Student loan borrowers may be in for a rough fall. The time to start preparing is now.
Two major events could cause widespread disruption for student loan borrowers in the coming months. First, at least two major student loan servicers — FedLoan Servicing, and Granite State Management & Resources — recently announced that they will be suspending servicing operations for the U.S. Department of Education by the end of the year. This will result in around 10 million student loan borrower accounts being transferred to new loan servicers in the coming months. More student loan servicer upheaval could follow, as other servicers are also nearing the end of their contracts or are operating on extensions.
Second, the current student loan pause on payments and interest is scheduled to expire on September 30….