The US Department of Education is streamlining its roster of companies that work on federal student loans. The plan is to condense 11 servicers into five.<br />The five servicers are EdFinancial Services, F.H. Cann & Associates, Maximus, MOHELA, and Trellis Company.<br />If your loan is already with one of these five institutions, the change in policy should have no impact on your account.<br />If not, Business Insider reports there's a far higher risk of errors in accounts caused by the transition--and ultimately a greater risk of defaults by borrowers.<br />Student loan expert Travis Hornsby says that the companies chosen are also used to servicing defaulted loans.<br />Three of those five companies are collections agencies, and most of their student loan work is in the default space. Travis Hornsby Founder, Student Loan Planner
