The Department of Education announced that Granite State Management and Resources (GSMR) will stop processing federal student loans. More than 1.3 million students were affected by the program. If Granite State was your loan servicer, the DOE or Edfinancial Services may have contacted you by now. However, student debt transfers can go wrong.

Knowing what to do next and how the Granite State student loan transfer affected you reduces student loan repayment stress. Following that, Edfinancial Services will be taking over all the matters from GSMR.

Things to Expect When GSMR Student Loans Transfer to Edfinancial

Many debtors switch from GSMR to Edfinancial Services as scholar loan servicing modifications. Heres what you should expect to happen next:

Communication from Edfinancial Services

The DOE and Edfinancial Services must have notified you of your loan transfer of the transition. They will contact you after transferring your federal student loans to Edfinancial Services. This will likely be an email or letter explaining the loan transfer. This reply will confirm that Edfinancial is servicing your loans and provide important information regarding the following steps. To avoid missing payment deadlines, contact both organizations immediately if you have not heard from them yet.

Welcome Letter

Financial Services will send a welcome letter after the transfer. This letter will provide the companys contact information for student loan questions or help and detail the next steps for a smooth transition. These may include creating an Edfinancial account to manage your loans, make payments, and view repayment plan details.

Transferring

GSMR and Edfinancial will work together to ensure a smooth handover. This partnership ensures loan payments are executed correctly and your payback schedule is not disrupted. You can trust GSMR to account for your costs and retain your loan history.

Creating an Online Account

Once your loans are with Edfinancial, create an online account. This is crucial for proper loan management. Bank account information is required for automatic withdrawals or other payment options. You may only see loan information after the transfer, even if youve been paying.

Loan Terms and Rates

Borrowers wonder how the transfer will affect their loan terms and interest rates. Your loan terms and interest rates will not change owing to the transfer. From GSMR to Edfinancial, there is a servicing change, not a loan arrangement change. You can keep paying on the same terms as GSMR.

Actions to Take After the Transfer

Take preventive steps to ensure a successful loan transfer from Granite State Management & Resources (GSMR) to Edfinancial Services. Although the DOE helps the process, borrowers typically have issues with servicer customer service. To prepare for the change, consider these steps:

• Financial Services and DOE correspondence should be monitored. This keeps you updated on loan status.
• Do loan tracking and payment management with your account with Edfinancial.
• Record your prior payments to GSMR and transfer communications. This will help with discrepancies.
• Stay informed and learn about Edfinancials payment and customer service policies.

Other than that, there are some major steps that you can take to avoid errors and preserve your loans. Follow these crucial procedures after your loan transfer:

Get Your NSLDS

Download your National Student Loan Data System paperwork before transferring your loans. This U.S. Department of Education system stores all federal student funding information. Federal Student Aids website has your records and downloading your data requires your FSA ID and password. This information helps you track your loans and ensure accuracy during the loan servicer switch. Remember to preserve a copy of these documents as you repay your student loans.

Keep Good Records

Keep your loan and payment documents to protect yourself further. Also, keep loan emails and letters. This works excellently with screenshots. Google Drive can centralize your files. After receiving the transfer notification, set up your Edfinancial account. Follow your new servicers instructions, and examine the servicers internet portal for loan repayment, customer service, and other relevant information.

Check Your Loan Info

After logging in, review your loan information and compare it to your records. If you detect loan or payment inconsistencies, fix them immediately. Acting quickly is crucial, as getting support from your previous servicer can become more complicated if too much time passes. Keeping your information accurate helps ensure a smooth transition and prevents potential loan repayment problems. Maintain proactive student loan management to avoid issues.

Alternative to Student Loan Repayment

If this transition is overwhelming for you, you should prevent future transfers to avoid another problematic servicer shift or to get out of federal student loans. Student loan refinancing is one option.

When you refinance federal student loans, a private lender pays off your debts and gives you a new loan with a new interest rate and terms. Your credit score and records may qualify you for less expensive interest prices. This can save thousands over the life of your loan or lower your monthly payments if you choose a longer term. Remember that refinancing government loans makes them private. You lose federal loan programs and protections like:

• Student loan forgiveness programs like PSLF.
• Payment plans are based on income.
• Federal loan repayment alternatives.
• Extra loan deferment and forbearance.
• Options for direct consolidation loans.

Moreover, check that you dont need these government protections when refinancing student loans. Build emergency funds if unexpected expenses or a hardship prohibit you from paying your private student loan.

Bottom Line

Your Granite State student loans are expected to get transferred to Edfinancial smoothly and with no changes. However, the number of transfers involving millions of borrowers can cause errors. Hence, you must be proactive to keep everything in order.

Compare Edfinancial loan records to your own to verify accuracy. Moreover, check loan balances, payment histories, and interest rates. You should also address differences immediately to avoid payback issues. In the end, dont panic; managing student loans throughout this upheaval requires remaining educated and organized.