud paperwork and filing a police report. As of today (over a year since I requested my loans be consolidated) my balances are finally getting resolved. I will have to pay all the capitalized interest on the loan that didn’t seem to be mine. I recommend if you have any trouble at all with this servicer, contact your congressperson as soon as possible!!! This company has caused me so much stress and wasted time and money. Any lawyers out there think this might be a class action lawsuit of some kind?

      • Mark W. Freed says


        I think you should contact a few attorneys that here your case first before they charge. You know the type that only charge if you win. I think maybe a lawyer should take a look at all these comments. The only thing is most lawyers are scared to take a case that the government supports or is funding. Just like the school I went to Triangle Tech is funded by the government and then they turn you over to Fed Loans. You should take a look at the comments about the education they gave to all these students that was pretty much a joke if you ask me. I’m 42 and if I was paying $32,000 for my child to go to school there and know what I know now because I attended I woul be outraged. Also the point of my child wasting his or her time for 16 months. Then if I was the parent paying for and dealing with Fed Loans I would be even more upset. Just think when these students go out and look for a job. Their pararents just don’t know the big picture. They think since they paid that $32,000 dollar tuition that their chid will have no problem getting a job but that is not the case whatsoever. I put out over 200 hundred resumes and applications on the Internet and applie in person wherever I could and I was offered one Electrical job for starting at $8.00 an hour with my associate degree. What a joke. I can’t even pay my bills on that let alone my Fed Loans monthly payment. I don’t know how people are going to make it very soon. I would of been better of being an apprentice than going to school. Something should be done about a lot of things happening to us hard working people. I know how many people fileing for or on dissability that get around fine, can work and nothing is wrong with them and they are pratically living as good as you and I with no responsibilities. We should all stick together and do something about these things that are happening to us that we all know is wrong and not right when we think about it. We all know whats right from wrong . The way we are going it won’t take long that yoou will work just to eat and have shelter thats it. Its amusing how the government can go into such debt and has no credit limit. We though have credit limits and payments to pay on time or there is consecquences for us and none for them. We pay the consequences for their over spending and the same goes for Fed Loans mistakes it seems.

    • Tashawna Smith says

      WE really need to do something about this!! can we call a local news station? this is such as scam! I’m so upset – they took over my Sallie Mae and Direct Loans and sent me an email to make a payment. i couldnt create an account online and after emails and phone calls, 2 months later I got someone on the phone who said “please make a payment, you are 552 days late” what!? you’ve had the loan for 2 months how can that be? “oops sorry, that’s actually not correct” he said, right before he almost took my payment! wow – I can not believe it. This is a complete outrage!

    • Caitlin Hollis says

      FedLoan is an absolute nightmare. I have been attempting to get them to answer a simple question, and no one is able to! I am trying to have my loans transferred back to Sallie Mae. I am contemplating filing a complaint with the BBB. I want to pay on my loans and they are making the process very difficult, I’m nervous I will be in a situation like Tashawna mentioned above. Does anyone know how to switch lenders?

      • Kristin says

        I’m getting a personal loan in my name to pay off my husbands student loan at Fedloan, and they are offering a lower interest rate that the student loan.

        I filed a complaint today on behalf of my husband. To anyone who just needs to pay off their student loan and Fedloan actually has the “correct” amount, I highly recommend getting a loan from Lighstream.com or Earnest.com.

        I started the process today. I can’t continue to sit back and watch my husband get swindled out of his hard earned money. At this rate he will never pay of the loan.

        Pay off the loan and get away from these creeps. They lie, give false information and are super unethical. By the time they charge you all the interest fees you would have saved the time, the hassle and money with getting a loan from just a regular bank. If you have the means to do this (I do), which I know some people don’t (my husband being one of them) I highly recommend it.

    • new grad says

      Honestly I’ve heard the least amount of complaints by paying manually each month to any student loan company. I know it sucks but if its the only way to pay extra on a loan do it. It may help you out in the long run.

    • Michelle says

      Also keep in mind FedLoan acquired one of my accounts that I did not wish to transfer to. In the process they have somehow managed to ‘miscalculate’ my interest rate and of course the already complained Direct Debit issues. I have opened a ticket with the BBB to express my complaints.

      The rate it transfer at: 2.39%
      The rate they show: 2.350%
      The rate it should be: 2.14%

      They are shady and out to get extra cash flow. Watch things carefully.

    • Jeanne says

      I have been using Fedloan services now for 4 years. I have always paid on time and never had a reason to call them until August 2014. I was getting ready to pay my loan when I noticed my TEACH Grants were activated. So I called them and they said they were converted because I missed the deadline to prove I was a teacher still. I never received any letters in the mail to up date my status. Of course they say they were mailed but at this point we all know that’s a lie.

      Long story short I jumped through all their hoops even wrote a lie that said “I” missed up just to see if I could get a sympathy review. Finally after being ran around with false hope I was finally told by employee # 21917 that there was nothing I could do or could have done to reverse the outcome. A deadline is a deadline. By the way my “deadline” to not pay those loans just happened to be this year if I would have made the certification deadline last summer.

      I completely agree that this company needs to be looked at through legal channels. If I can be of assistance please contact me. With that being said does anyone know where I can go to consolidate away from FEDLoan Services?

    • Grisham says

      I agree, and am EXTREMELY disappointed in this program that I began paperwork to get in April 2015, and was just informed today (after I questioned only a $20 difference from what I paid under a different program). Rep said I was already set up in the program since 2009, so no other adjustments would occur on my account (I did not know that). I feel PUNKED!!!!!!!!!!!!

    • Dislikes FedLoans says

      Thank you for posting your FedLoan situation. I have a similar experience. I looked at my credit at Credit Karma today because I’m trying to get a car, it showed Fedloans has “closed” my account.

      Direct loans processed and qualified me for the IBR plan for all my student loans with U.S. department of Education. I got approved to pay 0% for my IBR due to my low income. U.S. Department of education’s Directloans program gave my loans to Fedloans to manage the IBR. Once FedLoans became the one managing my loans, they claimed I owed them $80.00 a month. I called Fedloans to fix their error. Fedloans told me they have no paper work from Directloans, that I need to call Directloans and get the paper to show my IBR was approved at 0.00 %. I Called Directloans they told me the problem is Fedloans, they should have my information about me being qualified not to pay anything in my IBR plan. I told Fedloans this information, based on my income, it made sense to this supervisor I spoke to so I thought the problem got fixed.

      Apparently for about a year Fedloans has been reporting me delinquent on my credit, and ignored Direct Loans decision that $0.00 is the amount I need to be paying. I have no idea what FedLoans means in my credit report that my account is closed. Fedloans closed my account at the end of July 2015.

      I started searching on the internet Fedloans and this article on “fedloan Servicing” came up at this “the college investor” website, this is my first time seeing this website or hearing about Robert Farrington. Where do I start to solve this issue? Does this mean I do not have a consolidated IBR plan anymore? Where are my student loans right now ? Before IBR plan I had my loans with 5 different lenders, will it go back to them ? What could be happening between July 2015 and August 22 2015 ?

      • says

        Go to StudentLoans.gov and login to your account. It will show you all your loans and where to find them. It will also show you what repayment plan you’re on.

        Next, check your credit report at AnnualCreditReport.com for free, and see what’s listed on there. You can dispute any item on your credit report that’s incorrect – so if the payment amount was wrong, dispute it and they have to prove it.

  2. stacy daniel says

    i am so glad someone posted their comment! they are the worst people i have dealt with! out of the blue they cannot with drawl money out of my account and had me for 2 hours thinking it was my fault and had me calling the bank several times and just giving me the run around, they have really messed me up big time! i have to shut down because of the stress and until they get it together i have no other option but to postpone my payments-they were rude! it is hard enough for me to make the payments and to have them cause me stress is not happening, they claim they can’t take it out of my account but didn’t have a problem with it the month before. And my payments were raised, which weren’t suppose to be raised and were suppose to take off the interest which was never done.

    • Ezekiel says

      that is true. What worse problem, I have been dealing with them for year an half before they charge me before I graduated my college

  3. Dustin KElley says

    not really the worst in my experience. theyve braught me current about 4 times without paying yet, i understand the crankiness with having student loans screw you over by transition though, tis poop

  4. Suzanne Baldwin says

    This is a scam for sure. I don’t think the Dept. of Education did their research about this company at all. I just got off the phone with FedLoan and I am just as upset as I was prior to the phone call with them. I have been making monthly payments but their website shows a payment date of 8/18/2010 everytime whether the payment was made in Aug., Sept, Oct. or Nov. it doesn’t matter it still displays 8/18/2010. Interest is calculated on the original loan amount (64 cents a day in my case) and the monthly payments that I have made are applied to the principal but interest is accruing based on the original loan amount with no regard to payments being made. A clear indication of this is that the Unpaid Interest was at over $50 when I knew that couldn’t be since for the last 4 months payments had been made. So, this company is a TRUE rip-off. This year has been a MAJOR MESS thanks to the mandated changes of who can administer student/parent loans. The loans were sent off to multiple companies and you have to question are these legitimate companies that say they now service my loan and I had no input as to who I am dealing with. Due to the inaccurate information provided on their online web page concerning our loans and the I would think illegal calculation of interest and ignoring payments being made, I am using a loan from another avenue to pay off this loan with FedLoan just so I can get rid of them and not have to deal with such a BAD company. Dept. of Education I HOPE you get your act together and research the companies you are farming out these loans to because so far this company really makes the Dept. of Education look very bad.

  5. duvexy says

    This company is practicing illegal and unethical practices by just charging me 164.32 for the interest without letting me know. I live below the poverty line and am disabled and I am upset about this. Heck, they give free tuitions to illegal immigrants yet harass me with financial abuse. There letter and their website is not credited by the Better Business Bureau, nor do they have disclosures on their letter heads.

  6. bert banayat says

    The government contracts with these junk companies to lower your score and to make you delinquent so they can garnish your wages.

  7. Jenn says

    Just got a statement from them saying I am two months delinquent, yet, my loan consolidator sends me a statement two months ago saying that all lenders have been paid off and I am good with the new consolidated loan. What IS it? Did the consolidator screw up or did NelNet? I have to sort all this crap out tomorrow and it’s really ticking me off.

  8. Michele says

    Glad to hear that it just isn’t us! I have paid it twice to no avail! I’m worried about turning it into a direct debit as I wonder if it’d actually work or not.

    Did the manager say how they fixed it? Or do they just like people to call again and again until they’re annoyed and irate with the lowly first rep you get?

    Thanks for the post.

    • says

      No, the manager could not say how they fixed it…and it’s not really even fixed. I had to call so many times, and it wasn’t until I posted it here on my site that it really got their attention!

  9. Sharon says

    TOTALLY AGREE. I have had nothing but problems with them since they bought my loan. The customer service people are rude (and just keep repeating the same stock phrases over and over, rather than having a conversation). I have had to re-defer every 6 months, and each time they come up with some reason to deny it a couple of times (thereby making it delinquent and charging me interest) before they allow it go through. There’s always some magic missing piece of data. They are a scam, through and through. The Dept of Education should be ashamed of themselves for working with such an disreputable company. Good post.

  10. ben says

    I just started paying my Fedloan students loans and noticed this:

    59% of my monthly payment is going to interest, 41% is going to principal. (That’s worse than the worst credit card.)

    For my (many other) student loans from other companies, my monthly payments always pay at least 75% to principal, and never more than 25% to interest.

    So I’ve emailed Fedloan to see if there is some mistake. If there’s no mistake, I will quickly throw all the extra money I can at the principal on my Fedloan student loans, and ensure that Fedloan gets as little interest out of me as possible.

  11. Cathy says

    Received a notice on 1/3 stating the Dept of Ed loans were transferred to FedLoans. Same day received a bill for the payment due 4 days later and was $70 more than it should have been. Called but could not get an answer as to why it was increased (the amounts and interest rates were all the same as with the Dept of Ed). Now, one week later I get a notice stating my payments are now almost $1000/month (December was $180 and January was $250). They changed the length of the loan from a 20 year graduated to a 10 year standard so that I know am supposed to pay it off in the next 2 years. When I called, I was offered to change to a different graduated plan that would be for the next 25 years. The idiot couldn’t understand why I did not want to extend the payments for another 12 years beyond what I had, not to mention paying the interest for all that time too. Told it was a “computer glitch” and he would put in a request for it to be corrected. I am not holding my breath considering they website also states the payment I made on the 5th online (for a 7th due date) has not been made and is delinquent.

  12. Adam says

    I need some help. I have been paying off my loan these past two months with nelnet but fedloan is saying I am 24 days past due on a payment and now have two payments due soon. Is this a mixup on fedloans end? Please help!

