You should not consolidate your federal student loans together with your private education loans. They should be consolidated separately, as the federal consolidation loans offer superior benefits and lower interest rates for consolidating federal student loans.
Herein, can I choose my student loan servicer?
When you take out federal student loans, you don’t get to choose your servicer. The Department of Education assigns you one, whether it’s Navient, FedLoan Servicing or another of the student loan servicing giants.
Accordingly, is FedLoan servicing legit?
Here’s the scoop: FedLoan Servicing is a legit company. It’s one of several student loan servicers contracted by the U.S. Department of Education to handle federal student loans.
Is nelnet a federal loan?
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.
Should I consolidate my federal student loans during Covid?
In the short term, a federal consolidation loan can help you gain access to the temporary emergency benefits of 0% interest and automatic forbearance. In the long term, it can make it easier for you to manage your federal student loan debt because you will have a single monthly payment and one student loan servicer.
What do loan servicers do?
Your loan servicer typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, manages your escrow account (if you have one). The loan servicer may initiate foreclosure under certain circumstances.