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The moment you’ve been working toward for more than 15 years has finally arrived: You’re graduating college.
Diploma in hand, it’s time to find your first job so you can share all the skills you’ve learned with the world and start building a meaningful career.
If you’re like most recent college graduates, you probably have a mountain of student loan debt to pay off. This isn’t the least bit surprising when you consider that the average tuition for an in-state public university is $10,116 for the current school year. Private colleges are even pricier, with the average yearly tuition hovering near $36,801.
Now that you’ve graduated, though, you need to start thinking about how to repay your loans. The clock will start ticking soon. Once the standard six-month repayment grace period is over, interest will begin accruing rapidly.
In order to help you make loan payments, the U.S. Department of Education will automatically assign you to a loan servicing provider, which is a financial company that handles loan repayments.
There are a total of nine government-aligned loan servicing providers in the United States, and MyFedLoan is one of the largest.
So, in the loan repayment lottery, there’s a good chance that you’ll become all too familiar with their platform before you know it.
The good news is that if you’re looking to find out more about MyFedLoan, you’ve come to the right place. Keep reading to learn everything you need to know about this popular loan servicing provider.
What is MyFedLoan?
MyFedLoan is the online platform for FedLoan Servicing, a nonprofit student loan servicing organization that is managed by the Pennsylvania Higher Education Assistance Agency.
According to the agency’s website, MyFed Loan was founded to support the U.S. Department of Education’s ability to service federal student loans. The provider’s stated goal is helping students like you successfully repay your loans.
MyFedLoan serves borrowers whose loans fall under the William D. Ford Direct Loan Program. If you’ve taken out a Direct Subsidized Loan, Direct Unsubsidized Loan, Direct PLUS Loan, or a Direct Consolidation Loan, your repayments can be processed on the platform.
Further, borrowers who plan on working in the public sector and taking advantage of the government’s Public Service Loan Forgiveness Program (PSLF) are automatically paired with FedLoan Servicing.
MyFedLoan: How to Get Started
The first step to getting started with MyFedLoan is creating an online account, which should only take a few minutes. Simply visit the MyFedLoan website and click “Create an Account” on the top left to sign up.
Next, you’ll have to enter your personal information, including your name, Social Security number, and account number to confirm your identity.
Due to the sensitive nature of student loan financial information, we recommend using a strong, unique password for your account—just like you would with your online bank.
Once your account is set up and you’ve logged into the platform, it’s time to brace yourself. Your loan amounts will automatically be populated in your account and you’ll be able to see exactly how much you owe.
Take a deep breath, you’ll get through this!
Student Loan Repayment Options with MyFedLoan
Now that you’ve created your account, it’s time to figure out which type of repayment plans work best for you. MyFed Loan offers two standard loan repayment options, which are as follows:
- Standard repayment. This plan offers the quickest path to pay off your student loans with a 10-year term for unconsolidated loans and a 30-year term for consolidated loans.
- Graduated repayment. This plan offers a 10-year repayment term and starts out with lower monthly premiums that increase every two years. Initially, your lower monthly payments cover interest only.
The idea behind the graduated repayment plan is that your earnings will increase over time. This plan might be ideal for recent grads who are super tight on cash.
The downside, however, is that making lower payments up front means you’ll wind up paying more in interest over the course of your loan. As such, we recommend avoiding this route whenever possible.
For tips on how to pay off your student loans faster, check this out.
MyFedLoan Alternative Loan Repayment Options
If you’re having difficulty coming up with the cash to make your loan payments, MyFedLoan offers several extended repayment plans that accommodate most situations, including:
- Pay-As-You-Earn (PAYE). This plan that factors in your income and family size to determine a monthly payment amount around 10% of your discretionary income. After 20 years of qualified payments, loan forgiveness is granted.
- Income-based repayment. This plan requires payments of around 15% of your discretionary income for a term of 20 or 25 years after which time your loan will be forgiven.
- Income-sensitive repayment. This is a short-term plan that allows you to make lower monthly payments for up to five years in the event you are unable to make required monthly payments. The monthly premium amount is based on your income and payments must always cover accruing interest. If you opt for this route, you’re looking at a maximum loan term of 15 years. (Note: This plan is only available on loans distributed through the Family Federal Education Loan program.)
- Income-contingent repayment. This plan requires monthly payments of either 20% of your monthly discretionary income or the amount you would pay under a 12-year fixed term, whichever is lower. After 25 years of qualified loan payments, your loan will be forgiven.
- Extended fixed repayment. This plan extends the term of your fixed loan from 10 years to 25 years. Your monthly payments will be lower but you’ll pay more interest over the course of your loan. (Note: You must have over $30,000 in outstanding Direct Loans or FFEL Program loans in order to qualify for this plan.)
- Extended graduated repayment. This plan extends the term of your graduated repayment plan for up to 25 years. Similar to the standard graduated repayment plan, monthly premiums are lower in the beginning and increase over the course of your loan term. (Note: You must have over $30,000 in outstanding direct loans or FFEL program loans in order to qualify for this plan.)
