Hi Heather,

Just received this info:

Your Direct Loan, with the Direct Loan Servicing Center, has been transferred to [new servicer].  Please note that it may take up to 10 days before your new servicer has completely loaded your information to their system.  Also, please be aware that if you are a borrower that was on the Direct Loan Servicing Center’s Kwikpay auto debit program, that this information will be sent to your new servicer.  You will shortly be receiving correspondence from your new servicer related to the transfer of your Direct Loan.  This will confirm that the new servicer has completed the transfer of your loan at which time you may contact [new servicer].

Effective immediately, please submit any required payments to [new servicer].  Make your check or money order payable to U.S. Department of Education and mail to:

U.S. Department of Education
PO Box 530815
Atlanta, GA 30353-0815
———————————————————————

So of course, my loan was indeed on auto-debit and it’s due on the 8th, which is terribly close to this alleged 10 days that it will take for them to get my info. So do I let it lie, or mail a check to them to arrive by the 8th? I can’t afford to write a check that they cash AND have them auto-debit the money, but I don’t want it to be delinquent. HELP! What happens if I can’t get through to clear this up with them? Just write the check anyway? Thanks!

Sigh.  Lots of borrowers are having their loans transferred to new servicers.  I’ve heard from a lot of folks that found their repayment plan information (like IBR certification) was not properly transferred and they had to get that straightened out.  Keep a close eye on that as well.  I don’t know what to tell you as far as whether to mail a check; I believe they intend to auto debit your account, but that you are right to be concerned that it might not be done in a timely manner.  I think if the change isn’t complete by the time they said it would be, you could probably deal with it then, but I just don’t know.

Quick update—I called the new servicer since I had still not gotten info from them and my payment is due in four days. They were able to locate my info via my SS# and confirmed that my QwikPay auto debit had transferred and that my usual payment would be debited on the same due date as always. The rep then showed me how to register my account online, so I was able to view my account and confirm that everything had transferred correctly and my kwikpay auto debit was indeed ready to debit on Thursday.

Strangely easy…