3 Best Student Loan Repayment Servicers

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Student loan debt continues to weigh heavily on millions of Americans who are navigating rising living costs and uncertain financial futures. Fortunately, federal student loan servicers are here to help. These government-approved companies offer free support to borrowers, helping them manage payments, explore repayment plans and even pursue loan forgiveness. But not all servicers are created equal.

As new legislation reshapes the landscape of student loan repayment–most notably the One Big Beautiful Bill Act (OBBBA) and the introduction of the Repayment Assistance Plan (RAP)–choosing the right servicer has never been more important. In this article, we’ll highlight three of the best federal student loan servicers and explain how they can help you stay on top of your loans, avoid costly mistakes and make the most of available repayment options.

Quick Take: Trump Administration vs. Federal Student Loan Repayment Plans

After the passing of the OBBBA, the Institute for College Access and Success (TICAS) is warning against a new repayment plan that the Trump administration is introducing within the next few months. The student loan borrower advocacy organization has a few concerns when it comes to the future of student loan debt and subsequent student loan payments. Here are a few key takeaways:

• The Department of Education has introduced a new repayment plan option, called Repayment Assistance Plan (RAP), to replace older plans that allowed borrowers to repay based on their specific income and eventually gain student loan forgiveness that may no longer be available. RAP was introduced under OBBBA.
• Under the new regulations, three other income-driven repayment (IDR) plans: Income-Contingent Repayment (CIR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE) are being phased out by 2028.
• Though RAP is a new option, student loan borrower advocates warn there could be long-term negative consequences to signing up for the plan, as borrowers who consolidate their student loans through the federal direct loan program will have to choose between RAP and the standard plan, which does not depend on a borrower’s income.
• You should note that with RAP, your monthly payments for each year are determined based on your income, and after a fixed term, you would qualify for student loan forgiveness.
• This differs from other IDR plans because it has higher monthly payments and uses a different formula where the percentage of income that is counted toward your monthly debt collection payment increases for every $10,000 in additional income earned by the borrower, with a cap of $100,000. However, other IDR plans use a fixed repayment formula and factor in inflation.

Here’s a closer look at three of the best federal student loan servicers.

Aidvantage

Aidvantage is here to help you better understand and manage repayment of your federal student loans. It offers various flexible repayment plan options, including Standard, Graduated, Extended and IDR plans like SAVE. This can help you find a plan that matches your financial situation and potentially lowers your monthly payments. It also helps manage loan forgiveness programs such as Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) forgiveness.

Aidvantage provides military benefits, including assistance with the Servicemembers Civil Relief Act (SCRA), Military Service Postponement and the Higher Education Relief Opportunities for Students (HEROS) Act.

Nelnet

Nelnet is a federal student loan servicer designed to simplify the repayment process. It handles your monthly payments, supports you through each stage of your loan and helps you explore options to reduce your monthly burden.

In addition to servicing federal loans, Nelnet also offers private student loans for both undergraduate and graduate students. Loan amounts range from $1,000 to $500,000, depending on your degree and program–making it a flexible option for borrowers with varying financial needs. Compared to other lenders, Nelnet’s rates are competitive, with APRs typically ranging from 3.47% (fixed) to 5.81% (variable).

Borrowers who enroll in automatic debit payments receive a 0.25% interest rate reduction, and payments can be made online or through a mobile app for added convenience. Nelnet also provides support for loan consolidation, forgiveness programs, disability discharge, and bankruptcy-related issues.

MOHELA

MOHELA is a servicer focused on providing personalized repayment solutions to meet the diverse needs of borrowers. Like other servicers, it offers a variety of repayment plans and flexible payment options to help you stay on track.

Like Nelnet, borrowers who sign up for auto-debit payments can receive a 0.25% interest rate reduction, making repayment more affordable. MOHELA also features an information center with educational resources to help borrowers better understand their loans and repayment strategies.

While interest rates vary depending on the type of loan and issuing entity, here are some current estimates to help you plan:

• Direct Subsidized and Unsubsidized Loans (Undergraduate): 6.39% fixed
• Direct Unsubsidized Loans (Graduate/Professional): 7.94% fixed
• Direct PLUS Loans (Parents & Graduate/Professional Students): 8.94% fixed

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