News! Federal Student Loans Recalled

If you have a federal student loan, this is important news for you.

The U.S. government has recalled loans from several student loan servicing companies, including Navient and others.

This does NOT mean the debt is waived or forgiven. You still owe the loan debt. What it means is that who you make payments to will or has recently changed.

WATCH OUT!

If your payments are set up on auto-pay, it can happen for your payment to go out to the current servicing company rather than to the new one. THIS CAN RESULT IN A LATE PAYMENT ON YOUR CREDIT REPORT.

You need to pay diligent and careful attention to your automatic student loan payments to make sure you do not incur a late payment that is false and not your fault. It has happened many times to other people when their student loans were transferred from one servicing company to another.

Watch for a notice of a new loan servicing company and then call your bank to make sure the payments are set to the new servicer. If you did not see a notice but you have a federal student loan, then I suggest you call and ask. Better to prevent an error than to have to dispute the erroneous late payment later.

This does not apply to private student loans, only to federal student loans.

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