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2013 4.9 Satisfied (61 Votes)
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Loan servicing is the process of collecting payments on a loan and passing along distributions to the parties involved. The servicer collections a portion of each payment as payment for servicing the loan.
Loan Servicing Example For example, if the monthly mortgage payments are $2,000 and the servicing fee is 0.25%, the servicer is entitled to retain $5or (0.0025 x 2,000)of each payment before passing the remaining amount to the note holder.
To find out who your loan servicer is, visit your account dashboard and scroll down to the My Loan Servicers section, or. call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
Servicers are responsible for assisting borrowers with tasks such as making payments, choosing a repayment plan, and monitoring the status of their loan. Servicers do not typically own loans or profit directly from the interest paid.
5 Best Student Loan Servicers in 2024 Nelnet. Founded in 1996, Nelnet is a major federal student loan servicer for the U.S. Department of Education, managing both direct student loans and some of the few FFEL loans. Aidvantage. MOHELA. EdFinancial. Central Research, Inc.
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Your mortgage lender is the financial institution that originally loaned you the money. Your mortgage servicer is the company that sends you your mortgage statements and handles the day-to-day tasks for managing your loan.

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