Identifying Department of Education Loans: If you didn’t read the fine print carefully before you signed the dotted line that probably put you in debt for many years, student loans can be tricky. When students graduated, many of them were worried about how they would pay for other things in their lives at the same time they paid back their student loans. Most of the people who are paying back their loans don’t know which company owns their loans now that they have to. Don’t worry, though; there are ways to be sure of that information. Through careful steps, we will show you how to find out who owns your student loans and begin paying them back.
Does the Education Department pay back student loans?
To find out who owns your student loans, you must first understand the difference between who owns them and who services your loans. The person who gave you the money for school is called the provider, and they generally own your student loans. It has to be either a private business or the government. Loan servicers, on the other hand, are in charge of all loan payments. Of course, they also tell you what will happen if you don’t pay on time. Loan servicers are hired by both private and public lenders to handle student loans. But people who have student loans want to know if the Department of Education owns them.
Check your dashboard on the Federal Student Aid page. If the loans say “Depart of ED,” it means that the Department of Education owns them. The name of the loan servicer, like Nelnet, Aidvantage, or MOHELA, will also be there. In 2024, IDR loan forgiveness could be given to people who have made payments on their loans for 20 or 25 years. The Department of Education will keep forgiving loans as long as users have paid them off for the required number of months. That’s why you need to know if your loans are owned by the Department of Education.