    • says

      You should call both FedLoan and NelNet. Chances are, FedLoan bought the loan, but NelNet never reported the payment. Make sure that you have your proof (i.e. canceled checks, bank statements showing the direct ACH, etc.). And good luck! Ask to speak to a supervisor, and maybe even record the phone call (easy with an iPhone). They may make you make your request in writing. Forward them all of your proof, and make sure you get it certified with a return receipt (it will cost you about $5.00, but that is worth not ruining your credit).

      Finally, contact the Dept. of Education and file a complaint if you are still not getting a resolution.

  13. Harold says

    Whenever the government gets included shit like this always happens. I read all your posts, and sincerely, I am completely freaked out. Why did my loans even went to that company, or even better yet, why did the department of education bought it in the first place? My loan was supposed to be with a Bank to start with!

  14. Cathy says

    Update regarding post #15. Originally talked to them on 1/10 regarding what they called a computer glitch. Talked to another rep on 1/18 and was told they are still working on fixing the payment issue. Just talked to a supervisor today (1/27) and was told that the payments were adjusted, but since it went through on their system on 1/25 and the February bill was printed on 1/18, there is nothing they can do for February. Here were my choices: either pay almost $1000 for February (the new correct payment is just under $200) or put in for a forbearance, which requires either payment of over $700 in accrued interest (based on their incorrect calculations) or capitalize that interest and pay interest on that amount for the next 12 years. Yet again, they still don’t understand why I am so upset. Further, I don’t know what I can even do about it other than bend over as I pay them $700 they should not be charging me.

  15. kwillis says

    Add me to this list. They cash your check and then digitally harass you with payment late/credit rating threats. But since my recent auto loan rejections, fedloan recorded conversations with reps since 11/24/10, a clear digital trail, bank records, loan statements and most of all a conference call between the previous lender and fedloan confirming the account balance and payments, we’ll be meeting in court. Should be fun. Pro se will never be so easy.

  16. Jamie Human says

    I could not agree more about how rude and unorganized this Fedloan Servicing company is. I was never informed that they were servicing my loan. They sent me a letter stating that I was delinquent on my account. I have not missed a student loan payment in years! I have proof from my bank that they cashed the check I sent them. The guy I talked to said even with proof it could take up to 90 days to resolve so in the mean time I would have to make my payment again to avoid messing up my credit. What a joke, they were so rude I just hung up the phone in tears. How can they legally do this?

    • says

      Thanks for sharing your story. You do have to continue making payments, but you don’t have to pay any extra interest or penalties until the investigation is complete. You should also call back and speak to a supervisor. All calls are recorded, and they can hopefully help you get this resolved. It is also important to document everything in writing and send it certified mail with return receipt (so you have your proof it arrived). It does cost a few dollars, but it is worth it to not ruin your credit.

  17. Bridget says

    My boyfriend is experiencing problems with this company as well. His loans went into repayment, and he paid the first payment online using his checking account with no problem. He has paid January payment 2-3 times and it keeps rejecting it. They have blamed his routing number, the bank, and basically made up a new excuse every time he has called. Whenever he makes the payment, he gets the confirmation number. He calls back a couple of days later and is told the payment has gone through. Then a week later, he gets a letter in the mail saying he is still delinquent. I know this is going to end up affecting his credit and it is ridiculous. He just got off the phone with customer service again and they have told them that some banks are now requiring a separate routing number for online payments. His bank is Wells Fargo, as is mine. I have never had an issue with online payments using the Wells Fargo routing number, so I don’t believe this story. Has anyone else had this problem?

  18. Wendy says

    ALL of my loans have been sold to FedLoan. What a nightmare! I only received notice that my Dept. of Ed loans were being serviced by FedLoan. They have screwed up every payment I have made to them; either leaving the payment hanging in limbo for 6 weeks and sending me delinquent notices, or crediting my payments to the wrong loans, and….you guessed it, telling me I’m delinquent. Did I mention that every time I call them they tell me my loan payment is a different amount? Or that they keep forgetting to sent payment notices? Or that they don’t have the 1098 Tax information for interest paid on my loans for 2010. I’m supposed to get that information from the previous loan server who tells me to get it from FedLoan.

    My kids have loans with SallieMae and they are every bit as bad, if not worse.

    Are there any college loan servicers out there that are doing a decent job?

  19. Brad Consoer says

    Fedloan bought half of my student loans from another institution. Shorly after the buyout we sold our house but where required to pay off the student loans directly at the time of sale. By mistake, the entire amount of student loan payoff was sent to fedloan who was more than happy to cash the check eventhough it was for twice the payoff that was owed to them. Since the payoff in Nov, I have spoken to several different people at fedloan who all acknowledge that they received and cashed the additional amount but can’t figure out how to cut a check to ME for MY money. Todays’ date is Mar. 8th and the last person I talked to, yesterday told me that the matter has to be referred to their “financial investigation dept.” which typically takes 30 to 60 days to investigate. I failed to mention that 3 wks ago, a representative lied to me by telling me a refund check was being mailed to me… didn’t happen!!! In the meanwhile the other lending institution that was to be paid off, in Nov., is patiently waiting for me to send the money that I can’t pry from the incompetent hands of fedloan. I am now requesting my 3rd forbarence from the other insitution so that I may protect my credit. AMAZING!!!! Today I am contacting a lawyer.

  20. pa ra says

    My son is going through an absolute nightmare with these people. They claim he didn’t pay the full amount, but of course, he did and made him run around finding our from his bank that FED LOAN made the error!! Now they tell him it is with their FINANCIAL INVESTIGATION DEPT and to just pay the “extra” and late fees and ONCE they fix THEIR ERROR, they will refund the money. YEAH<RIGHT
    MY Question–Is there anyone out there who wants to file a class action suit against this horrible company?

    • Aly says

      My story is also very lengthy about fedloan. I may be interested in being part of a class action suit. I am contacting an attorney today to find out my rights. Please keep me in the loop if you know of a class action suit starting.

  21. EMS says

    It would take me forever to share my full horror story with FedLoan, but I wanted to answer to the poster above-I would for sure be a part of a class action suit against them. Their practices are unacceptable. I actually came across this page while googling to find out if anyone had sued them before. It needs to be done!!!

  22. Lisa says

    My son is completing his 1st year of college. In this second semester he took about $5k in stafford sub and unsbusidzed loans. He anticiaptes taking more during his next 3 years of school. Two days after the school submitted for the loans, fedloan sent my son a letter advising they control they loans. I was hoping it was just a scam after reading all these negative posts. He’s got years to go before repayment. Can I hope that between now and then fedloan will get its act together? Sounds like online payments are the problem. Do they accept monthly checks sent by mail? How can these people be allowed to conduct business if they are so BAD?

    • Dave says

      I just got an email today notifying me that the government has put FedLoan in charge of my student loan that I just took out for going back to school this fall. I, too, thought it was a scam so I Googled them and found this post. I called the Department of Education to make sure it was legit and see if I could request a different loan servicing agency. The answer was basically “tough shit, you can’t change, and it’s no longer our concern.”

      Oh, and this was after the Dept. of Ed. had no record of me. The CSR told me it was likely because my loan was already being serviced by FedLoan. So, once they send off your account to FedLoan, they not only take no responsibility, but also purge your account from their system. That tells me they know it’s a bad company and they want no responsibility whatsoever when things go to hell.

      I feel your son’ pain, and can only cross my fingers that he and I both don’t get screwed like all these other people.

  23. whitney says

    I’m having trouble with my servicer! They’ve grouped them together… is this legal? Its not quite consolidation but still.. they say they can’t separate them and the department of education made them that way. Does any one have any opinion on this? Anyone have any argument I could throw at them? I really need them separated like they were when I accepted them. I start the grace period in may. Serviecer is my great lakes

      • Whitney says

        Yes, My Great Lakes holds a total of five loans. Some of them are subsidised and some are unsubsidised. They’ve grouped them by year accepted it seems, so the two earliest ones are in one account and the later three are in a seperate account. I did not authorize any type of consolidation. I’m not yet in the repayment phase but when the loans come due it is set up for two payments to them, one for each account. (so one payment for three loans, and one payment for two loans)

        • says

          That is common practice – because your Master Promissory Note is for the year, and so the two loans are considered one loan with two distributions. They also group the subsidized and unsubsidized together since they are different loans. It is not consolidation. Student loan consolidation would be where you get a new single loan, and you pay off the 5 individual loans with it. Then, you have one single payment.

          Why do you want 5 payments instead of 2? Why do you need them separate?

          • Whitney says

            I’m not sure I’m being clear. Let me try again. I have two loans for 2009, two loans for 2010, and one loan for 2012. One of the 2009 loans is subsidised, the other is unsubsidised. One of the 2010 ones is unsubsidised as well, the rest are subsidised. If I understand what you said correctly, they should treat the 2009 loans as one loan, the 2010 as one loan and the 2012 as one loan. Which is not how they’re handling it. They have the 2012 loan with the 2010 loans, and the 2009 loans by themselves. While this is close to what you described its not exactly, and they have unsub with sub (which may be common? But their interest rates and details are different) In addition I cannot direct which loan my money goes to directly.

            The main reason I wish them to be seperate is so that I can pay the interest plus the principle on one loan and wipe it out. The way they have set it up inhibits this now and in the future. The payment can only go towards interest of all loans in the account and then to the principle, essentially making it harder to reduce the principle earlier.

          • says

            You can still make direct principal payments, but you must call or send them a letter stating you want additional payments to go to principal directly. It is annoying, but if you do that, you will get your principal paid off.

            When they are talking about the payment going to interest first, I’m sure they are talking about accrued interest (which accrued while you were in school). You should consider this principal and not future interest on the loan.

  24. Whitney says

    Thanks for your help! I had called and bugged them enough so that they separated them the way I wanted. I now have an individual account for each of my loans and will have an individual payment due for each of them. This is the way I had prepaired for, and the way that my peers usually have dealt with theirs.

    Thank you

  25. Elizabeth says

    I began grad school in the fall, luckily before the announcement that there would be no more Stafford loans for it, and received notification that FedLoan was going to be my servicer. I googled the name of the company, and then I hoped it was a joke. The first hit was this site.

    Since then I got very luckily and got a job that remits nearly the equivalent of my loan amount, so I canceled my student loan for the remainder of the school year. Several people in the financial aid office at my institution told me I would still be on the hook for the loan fees on the disbursed amount and any interest on those fees. This was in December. I never heard a peep from FedLoan about the status of my student loan.

    I finally, two months later, went and checked, and it says my loans are paid in full. But how can this be possible? I must owe the loan fee–and I must owe interest on the disbursed unsubsidized loan principle and the loan fee. And more to the point, why the hell didn’t FedLoan contact me to let me know my loans had been canceled? What if I hadn’t been the one to cancel them? I would’ve been royally screwed come my tuition payment in January. What a loser of a company.

  26. Melissa says

    My loan is through the US Department of Education. I can’t even begin to tell you the nightmare I am having with them. This all sounds so familiar!!! I have spoken with a few customer service reps and two supervisors. I have had it!! They all give me different stories. I starting making my payments. First payment was in October, that was credited to my account properly. Made my second payment in November and that was credited to may account properly. Made my December payment which I mailed a check Dec. 16, 2011, the US Dept of Education cashed it (electronically) on Dec. 19, 2011 and it cleared my bank account (Wells Fargo) on Dec. 20, 2011. It has yet to be posted to my account. Here I am two months later…still not applied! I have been told numerous stories. “Some checks have to be entered manually, that they are back logged”, “they have a new system”, blah, blah, blah! These are all excuses! They admitted to having my money but won’t apply my December 2011 payment. In my opinion….I believe they posted it to another account and can’t find the mess up or as mentioned above….the US DEPARTMENT OF EDUCATION is out to SABOTAGE your credit! One customer service representative even tried to talk my into “forbearance”. Are you kidding me??? This is not my problem….it is their problem!! I will not stop here. I have excellent credit and have worked very hard for it….I will not let the US DEPARTMENT OF EDUCATION ruin it!

    Question – Has anyone filed a class action law suit against this company??? As mentioned above, I too, would like to file a suit againt them!

  27. Bob M says

    Hey, so I just got my first loan and got two emails from that company. Do I have to give my social security info on the sign in right now? I mean, I just started using the loan, do I have to activate an acct with them online now or can I wait till later? Sucks to hear how crappy of a company they are!

    • Dave says

      I just got an email from them too, saying they were now servicing my loan. I was concerned about sharing my SS number as well. Glad to know I’m not being paranoid, or alone.

