Skip to content

FAQ: Can a school choose their borrowers’ servicer?

May 3, 2010

As I travel across the nation giving presentations at conferences, I am often asked if a school can determine who will be the servicer for their students’ loans.  Here’s an FSA approved question/answer  to this.  

Is ED considering allowing schools to choose who will service their students’ FFEL loans that are sold to ED or assigned as part of the Direct Lending contract?  

Nelnet is not aware of any actions that ED is considering that would allow this capability. However, schools will be able to provide feedback to ED regarding their experience with the servicers.ED will allocate volume among the four additional servicers for Direct Loans based on the performance scores each servicer receives. These performance scores are based on five metrics:


1. Borrower Survey 


2. School Survey  

3. FSA Survey  

4. Percentage of “in repayment” dollars that go into default  

5. Percentage of unique “in repayment” borrowers that go into default  

If you have any additional questions, please let us know.  





No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: