Mapping Your Future: Reminder issued about winter weather and impact on loan servicers


Reminder issued about winter weather and impact on loan servicers

By Catherine Mueller

February 01, 2024

No matter what the groundhog predicts tomorrow, the financial aid industry must prepare for six more weeks of winter.

The Department of Education this week reminded the financial aid industry that some federal loan servicers may have to close  and implement contingency plans during hazardous weather conditions.

In a January 31 Electronic Announcement, the Department of Education said a servicer may need to close early or for an entire day to ensure personal and public safety during a hazardous weather event. The Department noted that because servicers are located across the country, it "is impossible to predict when hazardous weather conditions may affect one or more of the servicing centers."

According to the Department, each of the federal loan servicers will implement contingency plans and remain open as much as possible when hazardous weather occurs in an area in which a servicer is located. However, if a servicing center must close due to hazardous weather conditions, the Department said the affected federal loan servicer will use established communication practices to inform borrower and school customers of the temporary closure.

Anyone with questions following the temporary closure of a servicing center, should contact the federal loan servicer directly.