  28. ANGELA says


    For More Information or to File a Complaint

    To learn about federal student loans, write the U.S. Department of Education at:
    U.S. Department of Education
    Federal Student Aid Information Center
    P.O. Box 84
    Washington, DC 20044-0084
    800-4-FED-AID (TTY: 800-730-8913)

    Notify the Federal Student Aid Ombudsman at 1-877-557-2575 or http://www.ombudsman.ed.gov if you have a complaint that you cannot resolve with your lender.

    For questions about a particular lender, contact the federal agency with jurisdiction over that lender:

    Office of the Comptroller of the Currency
    Regulates banks with “national” in the name or “N.A.” after the name:
    Office of the Ombudsman
    Customer Assistance Group
    1301 McKinney Street, Suite 3450
    Houston, TX 77010
    800-613-6743 toll-free

    Board of Governors of the Federal Reserve System
    Regulates state-chartered banks that are members of the Federal Reserve System, bank holding companies, and branches of foreign banks:
    Federal Reserve Consumer Help PO Box 1200
    Minneapolis, MN 55480
    888-851-1920 (TTY: 877-766-8533) toll-free

    Federal Deposit Insurance Corporation
    Regulates state-chartered banks that are not members of the Federal Reserve System:
    Division of Supervision & Consumer Protection
    550 17th Street, NW
    Washington, DC 20429
    877-ASK-FDIC (275-3342) toll-free

    National Credit Union Administration
    Regulates federally chartered credit unions:
    Office of Public and Congressional Affairs
    1775 Duke Street
    Alexandria, VA 22314-3428

    Office of Thrift Supervision
    Regulates federal savings and loan associations and federal savings banks:
    Consumer Programs
    1700 G Street, NW
    Washington, DC 20552
    800-842-6929 toll-free

    Federal Trade Commission
    Regulates non-bank lenders:
    Consumer Response Center
    600 Pennsylvania Avenue, NW
    Washington, DC 20580
    877-FTC-HELP (382-4357) toll-free

    The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

    Federal Student Aid, an office of the U.S. Department of Education, administers the federal student financial aid — grants, loans, and work-study programs — available for education beyond high school. Federal Student Aid interacts with postsecondary schools, financial institutions and other participants in the student aid programs to deliver services that help students and families plan and pay for college.

    To learn more about Federal Student Aid and how to pay for college, visit http://www.FederalStudentAid.ed.gov or call call 1-800-4-FED-AID.
    The Federal Student Aid Ombudsman is available to individuals with specific complaints. To learn more about the Ombudsman, visit http://www.ombudsman.ed.gov or call 1-877-557-2575.

  29. Jackie says

    Fed Loans is unethical. It’s unbelievable. I’ve been paying about $450 monthly through their Kwikpay service with minimal problems. However, due to a system glich, Kwikpay has scheduled a $3700 draft from my account for February 2012. When I called the the customer service center, they said that its too late to change the autodebit, but I can file for a refund which will take approximately 30-60 days. Per customer service, a system change caused this widespread problem due for loans with multiple due dates. (Instead of breaking down into 52 remaining monthly payments, the system broke the balance into 6 monthly payments) According to customer service, they had no procedures to notify borrowers using Kwikpay when they became aware of this problem. Thank goodness I checked online before the draft and I can move funds, but I can only imagine the havoc it can cause to someone not aware of this issue. Has this happened to anyone else?

    • jeff says

      jackie, i would not do any on line payments with fed loan servicing at all. When you go to their website that they advise you to do please read their disclamer statement. This clearly states that if you use this service you give up your rights to your original promissary contract and give fed loan servicing ” the right to change and alter your loan conditions and payments at any time with out notifing you.” this is only one of their scams as i am finding out.

  30. Troy Man says

    I posted to pay off the rest of my loan using money from my tax return. It got posted to same day that my automated monthy payment is normally taken out. They charged my bank account for the payment in full and then proceeded to also charge me the normal monthly payment. Now, since it has been paid off the website will no longer show me my payment details. It does show the extra charge in parenthesis on the account overview page. I e-mailed them about this. Their reply:

    Thank you for contacting FedLoan Servicing. Approximately 45 days after your final payment was received in our office, a request will be submitted to the U.S. Treasury Department to refund the credit balance. A letter stating your loans are paid in full will be mailed to you 30 days after the loan reflects a zero balance.

    I am not happy.

  31. SD says

    Same problem with the routing number nonsense. Told them I made the first payment online last month with the same routing number with no problem, but now it’s telling me the routing number is wrong. Their response, “As a courtesy, we accept the first payment with the wrong number, then you have to get the right one.” My response, “That makes absolutely no sense! How did it go through perfectly the first time if the routing number was wrong?!?” My bank even said there is no alternate routing number. I should also note that my payments for my other loan provider go through what appears to be the exact same payment system and there have never been any problems (even with the payment I made to them mere minutes before attempting to make one to FedLoan). Do they think we are stupid? I spoke to what was supposed to be a supervisor (though it was probably the regular rep who sits in the next cubicle…or the janitor…) and was told they would have the financial department look into it and get back with me. I won’t hold my breath.

  32. Lauren says

    So glad to see all these other comments. I HAAAAAAAAAAAATE THIS COMPANY!!! They are absolutely the WORST. I was just speaking with some little prissy pants who decided to be a total b*** to me even though THEY screwed up. Literally, took money out of my direct deposit TWICE this month (of unequal amounts which doesn’t even make any sense) and then on top of it tells me they can’t refund it…well, they could but it’ll take 30-60 days. WTF?!!! I now have $8 left in my checking account for the rest of the month is it’s only the 22nd. They are so incredibly rude, make mistakes, and don’t fix their own problems. If at all possible STAY AWAY from using these scam artists. I HATE this company.

  33. Jennifer says

    Thanks for sharing your experiences. I paid my first payment online before the due date. I paid the second payment using the phone service, also before the due date. FedLoan Servicing company keeps contacting me saying the payment is overdue. They are also sending me emails asking me to refinance the rest of my loans with them. MOHELA holds the rest of my loans, which I’ve been paying off since last year. I was searching to see if anyone else thought the Dept of Education refinance offer was a good offer. Even if it is a good offer, I think I might pass it up only because MOHELA holds the biggest portion of my loans. I’ve so far had a decent experience with MOHELA. I think I will stay away from FedLoan Servicing.

  34. PamT says

    I was just wondering — there are so many problems with this company, and a lot of it seems to revolve around faulty debits from checking accounts. Just curious: why are people opting for auto payments from their accounts? Is this a “requirement” (which would not be legal to mandate). My loan just got transferred to these knuckleheads, and I am extremely apprehensive of the issues that will be forthcoming. But, one thing for sure — they will never get auto access to any account of mine, and I will gladly file a lawsuit if it is required.

    • says

      It’s not just automatic payments, but regular payments as well sometimes. The best advice is to be very vigilant in your dealing with them.

    • jeff says

      pam, i also will never give these knuckleheads my checking info. Especially after i read their disclamer on their web site which they directed me to. It clearly states that if you use this service you give up your rights to your promisary contract and give them the right to ” change and alter your loan in any way that they want with out notifing you “. That was one of the first red flags.


  35. Little Red Hen says

    Has anyone run into an issue with having to send FedLoan.org an Unemployment Deferment Form?

    It was a PDF & allowed me to enter info, but then it made me “upload” it to EchoSign, which wanted either an email addy (which is not available — even via “contact us”) or a Fax number WITH COUNTRY CODE.

    My attempt to send it with the country code of “1” (which I googled) failed.

    I called FedLoan customer support and the woman said to “get out of that” and that she had “never heard of that.” She said I should be given the option to print, then sign, and manually fax.

    I clicked on the link they (FedLoan.org) sent me in my paperless inbox on their site.


    When I went to deferment forms and found the list with all the forms, I clicked on “file online” or something like that, not the other link beside it. It prompted me to sign in again. When I signed in AGAIN, it took me right back to my account summary page.

    So, I tried again, and just went in the same loop I’d just been in. I did it 3 times just to be sure it wasn’t me, then called the woman who didn’t help me and had never heard of “EchoSign.” I’m just going to print & sign, then manually fax.

    But still, my info (ssn, name, address) are somewhere in a database for EchoSign, and FedLoan employees have no idea WTF is going on with that company.

    What a freakin’ joke!

  36. Little Red Hen says

    I have to add: I have never had rude service from the people at Federal Loan Servicing. They have always been nice and helped me. I spoke with 2 females today, and the first is the one to tell me I could file the Unemployment Deferment Form online. I think she’s the one to send the link for the form to my paperless inbox.

    The second was nice, but ignorant to what might be a new way of signing and sending forms online. (Maybe that one form is an experiment? The other forms I clicked on have the option to print that she spoke of and that I’m familiar with.)

    However, if all their employees are not aware of a certain service or contract with another company, then it makes the company look bad. And it certainly makes the experience of the end-user unpleasant – to say the least!

  37. James says

    What a nightmare. Thank you everyone for the warning about these. Figured it had to be a scam after they sent me 573957039570235 emails disguised as something from the Department of Education.

  38. Laura says

    I had the same issue with the company. I had a good tracking record in paying my bills until my loan was transferred to FedLoan Servicing. This is the only negative in my credit. The process of direct payment to them took a long time. It was a horrible experience.

  39. Cindy says

    My loans were just transferred to Fedloan servicing and I am already having the same problems as everyone else. Is there any way to to have it transferred to another company?

    • says

      No, you can’t control where the loans go once you get them – it’s just luck of the draw. The best thing you can do at this point is just pay them off as fast as possible.

      • Jen says

        I think this is what bothers me the most. I just recently went back to school and have past direct loans with Direct Loan Servicing. Some how, some way because I had a new direct loan for my education it was sent off to FedLoan Serving and there is NO WAY to get it back to Direct Loan Serving with my other loans. Why doesn’t this make any sense!?!?!? I should be able to choose or move the one straggler loan to be with the others and everyone just simply tells me there are no options and I have to wait until I finish school to consolidate. Really, wait… annoying.

  40. Ben says

    When I read this article, I felt like I was the one who wrote it. The article reflects my exact situation. FedLoan Servicing is so terrible. Never in my life have I ever had to deal with such an incompetent company. Yet, I continue to throw them money, as they continue to claim I’m late or that they have not received my payment. Although my bank account shows the cash being debited from my account. Losing my MIND!

  41. NotTellinYou says

    Ok…I’ll chime in here! I’ve been with them for a little over a year since my loans where transferred. I pay on-line, always have, but like ALL my other accounts I do not set them up for auto-debit as I don’t want ANYONE having permission to dip into my checking account. I’m in enterprise software and bugs happen! So no way.

    Anyway, as I said, been with them awhile now and I have had ZERO issues. None. When I call they have been helpful. Knock on the LCD!

    Just reading this all and thought I’d be the outlier I guess!

  42. Ryan Pringle says

    I feel my situation is consistent with every other person in this blog. Is there any way to contact DOE and have something done with these fools. Worst service ever. I can understand if they were having to pay out money but this is a company that is suppose to accept money…. Just saying…

  43. Joe says

    Thank you everyone for warning me about this site. I was close to signing up, but I had a feeling that something was wrong. Thankfully paranoia saved me from having to suffer bad customer service and problems paying for my loans.

  44. Em says

    Well, all 5 of my student loans (excluding my private student loans through Chase) have been purchased by FedLoan Servicing recently. So far everyone I’ve talked to has been super nice and helpful. They even offered to put a forbearance on several of my loans that were in danger of becoming delinquent due to a long unemployment period, without having to file any paperwork at all. This was a huge relief for me. I’m employed now and am able to make payments, but I could in no way bring them up to date. I can also easily go online and specify how much money goes to each of my 5 loans, and apply more than the minimum payment to pay off the loan of my choosing faster so I can roll that payment over into the next smallest loan until they’re all paid off.

    I will say there was a confusing issue where they acquired a new loan of mine from a different lender right after I made a payment to them for the loans they already have. Those loans were in forbearance and weren’t due until the 11th, but I wanted to make the payment while I had it. Then they acquired the new loan. They applied the payment I made to the new loan which was severely past due and sent me TONS of emails and letters saying I owed the remainder of the past due amount for that loan. I was never even notified that they were taking it over, so that was a shock. I called and she offered to put the new loan in forbearance also, but that first payment which was supposed to take care of my payment due on the 11th is now rolled into the new loan. I was upset at first, but then she offered to push ALL the loans into forbearance for another 3 months so zero payments will be due, and I have time to catch up on some unpaid interest. Every issue I’ve had with them has been quickly resolved with a pleasant customer service experience. I don’t use the auto-draft service, though. I pay by card online each month, so *shrug*.

