MyFedLoan Review: Is MyFedLoan Servicing Worth it?

Advertising Disclosure: Some of the links in this post are from our sponsors. We may get paid when you click a link. We strive to introduce you only to unbiased and honest recommendations; however, any opinions, analyses or reviews that may be presented are those of the author’s alone, and have not been approved or otherwise endorsed by

MyFedLoan Review: Is MyFedLoan Servicing Worth it?

Graduation is one of the happiest and most exciting times of anyone’s life as they prepare to enter the professional world and put the skills and knowledge they’ve learned to the test. However, it’s also a time when millions of graduates have to think about something very important: repaying their student loans.

The US Department of Education issues federal student loans, but it’s loan services like FedLoan Servicing that actually handle the payments. Many graduates will get to know FedLoan Servicing very well, working with them for 10 years or more to make payments on their loans, ask for help, and even potentially get student loan forgiveness

The Basics of FedLoan Servicing Payment

Millions of people around America are grateful for the existence of student loans. Without this system in place, college education would be exclusively locked off to the wealthy, and parents would have to save up for years or hope that their children somehow earn a scholarship in order to actually enjoy the benefits of higher education. 

The latest statistics regarding student loans show Americans are currently dealing with a combined total of $1.56 trillion of student loan debt. All across the country, in many fields and sectors, people are having to pay back hundreds of dollars each month on their student loans on average.

Many students take out federal loans, and the Department of Education then assigns them to a loan service. And once assigned, you’ll be stuck with it unless you decide to refinance. FedLoan Servicing is one of the biggest and most commonly used. FedLoan Servicing is a nonprofit organization operated by the Pennsylvania Higher Education Assistance Agency (PHEAA), and it was created to handle student loan servicing of Direct Loans made by the U.S. Department of Education.

Despite being based in Philadelphia, PHEAA and FedLoan Servicing operate all across the United States. The one goal of the organization is to help people pay off their student loans, and it offers a range of services to help you do this. It applies to students who took out one or more of the following loans: 

  • Direct Subsidized Loans 
  • Direct Unsubsidized Loans 
  • Direct PLUS Loans 
  • Direct Consolidation Loans

You can make use of the National Student Loan Data System to check whether or not FedLoan Servicing is your designated loan servicer.

Is FedLoan Servicing Legit? 

Some people wonder whether or not FedLoan Servicing is a legitimate servicer. The simple answer is yes. FedLoan Servicing has been involved in some scandals and controversy. There was even a FedLoan Servicing lawsuit case in which Massachusetts Attorney General Maura Healey filed a lawsuit against FedLoan Servicing.

In simple terms, the Attorney General argued that FedLoan had been neglecting its responsibilities to borrowers, failing to live up to the standards set out in the Public Loan Forgiveness Program and TEACH Grant Teacher Loan Forgiveness Program. FedLoan Servicing is responsible for the management of both of these programs.

According to the lawsuit, FedLoan mismanaged applicants for these loan forgiveness programs, under-counting eligible payments for the PSLF program and making people wait longer and have to make more payments before getting the forgiveness they were entitled to.

Due to this scandal and other issues, FedLoan reviews are often negative and feature complaints and criticisms. In spite of this, it’s still vital to note that FedLoan, for all its faults and flaws, is a legitimate loan servicer. It’s also important to be aware of all the different services and features of FedLoan so that you’re best equipped to have a positive experience and not have to file any complaints of your own.

The Pros of FedLoan Servicing

Despite its faults and some negative FedLoan Servicing reviews, this loan servicer does have plenty of plus points that are worthy of note. Here’s what we like about FedLoan Servicing:

