The school—and not the U.S. Department of Education—distributes aid to students. If you are working with a borrower who has questions about how to make a payment on a federal student loan, have the borrower contact his or her loan servicer.
Then, who is the largest provider of student loans?
Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the nation.
Besides, what are the 3 types of student loans?
There are three types of federal student loans:
- Direct Subsidized Loans.
- Direct Unsubsidized Loans.
- Direct PLUS Loans, of which there are two types: Grad PLUS Loans for graduate and professional students, as well as loans that can be issued to a student’s parents, also known as Parent PLUS Loans.
What are 3 types of federal student aid?
Most federal aid is need-based. The three most common types of aid are grants, loans, and work-study funds. Grants are a type of financial aid that does not have to be repaid.
The eight federal student loan servicers
Learn more about each of the federal loan servicers, including what they can do and how to contact.
Federal student loan servicers, such as Nelnet and Navient Corp., are companies that collect payments, respond to customer service inquiries and perform other administrative tasks on behalf of the U.S. Department of Education.
Nelnet is a student loan servicer (like FedLoan Servicing) that was chosen by the U.S. Department of Education (ED) to service federal student loans. We keep borrowers up-to-date with information about their loans and help them manage the loan repayment process.
Can you separate myth from fact? Great Lakes, FedLoan Servicing, Navient, and Nelnet are student loan servicers. They’re the connection between you and the lender. For federal student loans, the interest is determined by the Higher Education Act as enacted and amended by Congress.
Federal Student Aid offers three types of financial aid. Grants: Financial aid that generally doesn’t have to be repaid.
- lower fixed interest rates,
- flexible repayment options, and.
- many benefits that you won’t find elsewhere.
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.