    All that being said, I had already applied for a loan consolidation when I thought all my loans were under 5 different vendors, so all of that is irrelevant anyway. I just wanted to let others know that not *every* experience with them is terrible, even if I’m the only one, lol.

  45. Steve says

    My student loans were bought by FedLoan Servicing in July. After not being notified until September, they were more than happy to put them into forbearance and wipe out any late fees. So far I have not run into any problems with customer service or anything. They were also very helpful being that I am now enlisted in the Navy and are putting forbearance for bootcamp. I can’t complain about FedLoan so far but, as with anything you do, I’ll probably run into problems but I hope that’s not the case.

  46. Ed says

    Making stand alone payments to pay down your principal? Not the case!!! Fedloan’s system takes your extra payments and allocate them as “payments ahead” so nothing will change in your principal balance between two statements. This is simply not right. Basic math tells you that if your principal goes down, then your interest payments will also go down since they are calculated based on the principal!!! It is bad business trying to fool their customers.

  47. Nate says

    This is by far the worst servicer I have ever known. I have 12 different loans and they have managed to mess everyone of my last 10 payments up over the last 3 months since I unfortunately got stuck with them. I have had to call 4-6 times/month only to have the “customer service” people on the other end of the line tell me varying details about my loans. Not to mention they put you on hold for at least 10 minutes at a time for the simplest of questions. What is the name of you company? “Let me put you on hold while I check in to that”. I have other things to do rather than spend time on the phone with Fed Loan Servicing’s incompetent staff.

  48. Herbert says

    Fedloan Servicing – A government contractor whose contract should be rescinded by the Department of Education. One other horror story.

    As a parent with a Federal Direct Student loan, I found to my horror that irrespective of how much I paid on the loan I got for my son, it always showed up on the credit reports as having used up 100% of my credit. Since I have no other outstanding credit except for my mortgage, that report trashed my credit score. So I paid off the loan. But getting Fedloan Servicing to report it to the credit reporting agencies must wait weeks to get that information processed or submitted.

    This organization is stuck on rigid procedures and, irrespective of the calls and emails I sent, they still create obstacles to my requests to submit my fully paid loan confirmation to the credit bureaus.

    So it will be weeks, upon weeks before my credit information is updated by this firm. These guys are rigid and have little appreciation for the concept of “Customer Service” If they can kiss off someone who paid off the loan in full, I feel for those who need accommodation to make payments or experience problems in need of true customer service.

    This organization should be booted out from any further contracts servicing student loans. The pain and frustration they must be causing across the nation may be incalculable.

  49. connie p says

    you forgot to add that 9 times out of 10 you cannot even access your account online!!!!!!!!
    Online site is constantly NOT working. I hate Fed Loan servicing.

  50. Greg says

    Fed Loan Servicing is hideous. Their internal procedures do nothing at all. The customer service reps can do no more for you than confirm for you that your account information is wrong. Well, if it is wrong now, it will be wrong tomorrow and the day after that. They won’t and can’t help you resolve your issues.

    If you deal with them, your expectation should be that nothing will ever, ever, ever get resolved. Pay off your loan, if you can get them to process your money correctly, and be done with them.

  51. Katrina says

    I just recently consolidated my federal loans and was sent an email that sallie mae will no longer be handling them and that FedLoan will be my new servicer. I don’t think I can decline them as my servicer and see now that I am headed for a world of trouble. Any advice for a newcomer?

  52. Keisha says

    Fedloan Servicing is obviously a high volume call center with low paid employees. DOE is getting what they’re paying for and we in return are getting the worst service for thousands of dollars we’re expected to repay. It’s awful. The people are rude and the supervisors either think we’re stupid or think if they tell us bs with a smile it’ll fly. To make matters worse the site is trash. Contact Ombudsman with your problems. DOE needs to see that they need to end the contract with this company. Direct Loans is much better to work with.

  53. Meghan says

    I had a similar problem with Fedloanservicing. I am very punctual with my two online payments every month. One time though, my payment for the loan due on the 28th was applied to the one due on the 14th of the following month or so I was told. I have no idea why this happened because I did what I normally do online. According to my bank account, the money was taken out; however, this was not reflected on my fedloan account. When I spoke to a customer service representative, she said she would apply the loan payment to the correct loan. A few weeks passed again and I still had the same message saying that I was past due. After several months of this going on (and I was still being punctual with my payments during this time), I spoke to another rep who said they would put a forbearance on my loan and change my due dates so that both payments are due on the same day. Well, that forbearance fell through without me knowing, perhaps because she didn’t complete the correct procedure in giving me the forbearance in the first place (i.e. reciting the rights and regulations). A few more weeks passed and I spoke to a rep who informed me that his work colleague ‘forgot to follow through with the forbearance.’ Why should I have to file for a forbearance to correct their mistakes in the first place? The employees were friendly and fine with me but are ignorant of their company and the company’s procedures. What can we do about this? I feel that being vigilant with them is not working.

  54. Nate says

    I dont know exactly what direct loans managers are doing but why dont they teach their workers to actually know what they are doing. Every question requires the employees to run to “mom” or “dad” to find an answer. I have had 4 student loan servicers and this is by far the worst. Why can’t they figure out how to process direct debit without requiring calls to confirm it was done correctly. All I know is that I want out and I am going to scrounge every dime for the next year to make sure that this is done.

  55. James says

    Just had my loan transferred to FedLoan from Direct Loan, after sending in my first documentation for Public Service Loan Forgiveness. I had not one problem with Direct Loan, and was dreading the transfer after reading this site. Of course, my fears were confirmed. After I got my notice of the pending transfer from Direct Loan around 2-3 weeks ago, I was a bit paranoid from the posts here, so I compulsively checked the FedLoan website every day to see if the loan had made finally it over to them. At around 6:00 pm a few days ago, I get an email from them saying that they’ve received my information and that they’re in the process of completing the transfer. Curious, I check their website, only to find out that I have a payment due THAT VERY DAY. Keep in mind, it was 6:00 pm, and this was the very first time my loan info ever appeared on the website. No billing statement or any communication from them telling me that I had a payment due soon, let alone in a matter of hours. Fortunately, I had set aside the monthly payment amount, so I entered my bank info and made the payment by 6:30. I got the confirmation info, and the payment showed as pending on the website. Also note that this is the middle of the week, and their website explicitly says that payments just have to be made by midnight on the due date. Sure enough, the next day when I log in, my account is now delinquent. Three days later, it still shows delinquent, and they still haven’t deducted the payment from my bank account, even though the money is sitting there and the payment shows as pending on their site since the due date. I pay nearly all of my bills online, and I have never seen anything like this. If you make a payment by the due date (assuming you don’t miss a time cutoff or anything), then a payment qualifies as made, regardless of when the lender gets around to crediting it. Indeed, this is what FedLoan themselves say on their website. I’m hoping they will fix this, but I’m worried that they will report this “delinquency” on my credit history, which is flawless. If they do, they’ll be inviting a lawsuit. I also find it hard to believe that it was just a coincidence that my loan suddenly transferred to them on 6:00 pm on the due date (and, again, no notice of payment due if I wasn’t being vigilant). Sounds like an absolute scam to me. To anyone who’s gone through similar problems, I’d encourage you to contact not only the Student Loan Ombudsman, but also the US Department of Justice, and the office of your state’s attorney general. You might also think about contacting the US Department of Education’s Office of Inspector General, since FedLoan is receiving funding from that agency. Give them hell on all fronts and they’ll either clean up their act or become the subject of some devastating investigations.

    • Lisa says

      My loan was transferred from Direct Loans to Fedloan Servicing last year. While with Direct Loans, there was some confusion about my payment plan for Public Service Loan Forgiveness. Eventually, the issue was resolved, and Direct Loans sent me a letter indicating that I had 20 potentially qualifying payments, which I could see online. After the transfer to Fedloan Servicing, I was informed that not all of my 20 payments will count because, and I quote, “Direct Loans didn’t know what they were doing and were giving people bad information.” I have since contacted the Dept. of Education’s Oms Budsman, with little response. I left the Oms Budsman agent a voicemail stating that after I reach my 120 payments, I’m out. I will no longer pay Fedloan Servicing a dime. If they try to come after me, I will get an attorney. Explain to me how they can transfer a loan and suddenly take away payments that qualify??? That’s like telling people their mortgage payments won’t count after their note is sold to another bank. Totally illegal! Thankfully, I have something in writing from Direct Loans. Oh, and get this, when I contacted Direct Loans to get their response, they told me that the payments should still count. WTH????

  56. Mitch says

    Fed loan servicing is by far the most inefficient organization i have ever dealt with. I would advise anyone that can borrow money somewhere else and pay them off would be wise. Thats what I plan on doing. I clearly qualified for the teacher loan forgiveness program, the us dept. of education had some dates screwed up which made me ineligible. It took two years, and fifty phone calls and letters from attorney general to fix. Well now they say I owe them all the interest that has accrued on these loans. I think I will send them a bill for all the time it has took me to straighten this mess up, which will be more than what I owe them.

  57. Brandon says

    Fed Loan Servicing is the worst agency I have ever delt with. Every time I call the customer service department, I basically have to explain to them how their repayment plans work. My loans go into repaymnt next month and because this so called loan servicing company can’t figure out how to process a repayment plan, I don’t even know what I owe them yet. My guess is that they’ll finally get around to processing my information the day before the payment is due and then expect me to pay them whatever amount they come up with. And the best thing is, nobody cares! I am not looking forward to my years of repayment with this company, but there’s basically nothing I can do about it.

  58. BradB says

    Horrible organization and poorly designed site and billing process. We’ve been making semi-monthly payments while my wife’s student loan was in grace. The “payment date” on the site always showed the date of loan origination, not the actual payment date and I had to complain twice about that before they fixed it. This month the loan came out of grace and we’ve made TWO payments before the due date, both for roughly double the amount due and both prior to the due date. The loan status now shows “delinquent” and a big past due alert shows on the landing page. The comical part is that right below the alert, there’s a payment summary with a line with the current due date and amount due, then a line with the last payment date and amount paid. It doesn’t take a genius to see that the account isn’t delinquent.

  59. Victo says

    Fedloans is quite simply the absolute worst company I’ve ever had to deal with. And what makes it even worse is they have control of my money! The web site only allows you to go back 12 months of transactions. That is absurd. How long could a Credit Card company or bank get away with that beofore going out of business? Not long.

    – They are missing $850 in payments that I have made.
    – They say I have made 47 payments, but I’ve only made 34 payments.
    – None of the paymenst they show me are the same dollar amounts that I’ve paid.
    – Over 90% of the dates shown for payment are incorrect.

    Plus they don’t know how to answer questions in an email. This company must be ran by governement employees (probalby Union) who don’t really have a horse in the race. They don’t give a rats behind about quality. Hey, its all other peoples money their dealing with, not theirs. I’m getting out of using them as quick as I can. Many banks have stopped providing Student Loans, including my bank. Good old Fed I think has ran another industry out of business. $&%$##@!!!!!

  60. Harris says

    sooo can anyone give me advice on what to do when fedloan says that because my birthday isn’t the same as what they have? they tell me I’m suppose to send them ID with the correct birth date so they can start talking to me about the loan. this all said they have all the other info right.

  61. Leo says

    Make sure you contact your congressman and senators so this can be addressed. My loan just got transferred to this companies and can’t just wait to get a lawyer and sue the pants off these clowns. Too bad you can’t choose who services your loan, perhaps we can get that changed.

  62. Honore says

    I found this valuable information
    to have the exact status of your loan and lender , please follow this link : https://www.nslds.ed.gov/
    once you enter your information, you will see the amount of loan and grant.
    then you can click on “Download My student data”. this is a valuable file that give you almost all the information about your student loan, lender , amount, date of repayment, etc… you can save this information as a text or pdf file for future reference.

