Millions of American adults hold over $1.5 trillion dollars in student loan debt. The burden of student loan payments along with the costs associated with daily living can become too much to endure. As a result, individuals across the U.S. are searching for ways to reduce their student loan debt or, better yet, completely free themselves from student loan payments.
While searching for a way to financial freedom, many borrowers inquire about changing their student loan servicer. Many people believe that changing servicers is an effective way to reduce monthly interest rates or payments. Here, we’ll discuss whether changing student loan servicers is a viable option for most borrowers.
When Should I Change My Student Loan Servicer?
Before you even inquire about changing student loan servicers, you need to ask yourself why you want to make this change in the first place. If you’re currently making your monthly payments on time and within your budget, there might not be a reason to switch. However, if you feel like you’re suffocating in debt with no way to escape – it might be time to switch.
Common reasons why borrowers explore changing student loan servicers include:
- High-interest rates
- High monthly payments
- Lengthy loan terms
- Lack of payment options
If you’ve been receiving bills that you’re unable to pay but don’t know who your student loan servicer is, you can find out online. Studentaid.gov is a valuable resource to borrowers with government student loans who want to take control of their finances and begin to repay their debt.
What Should I Know Before Changing Student Loan Servicers?
Loan consolidation is the primary method people use to change student loan servicers. If you have more than one student loan, you can consolidate your student loans into one lump sum with one interest rate. Most people who consolidate their student loans are able to achieve a lower interest rate, lower monthly payment, or a shorter loan term.
To consolidate your student loans, you must apply for a loan with a student loan servicer. Information you should have on hand when you apply for a new loan includes:
- Current loan balances
- Current loan interest rates
- Current loan term lengths
- Contact information for any co-signers
- Personal information such as income, Social Security number, address, phone number, and employer details
Before you agree on loan terms, it’s important to go over every detail to ensure your new loan terms help you meet your personal financial goals. For example, if you’re consolidating your student loans to get out of debt faster, you will not want to consolidate your loans for a lower monthly payment but longer loan term.
What Are Alternative Options To Changing My Student Loan Servicer?
If you’re unable to change your student loan provider, there are still other options you can explore to make your payments more manageable. Viable student loan repayment management options include:
- Income-based repayment
- Interest-only payments
- Forbearance
- Deferment
- Loan forgiveness
Any person who is having trouble communicating with their student loan servicer should contact a trusted debt attorney as soon as possible. If the loan company is unwilling to accommodate you or is not informative about your options, you might have grounds for a lawsuit.
Erase Your Student Loan Debt With The Help of a Reputable Attorney
McCarthy Law PLC is a source of reliable legal representation for student loan borrowers. The attorneys at McCarthy help people in difficult financial situations find a way to win back their life. McCarthy Law PLC offers loan consolidation guidance as well as debt settlement representation. With the help of the knowledgeable attorneys at the firm, you could be on your way toward a life free of student loan debt.
To schedule a free consultation call 855-976-5777 or fill out our online contact form today. Don’t wait any longer – get help now.