FedLoan to End its Contract with the Government 

The PHEAA (Pennsylvania Higher Education Assistance Agency), also known as FedLoan in Washington provides services to 9 million loan borrowers. FedLoan has decided to end its contract with the government by December 2021.  

FedLoan has been serving the Department of Education since 2009. It is one of the four main service providers that the Department of Education uses and processes more than $400 billion for student loans. 

The organization in a statement said that, since PHEAA started servicing federal loans in 2009, the repayment programs, “have grown increasingly complex and challenging while the cost to service those programs increased dramatically.”  

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