    • Eric says

      Thanks for this! I forgot all about this site since I’ve been in the repayment mode for a while now. Just downloaded my copy of my info just in case I need some proof of what I still owe if FedLoan Servicing screws up the transfer…

  63. says

    I actually today went to Fedloans to talk to them about if I could make my payment from the bank with my routing number and I don’t know how but I was gonna talk to bank when I get there. I stumbled on this webscite when I googled in Fedloans. I am pretty much very unhappy with Fedloans myself. I got ready to make my payments and asked them about sending a check monthly? They replied we don’t do that. I really didn’t want to pay on line due to Hackers so I went with the over the telephone way which by doing this I have to use a checking debit card from a bank which I got pretty much just for them. Well someone has gotton a hold of my checking debit card and you can pretty much guess what happened with them getting it. I have that problem now so pretty much stayed calm through matter and because now I am having the real deal of financial difficulty I went on their scite and filled out a form to hold up my payment for a few days but it looked like to me if this form is granted it will only be for 60 days. This is the only thing I could think of to get back on track then and start making my payments again as normal. They sent me an email and said they will have a decsion in something like 10-15 business days. I’m thinking ok here I am trying to resolve this issue and let them know whats going on since as of now my account is deliquent which I don’t think really anybody wants. Well the next day I recieved another e-mail from them we still need you to make payments while your your decsion is pending. I am thinking now maybe they really know what finacial difficulty is because that is why I got with them to resolve this problem to file for that because I am having finacial difficulty If I had the money I wouldn’t being contacting them for a 60 or 90 day day postponement. Now I am worried if I do not make a payment withinin those 10 to 15 busness days they won’t award me this. Reading the comments posted just gets me thinking about this Country and why we are in such a mess. I was on Unemployment at the age of almost 39 and was seeing all these commerials for Triangle Tech and on the radio all the time so I said people can’t find a job as it is, I’m on Unemployment at the time and I can’t find anything at the time so I decided to go to Triangle Tech which is government funded also. Before this last ression they had small class sizes and I’ m talking 6- 12 tops. I was told small class sizes when I signed part of my life away. Go ther the first day I am in a class of 14. I thought that wasn’t small. There was another Electrical class of 14 maybe 15. Now get this within the first week they fired my teacher and the other classes teacher. We have no teachers , the one Administrator and some of the Carprentry teachers were teaching are classes. Well basically they talked us into giving it a shot and they were gonna get us some good teachers. Everyerybody cmoplained about these teachers is why they were let go. Come to find out the one was a regular basic electrian who never taughty school before and the other was a man who never taught before and was on Unemployment . This school is tied to FedLoans whuich between Triangle Tech and Fedloans which are really tied together. After I seen these comments about Fedloans and the experience with Triangle Tech which got really bad it just seems kto me now the big picture clearly now The government is scamming right along with these other two scammers. Its all tied together as one. I thought it was an unbelievable learning experience at Triangle Tech. I really don’t wonder anymore why this country has been for a long while going down the tubes, still is but everything and I mean everything has a breaking point in this world we live in.

    • Victo says

      Fedloans under the Department of Education is a typical example of a government ran business. It shows poor efficiency, a lack of expertise, and no accountability. Fedloans is doing whatever Fedloans wants because they have no competition. This administration has seen to that. Have you been to your bank lately to try to get a school loan? Most no longer deal with it since it is impossible to compete with the government (taxpayer-backed) loans.

      Also, like no other company I’ve every dealt with, Fedloans charges a premium if you make payments to them thorugh your own bank! They try to force you to make your payments through thier online tool and call it a “discount” if you do. So, I end up paying 17 of my bils through my bank but have to go to their site to pay one stupid bill. So much for customer service.

  64. Danielle says

    Fed loan servicing’s web site is ALWAYS down! Like right now! And it always seems to be on a Sunday when they are not open. All I want is a simple and convenient way to pay my loans. Fed Loan servicing does not meet these needs.

  65. Jeffrey Cleybourne says

    Joseph and everyone else, a special division within the Department of Education was set up early this year. Its purpose s to investigate some scrupulous behaviors, deficiencies, and irregularities by some of the Federal student loan servicers. Fedloan appears to be top on the list of the target servicers. This year Fedloan is receiving significant Federal paper worth hundreds to service. Unknown to them, some of the the loans are directly monitored by the DOE for the unending complaints mentioned above. The big Part of the problem is that the key stakeholders in this company are a powerful influence the DOE’s decision making process. Quite a lot is going to change in the next few months.

    • says

      Jeffrey thanks for stopping by and sharing that insight! I also saw that the CFPB is starting to look into student loan servicers as well, so hopefully some relief will come from that front as well.

    • Patrick says

      Jeffrey thanks for the info. Where can I get more information regarding what you mentioned? My loan has just been transferred to FedLoan, and we are talking about 50 K. All I have read concerns me greatly. I’m not worried…I’m hell scared…

    • Nancy Lopez says

      Hi Jeff,

      I would be very interested in the name of this special division within the Department of Education that investigates unscrupulous behavior by such companies such as FedLoan. I received an email on 10 June 2013 advising me that my student loan had been transferred from Direct Loan Services to FedLoan.org – my original instinct is that this transfer does not bode well and I would like to have the ability to contact the Department of Education directly should I have the experiences many of the posters have had. Thanks!

      • Victo says

        I stopped making payments to FedLoans until I can be sure they are giving me credits for each dollar. As stated before, their records are missing several hundreds of dollars in payments that I made. Three times (so far) I have asked them for reports to show my payments and they have failed to do that simple task. I am afraid that I’ll just be throwing away money if I keep paying them and they’re not properly recording it. If anyone can hlep me with this company, please let me know. I don’t know what to do anymore. Simply put, FedLoans scares me.

      • Victo says

        I challenge everyone on this blog, if you haven’t done so already, to request a report from FedLoans showing all of your payments and where they were applied. To say you are in for a major shock is an understatement!

  66. Dee says

    I’ve been paying my loans to FedLoan Servicing for a year now and I have not had any problems. The only think that I noticed is that their customer service people are not that knowledgeable about repayment plans whereas the customer service agents at Sallie Mae were. I’m getting ready to enroll in direct debit to reduce my interest rate, but these posts are making me nervous.

    • Eddie U. Cassion says

      DON’T DO IT! You’ll have so many problems. Notice how they make it easy to sign up via their website but very difficult to cancel…you have to send them written notice which I’m sure they’ll just claim they lost or didn’t receive it and continue to take your payment out whether you can afford it or not. Use bill payer instead that way YOU have control over the payment and aren’t subject to extortion.

      DON’T FALL FOR THE INTEREST RATE REDUCTION SCAM! It’s obviously a blatant attempt to obtain your bank account information and once they have your bank account info you’re doomed. That’s like a big chunk of freshly mined diamond to them. They’re not givin’ it up worth anything! They’ll just extort you and continue to take your payment out whether you request forbearance or a cancellation of your direct debit. They’ll try to take it out even if they know it’s going to bounce. They don’t care. That’s their intent. Their excuse? Get a higher paying job you bum!

      Pft! Chyeah right.

      Oh. Why didn’t I think of that?

      OMFG!! I’m such an idiot!

      Thanks for helping me see the light FedLoan!

      They’re hellbent on making your life miserable. This is obviously a very troubled institution and I’m becoming a very violent, angry person because of it. I nearly tore apart the house the other day in a fit of rage when I saw that my payment amount mysteriously increased for no reason at all from a payment I would have been able to make to one that I will not be able to afford. They did that on purpose. Next time I think I’ll save myself the hassle of the clean up and just tear apart their nice, big, expensive-looking glass office building instead. It would probably be worth every penny of the vandalism charges on my record, going to jail and never being able to secure another job again! Lol. Take that FedLoan! Now you’ll never get another payment from me again! Bastards.

      I worked at a financial institution and many of our members had the same problems with FedLoan and now I’m having similar issues with them. They just do whatever they want regardless of your request and then make up some excuse to cover for it or tell the front line staff to relay lies and deceit. It would be more respectable if they would give you an upfront answer and tell you that they can’t approve your request and your payment will still go through no matter what and this is what it will be. Says right on their website to call them if you’re having trouble making payments. Pft! That’s a damn joke! They ain’t gonna do a damn thing about it other than increase your payment and tell you to get a higher paying job as if it were just that easy! That normally is what people who sit at desks all day with nothing to do, have no experience and make $60,000 a year say.

      WOW!! Look at you up there!

      I’m so proud of you!

      It’s just too bad I’m waaaaaaaay down here (in your mind anyway). Oh whale.

      It’s the supervisors and upper level managers making the decisions about your account then telling the lower level employees the lies that everything is taken care of. The lower level employee then relays to you but, unbeknownst to the lower level employee, everything is NOT taken care of and then they have to put up with your crap the next time you call in bitching about something they apparently screwed up on purpose.

      The system is designed to be deceptive and confusing so you don’t know what hit you and they can just blame it on a glitch in the system. In reality, they DO know what they’re doing. This is intentional. These people are criminals. It won’t be taken care of until someone takes out the *bleeping* disgusting garbage within.

  67. Mike says

    I have had many of the same negative experience with FedLoan Servicing. I was fed up long ago and attempted to change loan servicing compnaies. The request was denied by The Dept of Ed. I have been attempting to get an answer to a burning question, but have gotten nowhere with either FedLoan Servicing (Big shock there) or The Dept. of Ed. Does anyone know how FedLoan Servicing is compensated by by the Federal Government? Is it possible that they are compensated based upon the balance of the loans that they are servcing at any given time? Is it possible that they have a financial incentive to keep the recorded balances on loans higher? I guess I always assumed that they were compensated based upon the loans that they collected, but that makes too much sense. If anyone can answer this question, please respond to me directly. Thanks in advance.

    • loanranger says

      It’s actually by loan status – from most compensation to least is:
      – loans current and in repayment
      – loans on deferment or forbearance
      – loans that are delinquent (past due)
      – loans in default

  68. Caitlin Hollis says

    Oh my, I was reduced to tears speaking with them yesterday and am incredibly frustrated. I’ve requested a record of all our correspondence to take to the Ombudsman with no response. I’m trying to revert both my consolidated loans into repayment so I can begin paying. They will only revert the subsidized loan and not the unsubsidized! Saying they never received the form requesting the unsubsidized enter repayment – it’s the same form for both – just one form!! I have faxed and mailed it multiple times. I’ve been attempting this since April. While my loan just sits there collecting interest. How do we all come together to file one huge complaint and who is their regulating board? These practices are beyond unethical.

  69. Amna Ziad-Miller says

    I believe fedload is involved in fraud possibly. When you repay a loan normally part is allocated to principal and part to interest and as the loan is paid more is allocated to principal and less to interest. Over the last 10 months or so since i started repaying there is no regularity in what is applied to principal and interest. Payment #4 for example had about $300 applied to interest and $1600 to interest. The next payment i paid more and only about a $100 was applied to principal and the rest to interest. The following payment i paid more than the regular payment again and about $300 was applied to principal and the rest to interest. I feel like no matter how much more i pay it only goes to interest not principal. I feel like im throwing money away and fedloan servicing is not allowing me to pay down my loan. This seems criminal to me. What can i do?

  70. JElizabeth says

    FedLoan SUCKS! I sent in a request for IBR, but they’re taking forever to process it. So far, two reps put in the app for forbearance. Today, I called because I got a past due notice and was told the forbearance is there and approved, but it has to be manually applied to my account. I asked when and the rude rep ignored my question. They are no help….I plan an aggressive course of action with a heavy paper trail, complaints to every entity possible. I will be relentless until they fix my account. Everyone needs to do this because they are taking us all for a ride at our expense.

  71. Carlos says

    My loans just got transferred to fed loan servicing and they admitted to the following:
    1. Not sending me a bill
    2. Placing my account under forbearance because I am on auto pay and they didn’t have enough time to apply my payment.
    3. Sending me a letter that said I have to do nothing and my auto pay will be applied.

    It seems like this is something I am going to have to get used to or pay off the balance asap.

  72. Nathan says

    Just wanted to add to the chorus of voices denouncing FedLoan Servicing. Even their website is useless, I get errors and crashed pages half the time I’m navigating their site… I just want to repay my loans, darnit, why make that so difficult?

  73. lacie says

    I haven’t had an issue with fedloans. Sure their website takes days to show your payment and their customer service reps are clueless, but what do you expect for minimum wage pay? They have always credited my account for the day that I paid, as far as interest goes. Just do everything you can to pay your loans off asap so you can be free of them. I started at 36K in May of this year and will be down to 20K in December. Will be free by Oct. of next year. Just continue to live like a college student and move in with parents/roommate/bf/gf whatever to help. We can do this!!! Keep plugging away, there is light at the end of the tunnel.

    • Jessica says

      It isn’t minimum wage at all actually…I see critical thinking instead of
      assuming was not taught to you throughout your education. I work there
      in Customer Service and make 15.63 per hour. Not the best, but also not
      bad for a 23 year old student with an easy job while getting tuition
      reimbursement for my BA. The reps aren’t clueless, the borrowers most of
      the time are. Some people don’t know what they’re talking about though,
      as in any company. Oh well, it’s life.

