Ranking the Best Student Loan Servicers in 2025

Although federal student loan borrowers have little control over who manages their debt, as the U.S. Department of Education assigns loan servicers, it’s beneficial to be aware of the major players to understand what to expect.

As of 2024, and with the exit of Navient, Great Lakes, and FedLoan Servicing (among others), the department has contracted with five companies to service student loans under USDS: Nelnet, Aidvantage (under Maximus Education), MOHELA, EdFinancial, and Central Research, Inc. 

Identifying the ‘best student loan servicer’ is challenging because borrower experiences differ greatly, and satisfaction levels are generally low.

Therefore, this guide does not aim to declare one ‘best’ servicer but instead helps you understand the strengths and weaknesses of each.

Student Loan Servicers Overview

5 Best Student Loan Servicers in 2024

Here is a list of the five companies currently servicing student loans under USDS.

1. Nelnet

Founded in 1996, Nelnet is a major federal student loan servicer for the U.S. Department of Education, managing both direct student loans and some of the few FFEL loans. 

After acquiring Great Lakes Educational Loan Services in 2018, the company significantly expanded its market presence, becoming one of the largest loan servicers nationwide. 

As of September of 2024, the company was servicing over $526 billion in government-owned, FFELP, consumer loans, and private education for 15.5 million borrowers. 

As a servicer, Nelnet doesn’t originate loans or determine eligibility. They mainly help borrowers with loan repayment. By default, Nelnet will place you on a standard 10-year repayment plan, but you’re not locked. It’s possible to change your repayment plan multiple times throughout your loan term. 

One unique aspect of Nelnet is its role in handling Disability Discharge for totally and permanently disabled borrowers. However, the company isn’t without its challenges, as there are countless reports of poor customer service, communication issues, and occasional errors in payment calculations and processing. 

Key Highlights

• One of the largest federal student loan servicers in the U.S., with almost 30 years of experience.
• Specializes in servicing federal student aid loans, including direct loans and some Federal Family Education Loans (FFEL). 
• They manage applications for loan discharges, such as those for total and permanent disability. 

Contact Information

• Phone: 1-888-486-4722 
• Correspondence Address: P.O. Box 82561, Lincoln, NE 6851-2591 or, for California residents, P.O. Box 82578, Lincoln, NE 68501-2578
• Payment Address: U.S. Department of Education, P.O. Box 2837, Portland, OR 97208-2837
• Hours: Eastern Time, Monday 8 AM – 9 PM, Tuesday and Wednesday 8 AM – 8 PM, and Thursday and Friday 8 AM – 6 PM.

2. Aidvantage

Aidvantage, a subsidiary of Maximus Education, took over loans previously managed by Navient in December 2021. This transition came after Navient exited the federal student loan servicing space. As of 2024, Aidvantage services $291 billion in student loans for over 8.4 million borrowers. 

Initially, Aidvantage’s website mirrored content from StudentAid.gov, offering little to no unique value. However, recent updates have made the platform more user-friendly with improved accessibility and navigation. 

Even with these improvements, Aidvantage’s service quality is inconsistent for some borrowers, a common issue among most servicers. Their customer service isn’t anything to write home about, and many are complaining about how unhelpful they are regarding forgiveness programs. 

Additionally, Aidvantage has inherited skepticism from borrowers because of Navient’s past controversies. However, the company has received relatively positive ratings compared to its predecessor in recent surveys. 

Key Highlights

• Aidvantage is the federal loan servicing unit of Maximus Education and has taken over Navient’s servicing in 2021.
• Offers multiple repayment plans, including standard and graduated payment plans, as well as IDR options. 
• Facilitates requests for programs like PSLF and Disability Discharge by transferring loans to appropriate servicers (e.g., MOHELA or Nelnet). 

Contact Information

• Phone: 1-800-722-1300
• Correspondence Address: P.O. Box 300001, Greenville, TX 75403-3001
• Payment Address: P.O. Box 4450, Portland, OR 97208-4450
• Hours: Eastern Time, Monday 8 AM – 9 PM, Tuesday and Wednesday 8 AM – 8 PM, and Thursday and Friday 8 AM  – 6 PM

3. MOHELA

The Missouri Higher Education Loan Authority (MOHELA) is another major federal loan servicer with a substantial portfolio of federal loans. From July 2022 to April 2024, MOHELA served as the interim Public Service Loan Forgiveness (PSLF) servicer and processed nearly $55 billion for 737,00 individual borrowers. 

However, the organization has faced scrutiny due to operational challenges, including delays in processing applications and a high volume of customer service inquiries during peak periods. We have an entire article covering MOHELA’s latest backlash, so be sure to check it out. 

Despite these issues, MOHELA remains dedicated to improving its services and has invested in additional staffing and customer service tools to improve borrower experiences. While many borrowers appreciate the company’s commitment to PSLF, others have expressed concerns about long wait times and communication difficulties. 

As MOHELA transitions away from managing PSLF applications, borrowers must stay informed about changes and ensure they understand their repayment options moving forward. 

Key Highlights

• Established in 1981, MOHELA has over 40 years of experience in the student loan servicing industry. 
• A variety of repayment options, including income-driven repayment plans like SAVE, PAYE, IBR, and ICR. 
• Was once the interim PSLF servicer, processing the largest amount of forgiveness from 2022 to 2024.

Contact Information

• Phone: 1-888-866-4352 
• Correspondence Address: 633 Spirit Drive, Chesterfield, MO 63005-1243
• Payment Address: You must log in or call for your payment address
• Hours: Eastern Time, Monday: 8 AM – 9 PM, Tuesday and Wednesday: 8 AM – 8 PM, and Thursday and Friday: 8 AM – 6 PM ET

4. EdFinancial

EdFinancial prides itself on its borrower engagement strategies and commitment to preventing defaults. The company has nearly 30 years of experience and is servicing more than 68 million borrowers nationwide—the exact amount of student loan debt they manage isn’t clear. 

