The student loan manager who manages and collects your student loan payments may change.

A loan manager acts as an intermediary between you and your mortgage lender, the company that granted your loan. If you have federal student loans, the US Department of Education (DOE) has assigned your loan manager (you can find out who your manager is by visiting My federal student aid). If you have private loans, your private lender has selected your loan manager.

So what happens when another company takes over your loan repayments? Here is what you need to know.

Why did another company start to manage my loans?

There are a number of reasons your student loan manager may change hands. One of the most common, if you have private loans, is that your lender has sold your debt to another lender, who then assigned a new service agent to collect the payments on their behalf. If this happens, your original mortgage lender should notify you that you have a new loan service, usually by email and regular mail within 15 days of the transition.

Moreover, if you consolidate your federal student loans – a process where you combine your existing loans into one direct loan – your loan manager might change. Likewise, if you are refinancing private student loans, you will have the option of transferring them to another lender, who can then assign a new loan manager. By refinancing, you will receive a new interest rate, which can help you reduce your loan payments and establish a new repayment schedule.

Are you unhappy with your loan manager? Your first course of action is to contact your lender and let the business know about the problem, such as a disagreement on your loan balance. Be prepared to provide relevant records and documents, such as invoices and balance statements, to make your case for a new loan manager.

HOW TO PREVENT STUDENT LOANS FROM TAKING YOUR IMPT REPAYMENT

Another avenue you can take is to file a formal complaint against your loan manager with the Consumer Financial Protection Bureau (CFPB), the federal regulator that oversees the student loan department and the loan market. From 2012 to 2017, the CFPB handled over 50,000 student loan complaints related to issues such as service outages, obstacles to debt collection and “debt relief” scams. You can file a complaint online or call (855) 411-CFPB (2372).

What is the difference between a loan manager, a loan holder and a debt collector?

Your the loan manager is in charge of collecting payments and otherwise manage your loans. In contrast, a loan holder is a company that owns your student loan debt. In some cases, your loan manager and your loan holder are the same company, but they are usually separate companies.

A debt collector is a third entity that you should know about. If you are in arrears with your payments, your lender can transfer your debt to a collection agency, which then collects the money you owe on your loans.

HOW STUDENT LOANS MAY AFFECT YOUR CREDIT RATING

Pro tip: if you have late on your student loan payments, you might consider consulting with a credit counselor, a financial professional who can help you make a plan to pay off your loans and avoid missing payments in the future. To find a reputable credit counselor, you can try the Financial Counseling Association of America or the National Foundation for Credit Counseling.

Keep track of your loan payments during the transition

Most maintenance agent changes go smoothly, but problems can arise. For example, you may have set up automatic withdrawals with your old server that were not transferred to your new server; if this happens, you could be responsible for any late or missed payments.

Therefore, it is wise to keep control of your loan repayments when your agent changes to make sure nothing goes through the cracks. Additionally, you’ll want to contact your old service agent to receive documents that say you made payments on time, providing you with evidence you can present if your new service agent claims you missed a payment.