        • Jessica says

          LOL stop playing little miss victim, you’re the one who took out student loans, YOU signed up for debt. When you sign up for student loans and don’t research the college, research the degree, finish the degree, or ensure yourself well placement then that is your own fault! But you’re right, GO ME because I planned things out the right way and first obtained a job which would pay for my schooling. So yes, go me for planning, and shame on you for playing a victim when you threw yourself into debt. Get it together.

  74. Brandi says

    FedLoan is the ABSOLUTE WORST loan servicer in the history of student loan servicers!!! My loan was transferred there from Direct Loan Servicing back in May. I am one who always likes to stay on top of everything so as to not have a negative mark on my credit report. So I called about a month ahead of my next payment due date just to make sure that my direct debit transferred over and I didn’t need to worry about re-signing up and whether it would be in enough time to make the payment, as was stated in the communications I had received from Direct Loans and from FedLoans. After calling and waiting on hold for twenty minutes, I was informed that the information did not transfer over and that I would, in fact need to re-sign up for direct debit and that it would not be in enough time for the monthly payment so I would need to make it manually. That was fine, I was just simply annoyed that I was given conflicting information between the correspondence and FedLoan Customer service. So going along, my payment is made automatically without issue, until I started attending school and then a month in, transferred schools. I never was not in school, just simply transferred. Well they wasted no time switching me from deferment to repayment status, however it seems updating my enrollment takes QUITE a bit longer even though I was never NOT enrolled or attending classes. So again…called, waited on hold forever to be told that I needed to send my enrollment verification to them and it would be updated within 7-10 business days. Well a few days later, the enrollment wasn’t even showing as received so I sent it again and again told I needed to wait another 7-10 days for processing. After those 10 days, I emailed asking why my enrollment status still had not been updated, I’m enrolled, taking, attending classes…everything I need to be doing. The next response I get tells me that processing actually takes 15-20 days and if I have further questions to contact customer service. So I respond saying how interesting it is that not only am I being told different days that the enrollment status was received but also that the timeline keeps changing and why should I continue to call “customer service” if they obviously cannot give me accurate information. The response says, the reason I received varied responses was because they received two different enrollment verifications. Notice again the change in story…I thought they never received the first one. So long story short, they received my enrollment verification on September 17. As of today October 16…I am still showing in repayment. Meanwhile, loans that are being serviced by other providers, have switched back to deferment without any delay or problems and without debiting money from my account. I have no problems paying my loans at all…but it is the simple fact that it’s one less thing I should have to worry about while I’m in graduate school. Anyways, sorry for the long post, I just DESPISE these people and wish that my loans could be transferred to a company that actually does know what is going on and has knowledgeable customer service reps. that are courteous and are not too lazy to obtain correct information.

  75. Gigi says

    Fed Loans looks like it’s going to be a nightmare to deal with. I am paying my loans with an Americorps Education Award. I have to request payments about 15 days before they’re due because Americorps takes a while to process the payments. I made the September payment, and Fedloans says it’s delinquent! even thought they are telling me that they received the payment from Americorps on the 9th of October but it takes 15 days to process and post on my account. WTH! If you have my payment, then post it already! To make matters worse, I requested the October payment already, and they’ve already received it. They say it will now take 20 to 30 days to post ans reflect on my account. That means that my payment will be late for October. What is wrong with these people?

    • Ben says

      I too have had these maddening issues. They tell me since the Segal Award is a government payment and not personal they take over a month, sometimes 2 for me, to even process and cash the check because they say those take a while to process. They’ve also not credited 5 months worth of payments to my account which then forced me to do a check trace with Americorps to prove their mistake. Then per their suggestion sent a letter and over 30 pages of proof of their mistake and the issue is still not resolved, hence me needing to call them every two weeks to check up on them to make sure my credit score doesn’t suffer because of their constant mistakes. I’ve filed complaints with supervisors but never Department of Education, and still nothing changes.

  76. Moni says

    I’ve only had one problem with them and that is a large payment I made with direct loans and then was transferred to them I never seen a dent in my payments that does piss me off. Also there is a tricky thing they do and that is it says pay this loan but then you have to click on again pay this specific loan. Otherwise you will be allocating all your loans to mostly interest. Once you figure out all the misleading tricks you’ll know how to play the game. Anyway .org always means non profit they shouldn’t be making a profit. Well direct loans screw you for selling me to this shitty company and makir lose 500 dollars.

  77. says

    You need to send them a written letter explaining it, and then also file a complaint with the Department of Education. It sucks and will take work, but hopefully it will get resolved for you.

  78. Shannon Hamm Holler says

    I am so glad I found your article. I am currently shaking with anger and frustration at Fed Loan right now. This happens to me every month. I provide the correct check information, make my payment and voila, I’m delinquent! The customer serviced providers never answer my questions, are completely incompetent and rude, and actually hung up on me. Now mind you, I used a calm voice the entire time with both service reps, never cursed, and asked legitimate questions because quite frankly they were not making any sense at all. They actually hung up on me. I was told by another idiot associate long ago that they do not accept debit transactions. So annoying because I do not use checks. But I found my check book, submitted electronic routing number and my account number and it never goes through. They always try to blame my bank but my bank confirmed that all of my information is correct. Nor do I have any issues with anyone else. They blamed me. I verified my information. Then they said that they have no guarantee that their system won’t run my account numbers incorrectly. And that I need to check back with them after five days to make sure it went through. Who has time for that!? They informed me that they do take debit (so other service providers lied or were ignorant) and I had to beg them to take it over get phone over going back into my account and refilling out the information. They said they sent me an email yesterday that I had a delinquent account for 42 days. I never received an email (other than my next monthly statement due in February) and that didn’t provide any info of a delinquent account, now mind you I had made two payments, one of which was on the phone two weeks ago with another idiot rep and neither went through. Though they couldn’t explain why because everything on my end and my banks end is perfect. They said this will more than likely happen monthly. But this affects my credit and late payment fees. They justified it that it didn’t this time. Well, that makes me feel better!

      • Shannon Hamm Holler says

        So the story continues…..I tripled my payment yesterday with my debit card, this amount was immediately taken out if my checking account. Received notices today that I am delinquent with my payment. I called to make sure it wasn’t an automatic response sent on accident. The rep said they have no record of my payment and that I am over 40 days delinquent. I told him my story and that I had to make a payment with my debit card by phone. He said they do not accept debit or credit transactions. And yet I have $400 taken out of my account. He then found the transaction after much searching. He was baffled about the debit card transaction. I asked when this would update in their system so that my credit does not get hit. He said it might take several weeks. Again, the money is taken immediately out of my account. He said the only thing I could do was to apply for forbearance. So that my credit doesn’t get hit over the next several weeks until they “process” my payment. He assured me that this would not increase my interest or affect my credit so I agreed. Of course I immediately regret the decision because that is meant for when I need help and cannot make my payments. Plus why did I trust this guy, who didn’t even know they accept debit transactions? This could be affecting my credit and interest rate. He gave me no other option. I told him that other reps told me it was probably an error on fed loans end to begin with. He laughed at that and blamed my bank. He went on a spiel about how local banks don’t know how to give the correct electronic routing number. I told him I never went through my local bank, and that the electronic routing number was not only given to me by my national bank but verified by fedloan servicing.
        This is a scam. They are doing this to force delinquent payments on my end even though I pay monthly so that they can increase my interest rate.
        Robert, How do I go about fighting this and reporting them to The Department of a Education?
        One final thought, this rep urged me to switch my payments to pay.gov. He said they then receive the payments through them. I asked him to walk me through it and he tried, but with no success. Apparently they are not or no longer apart of pay.gov. Though why have a middle man? This is such a nightmare. I need to refinance my loan with a credit union.

        • Cassie Dobson says

          Contact the Federal Student Aid Ombudsman. Also, consumerfinance.gov. These stories scare me. My loans were sold to FedLoan also. I’m doing IBR,and my payments are $0, but I’m always checking because it’s been such a pain just to get on the IBR. My IBR application was accepted, but they extended my forbearance for another month for some reason. Now five months after sending in my TEACH Grant certification, I got a letter saying that my certification wasn’t accepted. I was told it was accepted a few months ago, and their website says my recertification isn’t due again until 11/2014. I don’t know what else they want me to do to prove that I have been working as a special ed teacher in a low income school since 10/2012. My form was certified by the administration in my district, and I followed all the directions on the form. I don’t understand why it has to be such a pain!

  79. Justin Shiffler says

    Check out “FedLoan Servicing Scammed” on facebook. I started this to try and pool others who have been wronged.

  80. Student says

    I too have had a number of problems with this company. I once had this company and then consolidated my loans and thankfully my loans went to another company. I filled out forms to be on the ICR and was off running making some payments. Then a few months in, loan gets transferred right back to FedLoan, but the ICR was still good to go. Problems really started with a nonpayment issue, I tried to change my last name since I had gotten married (really more trouble than its worth). I sent all kinds of required methods of validation, both through fax and mail to only get a letter in my inbox online to say, not legible, invalid form, lost the paperwork etc. Tried about four times to no avail. Then comes time to submit follow up paperwork for the ICR since it had been one year. Okay no problem, submitted all the paperwork and processed with no problems whatsoever. Wonder why this was? Probably because they approved me for $0 payments, since I didn’t make much, and interest would accrue so they would make more money. Not bad for short term though – since interest is tax deductible later. I then got a job, since my husband was the primary earner and we resubmitted paperwork since our income had changed. Had to submit twice before it got processed and it took about a month before they accepted and revised my payments. Now I need to start making so payments, hahah here we go. Tried to send a payment through my banks auto bill pay – bill pay always worked 100%. My bank has a relationship with FedLoan so it will be electronic and no problem right?? Well the payment never gets credited to my account last month in January. I called them and they tell me they never received the payment and they were ever so gladly able to put my account in forbearance so they wouldn’t report me missing a payment. Like hell they didn’t receive it, I sent them the proof from a statement and also even had my bill pay people send there paperwork showing the payment at least made it to FedLoan. As of today, they say it is still being looked at. Simultaneously, I had sent paperwork to begin taking advantage of the direct debit since it would help a little with the interest as well. I called about a week after I sent it and the guy told me it was early enough in the billing cycle that it would take affect and my payment would be taken out for Feb. Only to log into today to see Delinquent and 2 days past do. Okay, maybe it was because my payment was taken out on Friday and today was a Holiday. Called and nope direct debit wasn’t started and he tried to tell me the paperwork was lost and they never processed it. Oh wait wait, nevermind he says about 5 min later with me fuming, i found it, but its being processed. You’ll have to make a payment manually.

    So far the gist of my experience is when the situation will benefit FedLoan they have very quick turnaround time when it comes to processing paperwork (ie, forbearance which is processed in a matter of 5 sec on the phone, ICR which is processed in maybe about 2-3 days since overall your payments would be reduced which means longer term to payoff your loan. Then they are very slow when it comes to either accepting or processing a payment (ie, proof of payment process when you show you really paid and they say you didn’t, signing up for direct debit to take advantage of the little minute savings on the interest rate (still a savings), etc etc) Very frustrated when I can’t even pay anything to my loan. HELLO, I’m the one that is responsible to pay and I’m trying to take care of my responsibilities, but this company basically won’t allow me to.

  81. Grr says

    Wow. I’m glad I am not the only one who has been sent into an anger blackout by FedLoan. But I’m also really sad that I’m not the only one, because it’s downright criminal that they are screwing over people on such a massive scale. They are by far the worst company I have ever had to deal with on the phone. And I’ve had to deal with Geico. Seriously, Geico, whose representatives tried to gaslight me into thinking that it was actually I who moved my car sideways into the bumper of the woman who backed into my passenger side door. FedLoan is worse. Their customer service is worse. And their website is definitely worse. I made a $3000 electronic payment to FedLoan almost four months ago. My bank sure thinks the money is with FedLoan, but FedLoan disagrees. I’ve called them and faxed them and faxed them and called them with all of my bank info. I usually have to sit through someone explain, at excruciating length, concepts such as “interest” and “what to do if I can’t afford to make a payment,” all of which are both ridiculously basic and COMPLETELY IRRELEVANT TO THE FACT THAT THEY LOST MY $3000. After jerking me around for almost four months, they finally told me that I would need to sort it out with my bank and get back to them. I am just dumbfounded.
    And this is only one of the many things they have done to piss me off.

  82. FURIOUS says

    THIS IS A FUCKING NIGHTMARE!!!!! I AM IN TEARS OVER WHAT THIS COMPANY IS DOING TO MY BOYFRIEND!!!! I just wish I would have researched this place before he even went and signed up with them….from what Ive been reading it seems he picked the worst company to use that seems like nothing but a SCAM and FRAUD!!!

