What is FedLoan – All About Student Federal Loan

One of the heaviest burdens on the university student is the economic one. The university installment, the cost of books and life often away from home, the lack of personal income, imposes economic sacrifices on the student and generally on his entire family, in many cases the students have to drop their studies. What to do in this case? Despite some circulated alarms on the use of educational loans, provided by banks, they remain one of the solutions that allow a young person to attend university

If you are studying but not having enough funds to do it. This is the problem faced by a young guy who cannot get one of the scholarships or for which none of them manages to be decisive. A rather common scenario that can be solved by applying for a student loan.

Every year, millions of Americans sign up to take higher education courses from post-secondary education institutions. However, most do not have the funds to pay for their education in cash and must therefore take out one or more loans to cover the cost of tuition and other fees. As a result, student loans have grown to a multi-billion dollar industry that helps students of all economic backgrounds to pay for higher education and vocational training.

Types of student loans

There are basically two types of student loans as below:

Types of private student loans

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Perkins loans
  • PLUS loans

Private loans are the loans which are managed and issued by private companies like banks, state based organizations, credit unions etc. The terms and conditions of these private loans are set by the lender. The expenses and the interest rates of private loans are also much more than the Federal loans.

Types of Federal Student Loans

  • Bar exam loans
  • International student loans
  • Medical school loans
  • Student loans for bad credit
  • Student loans without a co-signer
  • State loans
  • Credit union loans

On the other hands Federal student loans are managed and issued by the government. There are lots of benefits of Federal loans as compared to Private loans. Some of these benefits are they have fixed interest rates. As said earlier, Federal loans are managed by the US Government, the government has assigned nine loan services and one such Student Loan servicer is FedLoan, which we will explain below.

So in other Words at the time of requesting a loan, you have two options to turn to. One is a public body ie. the Federal Department of Education, and the second option is private institution such as a bank or other financial entity. Avoid loans from financial or short-term lenders. The interest charged by these companies is high, and the penalties for late payments can keep you in debt more than expected. On the other hand, the federal government is the most convenient, as it offers varied alternatives of payment plans, debt forgiveness benefits and loan consolidation and rehabilitation programs, which are covered by federal legislation.

Various types of Federal loans which are issued by US Government are:

Direct loans

  • The William T. Ford direct loan program is the largest loan program offered directly by the US government. The three main types of loans listed here fall within the jurisdiction of this program if they were released after 1 July 2010. In order to qualify for a loan under this program, borrowers must meet the following criteria:
  • Be a US citizen or non-eligible citizen with a valid social security number
  • Have a high school diploma or GED or have completed a qualified home school program
  • Students must be enrolled (and making satisfactory academic progress) at least half time in a program that awards a diploma or certificate.
  • Borrowers aged between 18 and 25 must be registered with the Selective Service
  • It cannot be in default on a direct loan that is currently pending
  • Potential borrowers with criminal convictions for drug or s*xual offenses may face additional restrictions, even if otherwise suitable

Three major Direct Loans types offers by US Government are:

  • Federal Direct PLUS Loans
  • Subsidized and unsubsidized loans
  • Federal Direct Consolidation Loans

What is FedLoan?

Contracted by the Department of Education of USA, FedLoan is one of the largest student loan servicing company. The Pennsylvania Higher Education Assistance Agency which is the owner of both FedLoan and AES i.e American Education Services, is considered as one of the largest student loan service provider in USA.

It has been reported that FedLoan service has already served $400 billion in 2019 till now and is still continue to provide studen loans. US Governament uses this Federal student loan service for its Public Service loan and it is the only student loan service used by the Government. Every one out of three student Loan servicing in USA is served by FedLoan. So if you are student and have taken Federal Student Loan, then might think that this loan is provided and managed directly by US government, but actually the fact is that Government assigns the task of managing and issuing Federal Student loans to some other company and FedLoan is one such company.

Benefits of FedLoan

FedLoan offers various benefits, some of which are as below:

  • FedLoan offers educations content on its website.
  • This content contains Calculators, videos, Article, FAQs and more.
  • You can also find budgeting and money management tips there.
  • FedLoan alos has a twitter account where you can get regular updates and news for borrowers..

What are the interest rates for federal student loans?

Loan Type Borrower Type Fixed Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans Undergraduate 4.53%
Direct Unsubsidized Loans Graduate or Professional 6.08%
Direct PLUS Loans Parents and Graduate or Professional Students 7.08%

Interest Rates for Direct Loans First Disbursed on or After July 1, 2019, and Before July 1, 2020

FedLoan Customer Service

FedLoan Customer service is available Monday to Friday from 8:00 AM to 9:00 PM ( ET ). They can also be contacted through their email which is available 24/7, but it may take some time to get response via email. The customer care number of FedLoan service center is 1-800-699-2908.

Fedloan Servicing Fax Number

If you’re returning or verifying documentation, etc.

Fedloan Servicing Phone Number and customer service

Call Toll-Free


Monday through Friday 8:00 AM to 9:00 PM (ET).

TEACH Grant support: Monday through Friday 8:00 AM to 9:00 PM (ET).

  717-720-1985 ( International)  Monday through Friday 8:00 AM to 9:00 PM (ET).

Dial 711 Support for hearing and speech-impaired callers, Monday through Friday 8:00 AM to 9:00 PM (ET).

FedLoan Servicing mailing Address

Mailing Addresses
Send payments to Department of Education FedLoan Servicing P.O. Box 790234 St. Louis, MO 63179-0234
Send completed Direct Debit application forms to FedLoan Servicing P.O. Box 3661 Harrisburg, PA 17105-3661
Send letters and correspondence to FedLoan Servicing P.O. Box 69184 Harrisburg, PA 17106-9184
Send Credit Disputes to FedLoan Servicing Credit P.O. Box 60610 Harrisburg, PA 17106-0610
Send Consolidation related letters and correspondence to FedLoan Consolidation Department P.O. Box 69186 Harrisburg, PA 17106-9186
Contact the Office of Consumer Advocacy at Pennsylvania Higher Education Assistance Agency The Office of Consumer Advocacy 1200 North 7th Street Harrisburg, PA 17102