What Is the Best Student Loan Servicer? Our 2025 Analysis Based on Customer Complaints

According to recent data from the Education Data Initiative, nearly a third of undergraduate students accept federal loans to help fund their college education. That’s more than 6.5 million students every year who rely on loans from the federal government.

But those loans aren’t all managed by Uncle Sam directly. Instead, the U.S. works with a handful of student loan servicers, which provide billing and additional services. However, most of these loan servicers are known for poor customer service, and there’s little you can do to change who services your student loans.

Below, we’ll review the best student loan servicers and talk through the rare scenarios in which you might be able to switch.

Table of Contents

1. What do student loan servicers do?
2. Student loan servicers ranked
   1. 1. Aidvantage
   2. 2. Nelnet
   3. 3. EdFinancial
   4. 4. MOHELA
   5. 5. Central Research Inc. (CRI)
3. Can I change my student loan servicer?
4. FAQ

What do student loan servicers do?

Student loan servicers manage the day-to-day needs of federal student loans on behalf of the Department of Education (ED). They provide billing and help students navigate federal loan options, such as income-driven repayments and loan forgiveness programs.

When you take out a Direct Subsidized or Unsubsidized Loan to pay for your undergraduate degree, the ED will assign you to one of five student loan servicers. You won’t get a say in which servicer you’re assigned to.

You’ll create an account with that student loan servicer, and that’s how you’ll manage your loan until it’s paid off, forgiven, transferred, consolidated, or privately refinanced.

Student loan servicers ranked

We analyzed the five current student loan servicers based on their customer satisfaction ratings. The student loan servicer with the fewest complaints—and trust me, there are still many complaints for the best—landed in the top spot.

1. Aidvantage
2. Nelnet
3. EdFinancial
4. Missouri Higher Education Loan Authority (MOHELA)
5. Central Research Inc.

About the student loan servicers

In 2023, the ED awarded five companies with contracts to service federal student loans:

1. MOHELA
2. Maximum Education, which operates as Aidvantage
3. EdFinancial Services
4. Nelnet
5. Central Research Inc. (CRI)

The first four simply had contracts extended. CRI was the only new addition, but it represents only a small portion of federal student loans. Here’s a closer look at each of them.

1. Aidvantage

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Aidvantage is a division of Maximus Federal Services, which also oversees defaulted student loans (more on that below). Aidvantage is a relative newcomer, replacing Navient as a student loan servicer in late 2021.

The Better Business Bureau does not accredit Aidvantage, but it maintains a B-minus rating; parent company Maximus has an F rating.

According to a report by the Consumer Financial Protection Bureau (CFPB), Aidvantage has the smallest share of borrower complaints relative to the volume of federal loans it services.

It has less than one complaint for every two borrowers. That doesn’t sound great, but the bar is super low for student loan servicers.

Share of accounts	25%
Share of complaints	12%

2. Nelnet

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Nelnet has been in the game much longer and services more than a third of undergraduate student loan debt in the United States. In 2018, the company acquired Great Lakes Educational Loan Services, expanding its position in the industry.

Unlike Aidvantage, Nelnet is accredited by the BBB and has an A-plus rating. But customers are critical on the review site Trustpilot, where the company currently has 1.5 stars based on 35 reviews.

The gap between Nelnet’s share of accounts and complaints is also larger than Aidvantage’s, meaning Nelnet has more complaints per borrower, on average. Still, it’s impressive that Nelnet holds almost two in every five undergraduate federal loans yet only receives roughly one in every five complaints about student loans.

Share of accounts	38%
Share of complaints	22%

3. EdFinancial

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EdFinancial is a smaller federal student loan servicer than both Aidvantage and Nelnet, and it’s garnered less commentary on customer review sites like Trustpilot.

That said, data from the CFPB paints a clear picture. It’s almost a one-to-one ratio between its share of accounts and the share of complaints. That essentially means everyone who has a loan serviced by EdFinancial is dissatisfied with the service.

Share of accounts	18%
Share of complaints	13%

4. MOHELA

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MOHELA was the most recent student loan servicer to oversee federal loans for borrowers in the Public Service Loan Forgiveness (PSLF) program. Needless to say, it did not go over well. MOHELA garnered a wide range of complaints about its management of the program and was clearly not equipped to handle it.

In 2024, the Department of Education transitioned the program out of MOHELA’s hands and under the government’s purview. Now, any of the major loan servicers can manage a loan whose borrower is working toward loan forgiveness; the ED will simply oversee the program.

But the damage to MOHELA’s reputation was done. MOHELA is not accredited by the BBB and has a B-minus rating. On Trustpilot, MOHELA has 1.3 stars based on more than 80 reviews.

The most condemning evidence, however, comes from its share of complaints relative to its share of accounts. According to the CFPB, MOHELA has more than two complaints for every one borrower.

Share of accounts	20%
Share of complaints	41%

5. Central Research Inc. (CRI)

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CRI is the newest student loan servicer on the list, maintaining a minuscule percentage of overall student loan accounts. Thus, there is not yet enough customer complaint data to rank CRI as a student loan servicer appropriately.

Though not accredited by the Better Business Bureau, the servicer currently has an A-plus rating. But give it time.