  83. WV Teacher says

    I am also having a horrible time with Fedloan Servicing. Last summer, my loans were automatically transferred to them along with my Teach Grant. I sent my Teach Grant certification to the address on the form I received which I found out was the wrong place AFTER I received it back by USPS Return Mail. I immediately called Fedloan to find out what happened and they told me not to worry, I had an additional 30 days to get the information to them. I faxed everything to them the following day including the envelope everything came back in so they could see the postmark date, but they converted my grant to a loan anyway! I have been calling regularly for almost 6 months and a manager in the Teach Grant section keeps telling me that my case is under review and they had many cases like this so I just have to wait. Now they are billing me and want me to begin payments on the grant plus interest. I am at wit’s end with this company!!!! Is there anything we can do collectively??

  84. TN Teacher says

    I am having the same problem as WV Teacher. I just filed a complaint with the BBB. I had to do something to make me feel like I had some say. I forgot to fill in the address of the school where I am completing my teaching obligation. I received the letter stating I had 30 days to fix it. 9 days later it was converted to a loan. That was in December. It is now May and no one can tell me anything except that it is under review. Today it was actually in “the final stages of review.” Hmmm…Look at the dates, verify the information, and make a decision. That takes 6 months????? Seriously?

  85. Echosef says

    I agree. They bought out my loans in 2009 and now say that they lost track of my previous payments and paperwork. I am a federal employee and am trying to get loan forgiveness for my federal loans under the public service loan forgiveness program. So now I have about 5 years more than I should have to to pay. Additionally the just changed my payment plans, I am not qualified for IBR now so instead put me on ICR, but have me set up to pay the loans off in 10 years instead of the maximum 25. Now my payments are double what I am used to. I have contacted them twice and nothing has been resolved. I contacted the department of education and it sounds like you can file a formal complaint with them, I have worked with them on various issues that have not been resolved for the last few years. Every time you call it’s just the run around – or yeah – we will fix that and nothing gets done. Something has to change.

  86. Alicia Fortner says

    I had different though equally frustrating problems with Fedloan Servicing.: Intentionally misleading correspondence, rude and unhelpful agents, and a total lack of concern toward my multiple requests for a straight answer about my TEACH grant. I’m glad I found your article, but angry that so many people have had poor experiences with this company. I could tell you all about what they did to me, but that would take pages and pages. I filed a complaint with the BBB, but I doubt that will help; Fedloan Servicing is not BBB accredited, so they are under no obligation to give two Shakespeares.

  87. Jeanie says

    I have had the worst possible experience with Fed Loan Servicing. I have also been in tears from the frustration of talking to the representatives who seems to have absolutely no idea what they are talking about. Even their supervisors cannot seem to get it right!! I seem to get different information every single time I make a call. I have called over 7 times in the last week and have spoken to 2 different supervisors and and they are still unable to get things straight. I have sent a complaint to the BBB and have made a call to the ombudsman. I have been in public service for the last 4 years but will not be able to even apply my payments towards loan forgiveness since the rep spoke with when my loans got transferred to Fed Loan Servicing indicated that I was on a plan that was not eligible for PSLF and changed my plan to a different plan, which in the end was NOT an eligible plan. I don’t even know what to do anymore and cannot trust anything these people say.

    • missmacintx says

      All you need to do is document your payments, 120 required, not consecutive, that corresponds to your public service position…month for month. match your paystubs/proof of public service employment, to the proof of payment…and match that to the payment level you are supposed to be in at that time (Adjusted for AGI/ Income Based Repayment or ICR). I have been specifically told by FedLoan that I could be in a zero payment level, with an AGI of < 150% of poverty level, working a Federal job, and still accumulate qualifying months of PSLF. If that is not true, then I am screwed, too. I think a complaint against the servicer is the next step, but that complaint needs to go to Congress and the US Dept of Education. This program has been all smoke and mirrors since I last tried to qualify for it in 2009!!!

  88. MonicaC says

    Add me to the group of frustrated fed loan servicer customers. I have direct debit on my account, am enrolled in the income based repayment AND public service forgiveness programs, and have faithfully made on time payments since 2009. I started a Ph.D. program in 2013, at which time I decided to waive my in school deferment to continue applying payments toward my forgiveness. This year, my payment increased significantly even though my income did not, and I realized that if I could apply that money to higher interest debt for now, I could be debt free except for these student loans by the time I finish graduate school. So, I called them and requested to have my waiver removed. I had to fill out and fax a form, which I did. Nothing changed. I ended up calling twice and speaking with 3 reps before the deferment was placed back on my account. The last rep I spoke with said that the request to have deferment placed back on the account could take up to 30 days, so she put my account in temporary forbearance. I budgeted the next month (I get paid monthly) accordingly and applied my normal payment toward an extra car payment. I budgeted so that I would have $100 a week to pay for food and gas in my car for the rest of the month, and everything was great – until I logged into my bank account and discovered that fedloan servicing auto debited my account for the full payment. I called again, and was told that it was their mistake and that I would be issued a refund that would take 30-60 days to process. Given my experience with their information, I called today (30 days after this) and was told that THE REFUND REQUEST WAS NEVER SUBMITTED. OMG what the hell is wrong with these people? I expressed, very politely, my frustration with the constant misinformation that I am being given and got a flat, non emotional response of “do you want to speak with my manager?” I replied that I did not think that was necessary; I just wanted correct information and was not interested in complaining – just fix it, please! She told me she put in the request and it will take 30-60 days to process.

    So, here I am, still waiting. On another note, I have submitted my public loan forgiveness employment information every year, and yet half of my payments are not showing up on my account. At this point, I think it would be better to just submit documentation once I hit my 120 payments, so I only have to deal with these people once. That is, if they are still in business!

  89. doomflower says

    I am glad to hear I am not alone and feel you guys on your suffering…. I have had so many problems and it just makes me more angry to talk about it.
    Is there any way to get loans served by a different company? has anyone ever personally moved their loans to a new servicer? I don’t think this company deserves any part of my money, time or effort.

  90. NA NA says

    I just had a horrible experience with FedLoan. I must say that I never had these issues with SallieMae, which serviced my undergraduate studnet loans. Then the feds allowed FedLoan to service my graduate loans. Anyway, I scheduled a payment on 09/30 in mid-August. Then on 08/27 I logged back on and changed the due date/payment date for the scheduled payment to the current day–08/27. They processed the payment. They took the money out of my account. Then on 08/02 they processed a second payment against my checking account overdrafting my checking account as my student loan payments are huge. When I called them they said to ask my bank to stop payment. I tired but Bank of America said once it was “processing” they couldn’t do anything about it. So I called FedLoan back. I got this rude woman who apparently took offense as to what I was suggesting. Long story short I had two checks bounce and one automatic draft be returned without payment. And I had two other online payments be returned without payment because FedLoan said the refund to my account would take up to 30 days. I of course filed a complaint with the Federal Loan Ombudsman. And I filed a complaint with my bank. But so what? Look at the damage done.

  91. Nathan says

    Since FedLoan became my servicer, I just passed my yearly IBR “income verification” period but did not receive an email warning me that my payment was going to triple if it wasn’t received. Admittedly, it’s my fault for not remembering my “anniversary” date but I suspect FedLoan is incentivized to not remind people in time since it means more money being payed back.

    So I had to agree to a 3-month forebearance to give them time to process my paperwork showing my income has not changed. So instead of $350/month, now they get nothing so that I don’t have to pay $850/month while we all get on the same page. Seems counterproductive to me.

    Will try setting up “paperless” only communication so they don’t split up important messages between snail mail and email. Conversely, after reading these comments, I’m considering going back to sending checks in the mail instead of direct debit so they can’t reach in and take what they want.

    • Nathan says

      Update to my last about IBR income verification: Turns out FedLoan servicing forgot to suspend my direct debit when I went into forebearance to give them time to process paperwork so they debited $850 and are now trying to get me a refund. Meanwhile, they suspended my forebearance without consulting me because the paperwork went through.

      Ok fine, sort of, except they forgot to reinstate direct debit so my next payment on 11/28 would have been delinquent if I hadn’t called to make sure.

      More to the point, are folks here aware that FedLoan Servicing moves your interest rate up and down during periods of forebearance? Because you get a 0.25% reduction for being on direct debit and when you are on forebearance, you are not having funds debited, they jack up the rate (for me) to 6.875% then back down to 6.625% when forebearance ends.

      Since interest is calculated daily, this means that FedLoan Servicing is potentially making lots of $$ on little mistakes like mine above where I had direct debit suspended for longer than was required.

      • drst says

        I applied for an income-contingent plan for the PSLF back in August. It took two months for them to even acknowledge that they got the paperwork. Once they processed it? My payments were more than my rent, and planned out for 10 years. Guess what? The PSLF requires 10 years of payments, so I would get nothing forgiven. They also used my gross yearly income to base their calculations on, insisting that “nobody” adjusts for taxes taken out, which is garbage. Any time you report income from a tax form, you’re not reporting the total gross, because there have been pre-tax deductions by the government.

        I then pointed out to the incompetent fool on the phone that the salary they were using was for a job I only started in the middle of the year, so I would be earning less than half of the gross. The woman on the phone’s brilliant response, “Oh. Yeah. I guess so. Well there’s nothing we can do about that.”

        This company is the worst. They keep moving the start of my repayment back a month without telling me, while interest keeps accumulating, by adjusting my repayment plans and putting me into a forbearance, which I have never asked for. And their website is useless. I wish I could file a complaint with the DoE to get my loans handled by someone competent! If such a company exists.

  92. Nathan says

    Another interesting fact: Fedloan Servicing took over my loan from my prior servicer in June 2013. That year, they only sent me a 1098-E tax form reporting the interest I paid for the 6 months I was with FedLoan Servicing. The $1000+ I paid to the other servicer was never reported. (mind you, they had not problem recovering my routing number from the old servicer)

    This means that my Adjusted Gross Income for the year was incorrect (because the student loan interest deduction lowers AGI).

    This also means that my IBR payment calculations were wrong for the year because IBR payment amount is calculated partly on how much you make (i.e., your AGI).

    Also seems like a way FedLoan Servicing could be making a lot of extra $$ since I’m sure I’m not the only one this happened to.

  93. Marrissa says

    So today I checked mu credit score and it appears that not one,but two loans where taking out in my name…Using my maiden name which I have not used in 8 years plus my bday and social…I’m furious.How does that work?Do they not get background info or confirm people are who they say they are?I’m just so upset right now. Seriously how do you get a loan without proof of person,do they not ask for ID~ How is the money disbursed?Is it in check form,direct deposit?OR WHAT? I just do not see how someone can fraudulently take out a loan without showing some sort of proof of person.They have been informed of this and a fraud package is being sent to me,but it seems the security of loans should be higher.

    • Marrissa Johnson says

      Has anyone else had an issue like this??? I’m 7 months into this and nothing has been resolved yet!!!

  94. Melissa E. says

    I contacted Fed Loan because my payment jumped from my IBR of $28.65 to $299 in December with no notice. I contacted Fed Loan and the rep told me I had not completed my annual reapplication for my IBR. I had looked at my payment history and my IBR appeared to have started in May and was supposed to be good for 12 months. The rep told me that I had applied back in December and that my full December payment had been spread out over 4 months once my IBR request had been approved. I received no notice: no phone call, no email, no message in my account inbox. When I asked about reapplying and asked if I needed to put my loan on deferment until the application was processed, the rep said I didn’t because they would take my application into account and adjust my amount past due accordingly. Well, you can probably guess what happened. I got approved for IBR again (somehow, despite making the same income as last year, it went from $28.65 to $218.00!!!) but my past due amount did not get adjusted. Now, I am nearly $600 past due and making catch up payments.

  95. Chelsea says

    Good afternoon all,
    I am (yet another) victim of FedLoan Servicing.

    My story: I started paying back my loans a couple months early and have continuously overpaid my loans by a couple hundred dollars to make my principle minimized. However, FedLoan Servicing pushed my loans into a “Delinquent” status. How can my loans be delinquent if I have been paying on time and at a higher amount? Because I did exactly what they told me: I paid the “Current Payment Due” amount. Thus, allowing FedLoan Servicing to “mistarget” my payments. Not to mention I have tried to set up Direct Debit several times, but FedLoan Servicing has never set it up.

    I am sick of this company and want to get away from them. How can they get away with taking so much money, and causing so many problems?

    I am paying back my loans in a timely manner and am even giving more then requested. Yet, they put my loans as Delinquent and work to ruin my credit score.

    Any advice from anyone?
    I need as much help as possible, as I have not had any contact back from FedLoan servicing since they changed my loans to Delinquent.

    Thank you all for your time.