EdFinancial is obviously a reputable student loan servicer. After all, they have a B+ rating with the Better Business Bureau (BBB). However, they don’t serve the volume of student loans that other federal loan servicers like Nelnet and Aidvantage do. 

As a mid-level servicer, they often fall short of expectations. A quick Google search will show you just how many complaints they’ve received regarding incorrect monthly bills and lack of communication. 

Key Highlights

• Various repayment plans, including standard, graduated, and income-driven repayment options. 
• Recently awarded a new contract by the U.S. Department of Education to manage federal student loans in 2024. 
• Can provide information on loan forgiveness programs, but they don’t necessarily execute them. 

Contact Information

• Phone: 1-855-337-6884
• Correspondence Address: P.O. Box 36008, Knoxville, TN 37930-6008
• Payment Address: US Department of Education, P.O.Box 790322, St. Louis, MO 63179-0322
• Hours: Eastern time, Monday: 8 AM – 9 PM, Tuesday and Wednesday: 8 AM – 8 PM, and Thursday and Friday: 8 AM – 6 PM ET

5. Central Research, Inc

Last on our list is Central Research, Inc, a newcomer to the federal loan servicing space. There’s no specific information available regarding how much debt the company manages or how many borrowers it serves, but it’s safe to assume it’s less than the above-listed four.

The veteran-owned company previously worked with the U.S. Department of Education as a client in the past, with a contract to help student borrowers with loan rehabilitation. It wasn’t until April 2023 that the company was given another contract under the Biden Administration for federal loan servicing. 

Few reviews are available about the company’s performance. The very few we’ve found were mostly positive. However, it’s too soon to judge their customer service quality compared to other servicers on this list, although we hope it is better.

Key Highlights

• One of the newest and smallest federal student loan servicers, having been awarded a servicing contract in April 2023. 
• The company is veteran-owned and has grown into a multi-million dollar business specializing in government contracts. 
• Specific details about loan types managed by CRI are limited due to its recent establishment as a servicer. 

Contact Information

• Phone: 833-355-4311
• Correspondence Address: P.O. Box 83106, Lincoln, NE 68501
• Payment Address: U.S. Department of Education, P.O. Box 790123, St. Louis, MO 63179-0123
• Hours: Eastern time, Monday: 8 AM – 9 PM, Tuesday and Wednesday: 8 AM – 8 PM, and Thursday and Friday: 8 AM – 6 PM ET

The Role of Student Loan Servicers

A student loan servicer is a third-party company that manages the day-to-day administration of your loan after it has been disbursed. They act as an intermediary between you and your lender. 

Some of the administrative tasks that servicers handle:

• Send out monthly billing statements and process your payments
• Address questions about your loan, payment status, and any issues that may arise
• Assist with changes to repayment plans, deferments, or forbearances
• Guide through options like rehabilitation or consolidation if you’re in default

Servicers vs. Lenders: Key Differences

The surface-level difference between student loan servicers and lenders is that the latter provides the money and sets the terms of the loan while the former manages the loan after funding. That being said, there are a few other not-so-obvious differences:

Borrower Interaction

You typically interact with your lender during the application process and when you first take out the loan. That’s about it. With a servicer, however, you’ll have ongoing interactions throughout the life of your loan since they’ll be handling payments and taking care of potential issues. 

Choice

You can choose which lender to borrow from when taking out a private student loan—federal loans are issued by the government. The same cannot be said about servicers. 

Servicers are assigned based on your lender’s arrangements. If you have a federal loan, you may see changes in servicers over time due to contract renewals or other administrative decisions. 

Loan Management

The lender is only responsible for underwriting and funding the loan. Maintaining records, processing payments, and providing support through repayment is for the servicer to do. 

Practical Tips for Borrowers

The following tips can help you manage your student debt more effectively:

• Keep Tabs on Your Servicer: If you’re unsure who your servicer is, you can find this information by logging into your account on the National Student Loan Data System or checking your loan documents. 
• Stay Organized: Keep track of all communications with your servicer, including emails, phone calls, and payment confirmations. This documentation will be invaluable if you run into any problems. 
• Explore Repayment Options: Take time to understand all available repayment plans. Income-driven repayment (IDR) plans, in particular, can lower your monthly payments based on your income level. 
• Consider Loan Rehabilitation: If you’re facing default on your loans, you should inquire about rehabilitation programs offered by your servicer or through the Default Resolution Group. 
• Reach Out: If you encounter any problems or have questions about your loan, don’t hesitate to contact your servicer directly. Wait times will probably be long, especially during peak times, but be patient. 

Get Personalized Support

We understand that dealing with student loans can be stressful. Between different services, complicated repayment plans, and endless paperwork, it’s enough to make your head spin. 

But keep in mind that you’re not the only one going through this. Every borrower faces similar challenges, and knowing how the different servicers operate can make a huge difference. 

For consultations and personalized support, contact Student Loan Professor today ,and we’ll connect you to one of our student loan advisors. 

Brandon Barfield

Brandon Barfield is the President and Co-Founder of Student Loan Professor, and is nationally known as student loan expert for graduate health professions. Since 2011, Brandon has given hundreds of loan repayment presentations for schools, hospitals, and medical conferences across the country. With his diverse background in financial aid, financial planning and student loan advisory, Brandon has a broad understanding of the intricacies surrounding student loans, loan repayment strategies, and how they should be considered when graduates make other financial decisions.