Student loan holders should receive an email from their current servicer before the transfer. They should also receive a welcome letter from their new provider that includes instructions such as how to log in to their new online account and how to set up automatic payments.
Federal law prohibits a borrower's bank information from being sent from one service provider to another, so borrowers need to re-establish automatic payments when their loans are transferred, Department of Education officials say.
Occasionally there are hiccups in the transfer process and payments are sent to the wrong servicer, so borrowers should monitor their bank accounts for the first month or two to make sure the payments go through, officials say.
They should also follow up with their new service provider to ensure they received the payments, Greene says.
"Don't be afraid to pick up the phone and call."
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