A loan servicer is a company that the Department of Education assigns to each borrower to handle billing, repayment options and other services for your Direct Loan. To determine where your federal loans are being serviced, please visit studentaid.gov.  Servicers that are currently contracted with the Department of Education are:

Loan Servicer






Mohela Federal 





Federal Perkins Loan


Heartland ECSI


Default Resolution Group- For Perkins loans submitted for collections with the Dept. of Education


The Department of Education may need to transfer your loan to a different loan servicer.  If this transfer occurs, your loan will still be owned by the Department of Education - it is just that you will be working with a different agency to make payments, change payment options, etc.
Per the studentaid.gov website (https://studentaid.gov/articles/your-loan-was-transferred-whats-next/ )if your loan is transferred to a new servicer:
  • You will receive an email or a letter from your assigned servicer to inform you about the transfer.

  • You will receive a welcome letter from the new servicer after the new servicer receives your loans. This notice will provide you with the contact information for the new servicer and inform you of actions that you may need to take.

  • All of your loan information will be transferred from your assigned servicer to your new servicer, but you may only be able to see online information that covers the period since your new servicer took your loans over.

  • There will be no change in the terms of your loans.

  • Your previous loan servicer and new loan servicer will work together to make sure that all payments you make during the transfer process are credited to your loan account with the new servicer.

After you receive the welcome letter from your new servicer, you should do the following:

  • Begin sending your loan payments to your new servicer. If you use a bank or bill paying service to make your loan payments, update the new servicer’s contact information with the bank or bill paying service.

  • Follow the new servicer’s instructions for creating an online account so that you can more easily communicate with the new servicer and keep track of your loan account.

FSA Student Loan Ombudsman:  Borrowers may contact the FSA Student Loan Ombudsman if they are experiencing any challenges or disputes with their loan servicing agency.  This is a free service that may assist you in resolving any complaints you may have with your federal loan servicer.
U.S Department of Education
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
Phone:  877-557-2575
Fax:  606-396-4821