How to Fix Fedloan Servicing Problems – PSLF, Credit Score, Customer Support, Payment

Common Problems/Complaints with FedLoan Servicing

  1. Repayments are not counted properly under PSLF (Public Service Loan Forgiveness) resulting in the delay to get the benefit of PSLF or not getting loan forgiveness.
  2. Delayed and inaccurate processing of payment resulting to affect credit score and repayments not counted for PSLF benefits.
  3. Terrible Customer Support Service. Customer Representative are incompetent and not able to resolve the issues faced by borrowers
  4. TEACH Grants are not allowed due to minor paperwork errors. Further, the Fedloan allegedly added interest, resulting in tens of thousands of dollars of new debt instead of a grant.
  5. Delay in processing of income-driven repayment plan requests. This plan gives some relief to a borrower who can’t afford monthly payments.
  6. It is alleged that Fedloan has overcharged many borrowers and collected thousands of dollars from borrowers that they did not owe.

Customer Reported Complaints Against Fedloan Servicing 

“Not calculating the number of repayments that count toward Public Service Loan Forgiveness”

“Not Eligible for PSLF, As Your Account is in “pay ahead status”

“Unhelpful,” “Incompetent,” and “Inconsistent Customer Support”

“Payment is not counted towards PSLF Even if it was on auto debit mode”

“Credit Score Dropped After Loan Forgiven”


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    In the United States, graduates leave school with an average debt of $37,000. According to a Forbes Report, there is serious crisis of Student Debt Loan in the United States. The below data shows how serious it is:

    Total Student Loan Debt $1.56 trillion
    Total Borrowers 44.7 million
    Delinquency Or Default Rate(90+ days delinquent) 11.4%

    How Federal Student Loan Servicing Works:

    1. Apply for Student Loan and Choose a School
    2. School Receives Fund
    3. The borrower is assigned to a Federal Loan Service Provider like FedLoan Servicing
    4. After Graduation and grace period, the Loan Repayment Term Begins
    5. All Payment is made directly to Federal Loan Service Provider

    FedLoan Servicing

    FedLoan Servicing is one of the Government approved loan servicer for all the student loans made by the federal government. It manages the Federal Student Loans, collects payments, resolves repayment issues and assists borrowers to repay student loan based on different types of plans set up by the Department of Education.


    Answered on June 11, 2019.
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