What Is a Student Loan Servicer?
A student loan servicer is the company responsible for managing a borrower's loan account after funds have been disbursed. The servicer collects payments, processes applications for repayment plans, communicates with borrowers, and reports to credit bureaus. The servicer works on behalf of the lender — it does not own the loans it manages.
Why it matters in servicing
As a servicer employee, your day-to-day work is the servicing function. Understanding the distinction between lender (who owns the loan) and servicer (who manages it) is the foundation of everything you do.