Key Players in the Loan Process

Knowing who's who in the loan process will help you keep in touch with the right people as you work to repay your student loan. Good communication is the key to successful loan repayment and a great credit reputation. Here are the key players you may need to contact:

Financial Aid Administrator
The financial aid administrator at the school you're planning to attend will help you determine which loans you're eligible for. This is your best source for information about your loan and other potential financial aid.

Federal Government
The government offers the Federal Direct Loan Program, and the funds are made directly through the Federal Government. As such, loan terms, interest rates, eligibility factors, repayment criteria and other requirements are established by the federal government and overseen by U.S. Department of Education. Direct loans are either unsubsidized (interest is charged beginning the day the loan is disbursed) or subsidized (the government pays for interest accrued up through graduation day, during the grace period, and during any periods of deferment).

Servicer
The servicer is hired by the lender or secondary market to mange the day-to-day details of tracking and collecting loan payments. So, while your loan may still be owned by the federal government, a servicer processes payments, tracks address changes, deferments, billing, and so on. It's important to know your servicer!

Credit Bureau
A credit bureau maintains a credit history on anyone who has ever borrowed money. As such, your student loan record becomes part of your permanent credit history - good or bad. When you consider borrowing for a future purchase like a home or a car, the seller will likely request a credit report from a national credit bureau.