A note on other student loan servicers

Some graduates still paying on student loans may have their loans serviced through ECSI, which services remaining Perkins loans (discontinued in 2017). ECSI also services other student loans, including health professions loans. If you’re just now taking out Direct Loans, you won’t be assigned to ECSI.

Finally, if you stop making payments and default, your student loans may be transferred to a seventh servicer, Default Resolution Group.

Can I change my student loan servicer?

For the most part, you’re stuck with the student loan servicer the Department of Education assigned you to. But there are two key scenarios in which you might be able to switch.

Here’s how to change your student loan servicer, either through consolidation or refinancing:

Federal student loan consolidation

The main way to change student loan servicers is by consolidating your federal loans. Consolidating several federal loans into one single loan could:

• Simplify your monthly payment process
• Extend how long you have to repay your loan
• Lock in a new interest rate
• Give you access to income-driven repayment plans (for non-Direct loans)

There are many reasons to consolidate your loan, but if your sole purpose is to switch student loan servicers, you should reconsider. The grass always seems greener, but by and large, all student loan servicers operate similarly and share the same kinds of complaints, including:

• Incorrect billing
• Incorrect payment tracking
• Poor customer service

Weigh the pros and cons of student loan consolidation carefully before moving forward.

Student loan refinancing

Another way to switch student loan servicers is to ditch your federal student loans altogether. That means refinancing with a private student loan lender.

Now, you should exercise even more caution when going down this path. While refinancing student loans can serve a number of goals—such as lower monthly payments or lower interest—switching to a private lender eliminates some of the benefits you enjoy with federal student loans, such as temporary loan payment relief and access to federal loan forgiveness programs.

Consider all the pros and cons of student loan refinancing before moving forward.

If a private loan still feels like the right option, do your research before refinancing. Not all private lenders work the same. Review our roundup of the best private student loans and prioritize a lender that meets your needs. For instance:

• College Ave offers a program called Multi-Year Peace of Mind that increases your approval odds when you need additional loan funds down the road.
• Sallie Mae has an option for cosigner release after just 12 on-time, consecutive payments.
• Earnest lets you skip one payment a year without any impact on your credit; for instance, if you need more cash around the holidays, you could skip your December payment with no credit consequences.

If my clients are considering refinancing to a private lender, I ensure they understand the federal benefits they would forgo, such as flexible repayment plans and potential loan forgiveness. They may ultimately decide these benefits are too valuable to give up.

If they still wish to change servicers, I recommend first exploring options to switch within the federal system. However, if they have a strong financial profile and stable income and do not anticipate needing federal protections, I suggest considering refinancing—provided they secure more favorable terms.

Other reasons your student loan servicer can change

There are technically other ways you can change student loan servicers, but neither is an ideal scenario:

• Department of Education-led transfer: Theoretically, the ED can transfer your loan to another servicer at any point, like when a contract ends. However, this is completely out of your control—and can be an administrative nightmare for you, in the interim.
• Total and Permanent Disability discharge: If you become “totally and permanently disabled,” as the ED defines it, you may qualify to have your federal loans discharged.

Recent changes to Public Service Loan Forgiveness program

Previously, you could also change student loan servicers by entering the Public Service Loan Forgiveness (PSLF) program. MOHELA serviced all loans for borrowers enrolled in PSLF; if your loan wasn’t with MOHELA, it would be transferred once you enrolled in the program.

However, in 2024, the Department of Education brought management of the loan forgiveness program in-house. Theoretically, any of the contracted servicers can now manage loans for borrowers seeking loan forgiveness.

FAQ

Do private student loans have servicers?

Yes, private student loans also have servicers, but unlike federal loans, your lender usually chooses the servicer. Some private lenders handle servicing in-house, while others contract third-party servicers to manage payments and customer support. If you refinance your student loans with a private lender, your servicer will change to the one your new lender uses.

What happens if my student loan servicer changes?

If the Department of Education transfers your federal student loans to a new servicer, you will receive notices from both your old and new servicer. Your repayment plan, loan terms, and forgiveness eligibility will remain the same, but you’ll need to create an account with your new servicer to manage payments. It’s also a good idea to download records of your payment history in case of errors during the transfer.

Can I switch back to my original servicer after consolidating or refinancing?

No, once you consolidate your federal loans, they are permanently assigned to the new servicer handling your Direct Consolidation Loan. Refinancing with a private lender means you cannot switch back to your previous federal servicer because your loan is no longer part of the federal system. If you refinance with another private lender in the future, you may be assigned a different servicer.

Does my student loan servicer determine my interest rate?

No, your student loan servicer does not set your interest rate. For federal loans, interest rates are determined by Congress and remain the same regardless of servicer. For private loans, the lender sets the rate based on credit score, loan type, market conditions, and other factors. Your servicer only manages payments and customer service.

What happens to my student loan servicer if I go into default?

If you default on your federal student loans, they may be transferred to the Default Resolution Group (DRG) or a collections agency. At this point, your original servicer no longer manages the loan, and you’ll need to work with the assigned entity to rehabilitate your loan or explore repayment options. For private loans, defaulted accounts are typically sent to collections or charged off by the lender.