  • Lots of Repayment Options – FedLoan Servicing provides a huge range of repayment plans to choose from, ranging from the standard 10-year repayment plan through to income-driven repayment options like RePAYE and IBR, as well as extended fixed repayment, income sensitive repayment, and graduated repayment. If you want to make payments while in school or during the 6-month grace period after graduating, you can do so, and FedLoan Servicing is very flexible in terms of its overall payment structure, even letting you choose your own payment due date in line with your personal finances.
  • Following the Rules – As one of the major loan servicers trusted by the US Department of Education, you can expect FedLoan Servicing to follow the rules, honoring all federal student loan benefits and applying all necessary subsidies, where applicable. It also honors both in-school and grace period deferments and ensures that the fixed student loan rates you saw when you applied for the federal student loans are maintained, without any hidden charges or changes.
  • Ease of Use – FedLoan Servicing has made big improvements in recent years regarding its ease of use, developing a simple smartphone app that you can download to make payments, view your account details, such as loan balance, enjoy the benefits of paperless billing, and generally manage your loans more conveniently. The app is available on both Apple and Android devices. FedLoan also lets you manage your account and make payments both online or by mail.
  • The PSLF – Student loan forgiveness is the dream of many graduates, and FedLoan Servicing is in charge of one of the most significant loan forgiveness programs around: PSLF. The Public Loan Service Forgiveness Program can wipe out all of your outstanding debt after making 120 qualifying payments. It lets you pay off loans for 10 years and then get the rest forgiven, providing you work in a public service role like a nurse or a teacher and that you meet the other eligibility requirements too.
  • Other Benefits and Special Programs – FedLoan Servicing is also responsible for TEACH Grants, which is a program that can offer up to $4,000 of support to students working towards a career in teaching. In addition, FedLoan Servicing can offer exclusive benefits to active members of the military like the ‘no accrual of interest benefit’ which reduces your student loan interest rate down to 0% for a period of up to five years.

The Cons of FedLoan Servicing

Unfortunately, it’s not all smooth sailing with FedLoan Servicing. As we’ve seen above, this has been subject to a lot of complaints, and there was the aforementioned FedLoan Servicing lawsuit too. Here are some of the downsides concerning FedLoan Servicing:

  • Bad Experiences – There have been upwards of 500 complaints posted about FedLoan Servicing on the Better Business Bureau site in the last three years. Official, critical FedLoan Servicing reviews have often been overwhelmingly negative too. It’s important to put these issues into context, as no loan servicer is flawless and all of them get bad reviews sometimes, but the fact that FedLoan had a lawsuit filed against it hasn’t helped the company’s overall reputation.
  • Customer Service- Most complaints and negative FedLoan Servicing reviews tend to talk about the organization’s customer service. Some reviews have stated that the customer workers are friendly and polite, but that they can sometimes provide poor quality or unclear information, as well as failing to deal with many issues that people encounter, placing their financial situations in jeopardy.
  • Lack of Information – Again, according to many user and critical reviews, when you work with FedLoan Servicing, you’re the one who has to do a lot of the work in order to find out exactly what options you have, what you’re entitled to, how you can potentially apply for the PSLF program, and more. 


Making a FedLoan Servicing Payment 

As seen above, one of the main advantages we listed with FedLoan Servicing is the fact that this organization gives you a lot of options in terms of making your repayments, including:

  • By Mail – If you like to do things the old-fashioned way, you can mail a check or money order direct to FedLoan Servicing via the following address: U.S. Department of Education, FedLoan Servicing, P.O. Box 530210, Atlanta, GA 30353-0210. 
  • Online – You can make manual direct payments to FedLoan Servicing through the organization’s website. 
  • Phone – You can call 1 800 699 2908 to make repayments too. 
  • Direct Debit – One of the simplest options and definitely the most cost-effective for you as a borrower is to make use of direct debit payments, linking an account to FedLoan Servicing and then letting the payments go through automatically each month. If you choose this option, you get a 0.25% discount on your interest rate. 
  • App – You can download the FedLoan Servicing app to your smartphone or tablet and make payments through that too.

FedLoan Servicing: Is it Worth It?

FedLoan Servicing is not a perfect servicer, but it can work out fine for many people. The best lesson to learn for FedLoan Servicing borrowers is that you’ll have a better experience overall if you take the time to do your research and know all about your different options, as well as following typical good borrower behavior.

Be sure to make every FedLoan Servicing payment on time in order to avoid any problems, and take a look at the different FedLoan Servicing repayment plans to find an option that works for you. Downloading the app is a good idea too in order to help you keep track of your account, and you can use the official FedLoan Servicing site and Federal Student Aid resources to learn more about things like the PSLF program.

In the end, the best way to have a good experience with FedLoan Servicing is to make your payments and minimize the amount of time you actually have to deal with the organization. You can also use to make sure you’re on the right Federal repayment program, and even explore loan forgiveness options.