  96. Megan says

    After making 10 qualifying payments to have my loans forgiven I switched jobs, I no longer qualify to be in the loan forgiveness program and they wanted to up my payments to $500 a month. I went into forbearance because I was unable to make the payments and had called them to say so. Once my forbearance of 2 months was over I started making more reasonable payments. However I would get a letter stating the amount that would come of direct debit every month and a week or so after that letter I would receive a letter stating that I was delinquent in my payments. How could I be delinquent when they direct debit from my account? After 6 months of calling and getting the well its taken care of I finally contacted my congressman and was able to get a supervisor at Fedloan. They had been allocating payments on the wrong months and only paying interest. Their error had me in tears many times. Now I am looking to purchase a new home and am terrified that they have ruined my credit score as I had perfect credit before this fiasco!

  97. Dawn says

    Is there an advocacy group that oversee all of these complaints? After dealing with with the Sallie Mae for over 10 years and now Fed Loan to get loan forgiveness and been paying for over 2 years, they told me that NONE of my payments qualify. These are crooks and need to dealt with!

  98. Carina says

    I agree!! Fedloan is the worst loan ever!!! I reset my password like 6 times!! I wrote down my password on a piece of paper six times and when I try to log in right away each time. The stupid ass website says it is the wrong password!! I hate this website. I sign up for student loan forgiveness so I don’t have to deal with them anymore! I stop paying them cuz their service suck and their online help suck even more!! All I can say is that I can’t wait to get rid of them.

  99. Michele says

    Can you get out of FEDLOANS if you already have them? Can I go with a different company?
    I have been trying to do income contingent and they base it on my husbands salary. If they based it on my per deim subbing then I would have a $50 a month payment.
    Any help??
    Thank you

    • says

      No, you can’t. They have to base it on the total family income – since you’re married, both of your income’s count. Your’s is per diem, so it is lower than your husbands and they combine the two.

  100. Ayva A. Mata'utia says

    FedLoan recently approved my IBR request submitted by the third party I’ve dealt with from the git-go and surprisingly, my current monthly payment is $0, which means my loan status is now on forbearance and my interest will continue to accrue. To be frank, I wish to continue with my monthly payments instead of having an increasing amount of interest that I will have to pay later. Anyhow, after reading all your individual complaints, it simply made me develop mixed emotions about this company. I’ve had issues with them before with respect to loan consolidation, well actually with the thrid party that assisted me throughout the consolidation process. As a matter of fact, I was convinced that if I were to consolidate my loans, all my previous payments made towards the loans when they were under Sallie Mallie will still count as the 120 payments I must make in order to be eligible for forgiveness. Apparently, I found out later on from FedLoan after making a few payments towards them that all the previous payments I made towards Sallie Mae are no longer included within the 120 payments. I’m starting from scratch is what they told me smh. So I’m a bit anxious now to find out if there’s a way we can get out of this mess, FedLoan in particular because I honestly want to make payments in an equitable manner.

  101. Leia Welsh says

    I recently consolidated my loans and like all of you I was not given a choice on vendors. I am very unhappy with their services…I’m nervous they are going to mess something up. It takes a very long time for them to process anything and their mail seems to be very delayed. I made an online payment three days before the due date and two days after the due date it said it was still waiting for my payment. I was not penalized or anything, but this does not seem to be a reliable company. I would like to be able to trust a company that is handling such a an important part of my finances.

  102. FedUp Servicing says

    There isn’t much that’s consistent at FedUp Servicing but I have to admit there are at least two things they do consistently: They consistently say one thing then do another and they consistently don’t follow their own rules. I commend FedUp Servicing for being consistent in two of their efforts.

  103. orielsy says

    FedLoan might as well be scammers. They are already liars and rude as hell.

    Here’s a problem I had with them at least twice. I go online make a payment on their crappy website. A few days later I get a phone call from someone at Fedloan reminding me I’ve yet to make a payment. I tell them I made a payment and provide the payment verification number. The lady on the phone says that payment isn’t showing up on her records. She urges me to make a payment over the phone and I do. A few days later BOTH payments hit my bank account! I call FedLoan and ask WTH happened. They don’t have any answers except subtly implying their computer systems suck. I speak to a manager who tells me refunds take up to 90 days!!

    Great now I’m broke for a month.

  104. orielsy says

    Here’s the most recent one.

    I set up automatic payments through their website. I’m told the payments won’t start until next month so I still need to make this month’s payment manually. I make the manual payment because my due date was in about 2 days. About a week later I get a phonecall saying I’m late on payment. I give the person my confirmation number and it doesn’t show up in her system. I’m urged to make a payment over the phone to rectify the issue. I make the payment.

    Three days later 3 equal transactions hit my bank account. The original payment I made, the stupid auto payment that wasn’t supposed to start till the end of the next month, as well as the new payment they “forced” me to make because I was supposedly late.

    I swear before god almighty I didn’t exagerate this one bit.

  105. says

    They received a payoff check from us on Monday. It cleared today. There is no payment posted in the account. Daily email inquiries go unanswered. You get an auto reply telling you that someone will get back to you but nobody does. I’ve had loan with Great Lakes and Granite State and received excellent service. This is inexcusable. Especially since or has been going on for so long judging by the long history of service complaints.

  106. David says

    This is what happens when we let the government run our lives. They build up the outstanding student loan debt and sub out the managing to one of their cronies to pocket loads of money for subbing it out to someone else to do all the work and rake in the interest payments to load up their pockets. No doubt a friend of someone in the administration… Big government needs to be dissolved. They are only stealing our hard earned money.

  107. Jessie says

    These crooks just withdrew $1000 from my checking account and I don’t owe any student loans. I called my bank and put a stop payment on the payment and then called FedLoan Servicing and they can’t even find me in their system. I’m so frustrated right now!!

  108. Kate says

    Wow I cannot believe how many people have commented on Myfedloans.org because I’m starting to have issues with them too now. I wrote almost two pages of problems on Microsoft Word and copied it to an email last Monday and I still have not heard from them. When I email most businesses they always respond to you within two business days, but I’m still waiting for FedLoans to email me back. I have about $30,000 in debt with them and this is my only debt and it is very frustrating because I pay roughly $100 every two weeks to them towards the interest on specific loans that I owe interest on but it the interest just keeps going up, while the principle is only going down slightly. Before when I made payments it would have taken it out of the interest and I never changed the way I paid for interest, but now it just won’t even touch my interest, and I don’t even have to start making payments until February and my interest is already over $500 when it should only be less than $25.

    I don’t like to that they don’t have accurate payment dates or what loans they went to. On my homepage it says my last payment was in January and on my payment history it says my last payment was in March, so where is my payments in detail since March. Also, when I make payments anywhere else they always get taken out of my account within 3 days, but not with this lender, so while my payment is on hold my interest will just keep going up. The confirmation emails for payments is confusing to because they always say the balance went directly to your principle, but yet sometimes it does and other times it goes to the interest. I’m also scared to death to setup a direct deposit thing with them too because the last time I did that I got almost $200 taken out when I shouldn’t have gotten any money taken out and I didn’t even get the money back until about two weeks later and that $200 had to last me for two weeks. I just hope I’m not going to have worse off issues like some of the people who have commented on here already.

    Did anyone ever have any successful results with this lender in the end? Also, does anyone recommend a good service I can go to after I graduate in August to get a better financing?

  109. Greg says

    We are having serious problems with fedloan around them not giving credit for teach grants that have been fulfilled with the 5 years of teaching in the appropriate schools – they claim we did not respond in a 30 day period (which we did) and that because of that they have nullified the grants and converted them to loans despite 5 long years of teaching service fullfilled (with certificates sent in) as requested by the dept of eduation several years back when they were really looking for qualified science teachers…!!!!! UNCONSCIONABLE!!!
    Anybody have any suggestions on next steps?

  110. Nicole says

    This is the worst organization I have dealt with. The customer service reps are unqualified and give inaccurate information. I have been trying for 3 months to get a loan of 152.89 paif in full. They keep applying my payments to interest. Help, I need to get out from under them.

  111. Raychel says

    Just looking for some advice on where I make a complaint about Fedloan Servicing. My student loans were sold to them last year without my consent. Same story as most people, I got a letter in the mail informing me of the change after it was already processed. Since then I have been trying to pay off my loans in full. The closer I get to paying them off, I notice that Fedloan Servicing tries to do everything to prevent that from happening. First, they cut my automatic loan payment each month. Thats fine, I just pay an additional payment. Then when I wanted to pay off with a 0% credit card, I was told that they don’t take credit card payments at this time. The other day I tried to make my additional payment on a weekend and I was prevented from making payments on the weekends. I sent an email using their comment section asking why they don’t take payments over the weekends and I asked them to confirm that they don’t collect interest on weekends if they can’t accept payments on weekends. I got a quick response with links for people that are having issues paying their loans. I’m almost paid in full, this makes no sense and doesn’t answer my questions. I wanted to complain to the site for Federal Student Loan complaints but Fedloan Servicing is not one of the options as a servicer. Does anyone have any idea where my complain can be heard? At this point, I’m almost paid, but this is not fair to people that still have a long pay until they pay in full.

    • says

      The Department of Education and the Consumer Finance Protection Bureau are your best bets. However, realize that:
      1. You can’t pay a loan with a credit card
      2. No financial institution takes payments on the weekends. Even if they accept them, they don’t post until the next business day.
      3. You get no say in your loan servicer. It’s decided by the Department of Education.

  112. Neil N says

    Hi all – OMG, I share your grief.

    I just got a letter from FedLoan saying my interest rate was going up by .5% , this is after making additional payments of almost 50K over the last 2 years because we want to kill the loan. The cust service person had no idea if what I was telling her and the supervisor said that they apparently made a computer error when calculation my interesrt rate and the new rate would be applied from a year back. That’s adding 4-5K to my loan – these people are crooks.
    Please let me know if anyone has filed a law suit and I would be happy to join them.

  113. Dana F says

    I have a problem with this company. My bill shows that I am due to pay about $40. When I look at each of my loans I need to pay about $251 including unpaid interest. I don’t understand why there isn’t a detailed bill and why my due amount isn’t the same the amount shown when I open up each account individually.

  114. Jeff says

    How does fedloan apply the .25% rate reduction? I was originally at 6.75% with a $1400 monthly payment. Over a year now on autopay, they say I’m at 6.5%, but my monthly payments have never changed, and neither has my number of payments. Where is the reduction? I will pay the same out of pocket. Doesn’t make sense. Also good luck trying to get a full schedule of payments on your account.

  115. Van says

    This company is an absolute nightmare. I have a list of complaints. The customer service is terrible. Depends on which rep. you get that day. You will have 5 different answers to every question. You have to call at least 5-7 times to have your inquiries resolved. I’m in on any class action lawsuit. I can’t believe this company is in existence.

  116. Aaron says

    Oh man I have had all sorts of issues with my loans. But a few good examples of their lackluster customer service.

    I had a hard time consolidating everything (well they had a hard time) I was calling them on a near daily basis. They did multiple reviews, on time I called and the rep said oh it looks like the review showed you actually have a lower interest rate (the loans were different rates and they seemed incapable of finding the right one once consolidated). The rep was happy and trying to point out it was a good thing. I was thinking, seriously that is not good. I mean sure lower interest is great, but it means you got it wrong the first time! If I hadn’t requested a review the interest rate would have been higher and would have cost me thousands of dollars. It wasn’t lowered cause they liked me, it was lowered because it was wrong.

    Another time a sent an email requesting help with some questions. They kind of answered one but not really and just ignored the rest. I responded and said I have no reply and they kind of answered another one but still left some. One of my questions was in regards to when I could request a change in the income based payment because my child was being born. I thought Ohh I should probably do it about when he is born. They never answered that question but when I went to do my annual certification the dept of ed website specifically noted that a change in family says applies for the whole year. So even if the kid was born in Dec I could have requested a change earlier (which makes sense because that is how the IRS handles births). If I would have applied earlier I could have saved more money. They sure didn’t care to even address my question.

  117. I.M. says

    I have also had horror issues with FedLoan, which were finally solved (fingers crossed) by contacting their ombudsman at 717-720-7605, I highly recommend taking your issues directly to them. If that does not work, I recommend contacting the Consumer Financial Protection Bureau (consumerfinance.gov) and the Department of Education’s ombudsman at 1 (877) 557-2575 or https://studentaid.ed.gov/sa/repay-loans/disputes/prepare/contact-ombudsman?nointercept/1

  118. scott kiersten says

    they ripped me off ! I paid a high interest balance and went back on the site only to see almost $300 back on the account only to be lied to and told that was unseen interest!!! How could $300 of interest show up within days?

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