My federal loans are not owned by the government

Hi All,

Crazy times here right. So amidst trying to keep payments to settle my private loans and being unemployed I found out something distressing. My federal student loans (Stafford I believe) are not owned by the Department of Education. So believing my loans were in deferral I was perplexed by Navient sending me a nasty email. I log in, my accounts are delinquent. I’m angry and I call them up. I’m told my loans are not covered by the cares act or the presidential mandate. I tell them they are federal loans, they tell me they are not owned by the DOE…Who owns them I ask…silence "I don’t know, I’d have to ask my supervisor "…What? How can they not be owned by the DOE? Ok whatever, it is what it is. But now I want to know, if I consolidate these loans (haven’t done that yet) will it put them with the DOE? Is there a way to choose the lender when I consolidate? Does anyone have any info on this weirdness? God I wish I had never gotten involved with this business…if I could return my degree I would! Thanks in advance.

-Nichole R

I have 150,000 total. My consolidated loans are also not a part of the cares act, even though they are sub and unsub. However i am a federal employee and we have the our own thing to where we can have our loans transferred out of navient, and those are grad loans which i thought were not doe loans… who the fuck knows whats happening with them. Im confused too.

Hi there,

You more than likely have FFEL loans. These loans were often used and are loans guaranteed by the government but owned and serviced by a third party loan service provider.

This means that if you default on the loans, the loan service provider (lsp) still gets their money and the doe can come after you.

FFEL loans are not included in the CARES act at all. The interest still accrues and payment is still expected.

FFEL loans were abolished in 2010 and the doe started issuing only direct loans.

I believe you can refinance the loans into a direct loan at the interest of today.

Hope that helps.