- Revised-Pay-As-You-Earn (REPAYE). This extended repayment plan is similar to PAYE except that your monthly premium is influenced by your spouse’s income (if applicable). The loan term is 20 years for traditional undergraduate programs and up to 25 years for graduate and professional studies. Loan forgiveness is offered after 20 years for traditional undergraduate degrees and 25 years for graduate and professional degrees.
What We Like About MyFedLoan
One of the main features we like about MyFed Loan is the wide range of repayment options, as described above.
Since you never know what types of financial setbacks you’ll experience in life—for example, getting fired from your job or having to shell out thousands of dollars for an emergency medical expense—many borrowers will find it reassuring that they can avoid delinquency by simply reducing their monthly premiums.
The MyFedLoan platform is also pretty straightforward to use, which doesn’t hurt.
- Wide range of repayment options
- Easy to use platform
Negative Reviews about MyFedLoan
Since you’re reading this article, you’ve probably also glanced at the hundreds of negative online reviews about MyFedLoan. A quick Google search will indicate that MyFedLoan has received hundreds 1-star reviews in the past and that the company used to have an ‘F’ rating from the Better Business Bureau. This Consumer Affairs website also indicates similar customer dissatisfaction.
Some of the most common complaints include that MyFedLoan doesn’t process payments correctly, it’s difficult to apply payments to a single loan, and it’s hard to make extra payments. What’s more, some borrowers have reported that these errors result in additional interest charges on their account while others have experienced a lower credit score as a result of a “poor standing” label being incorrectly applied to their loan.
If you’re simply fed up with MyFedLoan or want to look for alternative refinancing options, you may want to read this post to learn more about refinancing student loans.
MyFedLoan Most Common FAQs
Q: How do I make a loan payment?
A: There are several ways to make payments to your MyFedLoan account, including: linking your bank account for direct debit (recommended); making a payment over the phone by calling 1-800-699-2908; mailing in a check; making a one-time payment on their website; or making a payment on the app.
Q: Can I change my loan due date?
A: Yes, you can change your loan date if your payment isn’t already due. In order to change your due date you must also:
- Be in active repayment
- Make your first scheduled payment on time
- Be current on your monthly payments
- Request a date between the 1st and 28th of the month
It may take up to two billing cycles for your new due date to take effect. Depending on when the request is made and when your payment is due, the request may also result in two payments being due within one 30-day billing cycle.
Q: What are my options if I can’t afford my loan payment?
A: As soon as you think you might not be able to make your payment on time, we recommend contacting MyFed Loan and discussing your options. As with any complicated financial situation, the more proactive you are, the more time you’ll have to ensure the best financial outcome for your situation. With that said, your options are as follows:
- Adjusting your due date (as mentioned above)
- Changing your payment plan (e.g., to an extended repayment plan that carries a lower monthly premium)
- Postponing the payment through a deferment or forbearance which can be done via the “Trouble Paying” option in your account
Q: Why am I getting a bill while I’m still in school?
A: If you’re back in school and receive a bill for loan that you’ve taken out from your previous school, it might be because it typically takes a few weeks for MyFedLoan to update your enrollment status with your new school. In this situation, you can either make the payment (which we recommend, if possible) or request a General Forbearance under the “Trouble Paying” section in your account. Once your status is updated, you’ll stop receiving bills while enrolled in school.
Q: How do I contact MyFed Loan?
For general inquiries, call 1-800-699-2908 between 8 a.m. and 9 p.m. Eastern Time, Monday through Friday.
Their mailing address is:
Department of Education
P.O. Box 790234
St. Louis, MO 63179-0234
Letters and correspondence should be sent to:
P.O. Box 69184
Harrisburg, PA 17106-9184
Credit disputes should be sent to:
FedLoan Servicing Credit
P.O. Box 60610
Harrisburg, PA 17106-0610
Consolidation related letters and correspondence should be sent to:
FedLoan Consolidation Department
P.O. Box 69186
Harrisburg, PA 17106-9186
For complaints, contact the Office of Consumer Advocacy at:
Pennsylvania Higher Education Assistance Agency
The Office of Consumer Advocacy
1200 North 7th Street
Harrisburg, PA 17102
Visit this page to view their full contact information.
Final Opinion About MyFedLoan
There’s never going to be perfect government operated student loan processing system.
This is why we recommend getting out of debt as fast as possible and even avoiding taking out loans in the first place if you can. For more on that, check out this money management post that goes into detail about maximizing your earnings, starting a side hustle, and getting out of debt altogether.
While there’s no pretty side to student loans, the MyFedLoan platform is straightforward to use. If you’re paying off your loans responsibly and being proactive with regards to adjustments that need to be made, don’t worry—your loans will be paid off before you know it. Once you get to that point, you can really start building a secure financial future. Good luck!