December 14, 2021

Is FedLoan Servicing Legitimate or a Scam?

Chipper Help

FedLoan Servicing is a legitimate company connected to the Pennsylvania Higher Education Assistance Agency (PHEAA). FedLoan Servicing is among the eight companies offering federal student loan collection and tracking services. It is the only student loan servicer managing Public Student Loan Forgiveness (PSLF) program applications.

You might ask, “Is FedLoan Servicing a scam?” because of the organization’s poor reputation in servicing student loans. There were more than 760 complaints against FedLoan Servicing in the Consumer Complaint Database between December 2018 and December 2021. This blog highlights the different issues you can expect from FedLoan Servicing based on consumer complaints.

Issues With FedLoan Servicing

As of December 13th, 2021, many respondents have complained about FedLoan Servicing about its services, including:

  • Dealing With the Servicer: 597 people have reported having received bad information about their loan terms or balance, trouble with the handling of their payments, problems with customer service, and disagreements with their charged fees.
  • Incorrect Information on Report: 73 people complained about having incorrect account status and information. There were cases where people had information on their accounts that belonged to other people. Other people also reported that there was old information on their account that was no longer relevant.
  • Credit Reporting Issues: 34 people reported problems with a credit reporting company’s investigation into their accounts. These FedLoan Servicing users had problems with personal statements of dispute, not receiving updates regarding their account investigation status, untimely investigation services, submitting their disputes, and getting information for their account. For the most part, people reported that investigations did not resolve their issues.
  • Lack of Payment Options: 31 people reported having trouble repaying their loans. Perhaps there were no flexible student loan repayment options that suited their situation. These people also reported having problems lowering their monthly payments and having no option to temporarily delay their payments.
  • False Representation: 11 people had experiences with FedLoan Servicing where there was an attempt to collect the wrong amount of money due. One of these people reported that there was impersonation involved, where someone pretended to be an attorney, government official, or member of law enforcement regarding their account.

Avoid Student Loan Scams

Be sure to look into any company claiming to help you with your student loan status before dealing with them in any way. Consider how FedLoan Servicing has a bad reputation with their service. People would search for this company online and then read all about their issues. However, the company is still legitimate despite these problems due to their affiliation with an official organization (PHEAA).

Here are some warnings that can give away whether a student loan company is legitimate or a scam:

  • Grammatical errors in their messages
  • Unrealistic promises about student loan forgiveness
  • Charges you for their services
  • Insists on getting your account information

So, Is FedLoan Servicing Legitimate?

FedLoan Servicing is a legitimate service but has a reputation for poor customer service making people believe it is a scam. It is only right to be skeptical about student loan servicers claiming to offer help regarding your student loans. Consider seeking assistance from a student loan consultant if you remain skeptical about a company’s legitimacy.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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