What student loan companies are federal?

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    There are mainly two kinds of student loans – private and federal. Federal loans are granted by the government. Private loans are provided by credit unions, banks, schools, or state agencies.

    Federal loans are usually preferred since they are set by law and have benefits like fixed interest rates and income-driven repayment options. They are also relatively less expensive. Private loans are usually more expensive due to higher interest rates and they offer less flexible repayment options and protections. 

    While the federal government owns the loans, it assigns a loan servicer company to each borrower that handles tasks like billing, collecting payments, processing forbearance (a period during which monthly loan payments are suspended due to financial hardship), and answering questions. The cost of working with a loan servicer falls on the government, not you. 

    Some of the federal student loan servicers are:

    • Edfinancial
    • Missouri’s Higher Education Loan Authority® (MOHELA)
    • Aidvantage
    • Nelnet
    • Educational Computer Systems, Inc. (ECSI)
    • Default Resolution Group

    To find out who your loan servicer is, visit your account dashboard and go to the “My Loan Servicers” section. You can also call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

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