What Can You Do If You Have Two Federal Loan Servicers?

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By Mark Kantrowitz

June 30, 2020

Sometimes borrowers end up with two student loan servicers for their federal student loans. Borrowers can ask to have their loans switched to a single loan servicer.

The U.S. Department of Education tries to ensure that Direct Loan borrowers have a single loan servicer for all of their loans. But, sometimes there is a serialization failure and the borrower will have two servicers. This most often occurs when the loans were obtained during two separate time periods, such as for undergraduate and graduate school loans.

If you tell the loan servicers about the problem, they can arrange to have the loans transferred to a single servicer. You can also contact the FSA Ombudsman at the U.S. Department of Education.

If you file an employment certification form (ECF), all of your loans will be transferred to FedLoan Servicing, the contractor who manages the public service loan forgiveness program. You can also choose a single servicer if you consolidate the loans. However, consolidation can reset the qualifying payment count for loan forgiveness. 

A good place to start:

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