My student loan was transferred to a new servicer several months ago, and I never received notice, neither from the previous or the new servicer, of the assignment of my loan. I thought that Dodd Frank required notification, but perhaps that only applies to mortgages? I'm in Ch13 BK, and I only learned of the assignment after speaking with my previous servicer because my most recent payment was declines due to the account being closed.

I spoke with the new servicer over the phone, and they confirm that they have the account. I requested that they send me written proof of the assignment, which they said they would do. That was a week ago, and still nothing. My guess is that they do not want me to make any payments during the Bk period, so that interest will accrue over the next 5 years. #sofrustrating

  • Are the loans in question private student loans or federal student loans? Sep 17, 2016 at 1:54
  • @AnthonyMcCloskey They would be federal student loans.
    – Jim Fell
    Sep 20, 2016 at 12:57

1 Answer 1


Waiting a week for an answer is really not all that long. Keep in mind, much depends on how long ago they assumed your loan and whether or not the records have caught up to them yet. If the assignment is recent then it may be taking time for the new servicing company to assimilate the record into their own system, during which time it would be difficult, if not impossible, to reply to your information request. Loans are usually transferred in blocks, and there isn't always uniformity on the way the information is stored in records, so the new servicing company has to figure out how to read the data and load it into their system. (I know this process works because I built such a system for Lehmann Brothers' mortgage servicing division back in the 90s, and it is pretty much the same across all kinds of loan types).

Have you moved since obtaining the loan, and if, so, are you sure the servicing company was aware of the move? It could be that your new servicing company's "welcome" letter was sent to an outdated address.

There are many reasons why you didn't receive notice, but I would suggest being a bit more patient and persistent in your efforts. Stay on top of them to ensure you're affirming the debt and continuing to make payments so the accrued interest doesn't overwhelm you. Not making payments for five years would be disastrous.

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