Are you currently paying off your student loans? If so, then the chances are that you have been with the same servicer for a while. The only problem is that this may not be the most cost-effective way to do it. In fact, there are many people who could save thousands of dollars by switching their student loan servicers. This blog post will show you how to switch and explore some of the benefits that come with change!
Why should I switch?
There are many reasons why you might want to switch to a different student loan servicer. The most notable reason is to improve the student loan repayment process for you. If your loan servicer is unable to adjust your payments to keep your loan debt under control, then they will cancel your loan. This is a big deal because your financial situation will significantly affect the overall future financial security of yourself and your family. Another reason to switch to a different student loan servicer is if you are worried about how you will be treated during your transition period. The Sallie Mae and HSBC student loan servicer have both been known to be harsh towards those that have been in debt for an extended period of time.
What should I do before I switch?
Before making a switch, you should contact the servicer you are currently with and find out what their cancellation or termination policy is. This will determine how much of a delay you will face when you finally leave. Furthermore, you should give the servicer a deadline to respond to your inquiries. If you are not satisfied with their response, you should follow up with them. How can I get out of my contract early? In order to get out of your student loan servicer contract early, you need to have the following three things: Your student loan is at least 6 months delinquent, The servicer can’t prove that you would have been delinquent on your account for an extended period of time, and You pay your student loan in full at the beginning of the contract period.
How do I switch?
The first thing you need to do is calculate how much you could save by switching your student loan servicer. Use Mint.com or a similar tool to create a chart of the interest rate you currently pay, the total balance of your loans, and the fees that you pay annually. This information will help you to arrive at the amount of student loan debt you owe. Using the information above, you can calculate how much you could save by switching from your current servicer. For example, if you currently pay interest of 9.2%, you could pay 7.5% with a different servicer, resulting in an extra $250 paid annually. Tips for changing servicers So how do you make this change? Follow the tips below to take full advantage of the switch to a more cost-effective servicer: Check out the default rate.
What steps do I need to take if I switch?
There are a few things you will need to take before you can go through with this. The first thing that you will need to do is contact your loan servicer and ask for a consolidation letter. You can do this by going to their website and clicking on “My Lender”. The consolidation letter that you will receive will explain all of the options that you have and which ones are better than the one that you are currently using. You will also be asked to provide all of your pertinent information about yourself and your loan. You will be asked for proof of income, your address and your loan information. Once you have the letter, you will need to contact your new servicer. Your new servicer will ask you a few questions about your student loan and then set up a payment plan for you.
What are the benefits of switching?
It is not often that we see these types of deals. Switching student loan companies can lead to some incredible saving. Not only are the companies offering great rates, but there are also great fees. The downside is that you have to pay for the switch. This includes all of the marketing, testing, and the transfer process. The good news is that there are a few companies that offer to do all of this for you at no charge! This means that you are not spending anything out of pocket. You can earn as much as $2,500 if you switch your student loan servicer! This can be great news for people who are in need of extra cash. Not only will you not have to pay for the switch, but you will also be saving more money than expected.
Conclusion
If you are on a fixed income and your student loan payments are not saving you any money, then switch to a different student loan servicer now. Your monthly payment could be cut in half, and there could be countless other benefits. If you are currently paying off your student loans and you have not found a better option, then please leave a comment and I will be happy to help you!
