Loan Transfer FAQ
CornerStone is working hand-in-hand with the Department of Education to transfer your loans to FedLoan Servicing. Please refer to the following FAQs to answer any questions you may have.
I received an email from FSA stating my loans were being transferred. Why did they contact me?
As a courtesy, FSA wanted to ensure you were aware of the transfer taking place. We will also send you a letter that outlines the specifics of the transfer. Please keep an eye on your paperless inbox or mailbox for this letter which will be sent via your correspondence preference.
Who will be my new servicer and what is their contact information?
Your loans will be transferred to FedLoan Servicing. FedLoan has over 50 years of student loan servicing and will do an excellent job servicing your loans. You can learn more about them and find their contact information at https://MyFedLoan.org.
When will my loan be transferred?
If you have already received the Loan Transfer letter we sent, please review the Expected Date of Transfer. Your loans will be transferred on or around that date and will be completely added to FedLoan Servicing’s system within two weeks from that date.
If you have not yet received the Loan Transfer letter, your loans are scheduled to transfer before the end of the year. We will send you a Loan Transfer letter two weeks before your loans are set to transfer to FedLoan Servicing. This letter will include an Expected Date of Transfer, so you can prepare accordingly.
Why are my loans being transferred to FedLoan?
After careful consideration, CornerStone and the Department of Education have agreed to end their servicing contract agreement. We are working hand in hand with them to successfully transfer your loans to FedLoan Servicing.
How will this transfer affect the current CARES Act Benefit extension offered by the Department of Education?
The transfer of your loans to FedLoan will have no impact on the CARES Act Benefit extension. Your loans are still scheduled to be on hold until December 31st, 2020, unless you’ve opted out of the forbearance. Additionally, the 0% interest rate is scheduled to hold until December 31st, 2020.
Will there be any changes to the terms of my loans because of the transfer?
No, this transfer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.
Will there be any changes to the status of my loans because of the transfer?
No, your loans will transfer to FedLoan as is. For example, if you’re currently in a deferment or forbearance, the postponement will continue once your loans have transferred.
Can I choose to opt out of the loan transfer?
Unfortunately, you are unable to opt out of this transfer as it is mandatory. We understand this may be difficult, but we are here to help every step of the way.
New Servicer Questions
When will FedLoan contact me?
FedLoan Servicing will contact you once your federal student loan account has been fully transferred and loaded to their system. If you have questions any time after the transfer date, please give them a call at 1-800-699-2908.
Will I have a new account number with Fedloan?
Yes, FedLoan will assign you a new federal student loan account number once your loans have been loaded to their system. They will inform you of your new account number in the first communication they send to you. Let’s make sure we have all your correct contact information to ensure you receive upcoming notifications from FedLoan.
Will FedLoan have online account access?
Yes, FedLoan has online account access. You will need to follow the instructions for signing up once they provide them to you. As part of that process, you’ll also establish a new username and password. Please be advised, you will not be able to start this process until your loans are transferred.
Once your FedLoan online account is active, you will be able to make payments and view your loan details, similar to how our online portal is set up. Additionally, they have a mobile app you can take advantage of! You can learn more about the services they offer on their website at https://MyFedLoan.org.
To whom will I make federal student loan payments once FedLoan is my servicer?
After your loans are transferred to FedLoan, you’ll make payments to them. They will notify you when your payments will be due and how you can submit your payments moving forward.
Can I make a payment during the transfer?
Up until your transfer date, you can submit payments as normal. Please be advised, depending on when you submit your payment, it may not appear until after your loans have been transferred to FedLoan Servicing.
After your transfer date, we are unable to accept payments as your loans will no longer be in our system; however you do have a couple of options to make payments during this time. You can mail your payment to FedLoan Servicing, who will then apply the payment once your account is active. OR you can wait until your FedLoan Servicing account is active and make a payment then. Please be advised, regardless of when FedLoan Servicing processes the payment, the payment effective date will be the date you submitted the payment.
I made a payment but it isn’t showing on my account, where is my payment?
If your loans have not yet transferred, we should have received your payment. Please contact one of our Loan Specialists to help locate your payment.
If your loans have already transferred, we have sent the payment to FedLoan Servicing to be processed. It can take two to four weeks for your payment to be processed, but it will be effective as of the date you submitted the payment. Once your account with FedLoan Servicing is active, please contact them for details regarding the of your payment.
Account Change Questions
Can I request a change to my account?
If your loans have not yet transferred, you can submit account changes as normal. Please be advised, depending on processing times, your change may not appear until after your loans have been transferred to FedLoan Servicing.
If your loans have already transferred, you will have to wait until your FedLoan Servicing account is active before requesting any account changes.
I requested a change to my account but I haven’t received notification of the change, what is the status of my request?
If your loans have not yet transferred, we should have received your request. Please contact one of our Loan Specialists to determine the status of your request.
If your loans have already transferred, your request has been forwarded to FedLoan Servicing and they will process it. Once your account with FedLoan Servicing is active, you can contact them regarding the status of your request.
If you have any further questions about the Loan Transfer, please contact one of our Loan Specialists. They are available to answer any additional questions you may have!