Many borrowers are wondering if Sloan Servicing is legit, how to log in, and whether their Sloan student loans qualify for SAVE or PSLF.
The short answer: Sloan is real — it’s a Nelnet branch that only handles commercially-held FFEL loans.
If you have a Sloan student loan, you may need to consolidate into a Direct Loan to access lower payments and forgiveness options.
What is Sloan Servicing? (FFEL Loan Basics)
Sloan Servicing is brand under the Nelnet umbrella created to handle a very specific type of debt: commercially-held Federal Family Education Loan (FFEL) Program loans.
What does this mean for borrowers?
- Unlike MOHELA or Aidvantage, Sloan doesn’t service a wide mix of federal loans — it only handles this one niche group.
- If your loans were moved to Sloan, it’s because they’re commercially-held FFEL loans, not Direct Loans.
The catch is that FFEL borrowers often miss out on lower payments and forgiveness opportunities. The good news: in most cases, these loans can be consolidated into a Direct Loan, which opens the door to income-driven repayment (like SAVE) and programs such as PSLF.
What are commercial FFEL loans, and why were they moved to Sloan Servicing?
The Federal Family Education Loan (FFEL) Program was created to help more Americans afford college. Students could borrow from a private lender, and the federal government guaranteed the loan would be repaid. In 2010, the government discontinued the program and stopped using banks and lenders as intermediaries between students and the federal government. Many of the loans created during this program are still commercially-held loans.
If you have loans with Sloan Servicing, you have commercial FFEL loans. In other words, you owe money to a third-party lender, but the federal government continues to guarantee the debt.
The good news in this situation is that commercial FFEL loans are still federal loans. Borrowers may have to jump through some hoops, but it is possible to transfer the debt away from Sloan Servicing and qualify for repayment plans like SAVE and forgiveness programs like Public Service Loan Forgiveness.
Enrolling Sloan Servicing Loans in SAVE and Public Service Loan Forgiveness (PSLF)
The problem with Sloan Servicing Loans is that they are commercial FFEL loans, and these loans are not eligible for PSLF or SAVE.
However, borrowers can consolidate the debt into a federal direct consolidation loan to gain eligibility. The consolidation process repays the commercial loan in full and creates a new loan funded by the federal government. For most FFEL borrowers this means eligibility for SAVE and PSLF.
Additionally, borrowers who consolidate before June 30, 2024, can maximize their credit from previous payment activity. In the past, consolidated restarted progress toward loan forgiveness. Right now, it can potentially speed up the forgiveness clock.
Quick FAQs:
- Can I enroll in SAVE with Sloan loans? Not directly. You must first consolidate into a Direct Loan.
- Do Sloan loans qualify for PSLF? No, unless you consolidate into a Direct Loan.
- Will I lose my progress toward forgiveness if I consolidate? Normally yes, but under the IDR account adjustment (deadline June 30, 2024), past payments may still count.
- What about Parent PLUS loans? Parent PLUS can be consolidated to qualify for PSLF, but not SAVE (unless you use the double-consolidation loophole).
Exceptions for Parent PLUS and Spousal Consolidation Loans. Within the already complicated world of commercial FFEL loans, some loans are extra complicated.
If you have Parent PLUS loans, you can still consolidate to gain eligibility for PSLF, but you won’t be eligible for SAVE unless you use the double-consolidation loophole.
Spousal consolidation borrowers will need to wait for new regulations to be implemented before they can take any action on their loans.
Consolidation Tips for Sloan Borrowers
Most borrowers will find that consolidating their commercially-held FFEL loans is the best approach.
Opting for a federal direct loan means fewer strings attached and more repayment and forgiveness opportunities. The one-time IDR count update also removes much of the guesswork for people who consolidate before June 30, 2024.
Consolidating their loans gives borrowers the unique opportunity to choose their loan servicer. Generally speaking, there is no loan servicer with a great reputation, and all loan servicers must follow the same rules, so there is no strategic advantage to choosing one over the other.
That said, at the time of this article, MOHELA hold times appear to be consistently longer than most other servicers, so choosing anyone else is recommended. Sadly, MOHELA is unavoidable for those pursuing PSLF. If you plan on pursuing PSLF, you should pick MOHELA, as they handle all PSLF borrowers.
Note: Once you consolidate, your Sloan account will close, and you’ll need to log in through your new servicer’s website to manage payments. Expect a short transition period where your old login no longer works and the new one isn’t active yet. Be sure to confirm your new servicer details at StudentAid.gov after consolidation so you don’t miss a payment.
When to Stick with Sloan Servicing
If most borrowers should consolidate their commercial FFEL loans right now, what’s the exception to the rule?
The narrow exception is for people who have a premium interest rate discount on their loans. Back when some commercial lenders offered FFEL loans, they sometimes included perks like:
- A lower interest rate for on-time payments (e.g., 0.25% off after 12 months of on-time payments).
- An additional discount for using auto-debit.
- Promotional rates tied to special borrower programs.
If your federal loan interest rate seems much lower than current federal Direct Loan rates, you may be benefiting from one of these discounts. Since Sloan inherited commercially-held FFEL loans, it may still be applying those original lender discounts.
The issue: once you consolidate into a Direct Loan, those perks disappear. Your loan will reset to the standard Direct Loan interest rate, which may be higher.
This trade-off is usually worth it for borrowers who need SAVE or PSLF, since those programs often save more money long-term. But if you’re not pursuing forgiveness and can realistically pay off your debt in full, keeping the lower interest rate with Sloan could be the smarter choice.
As always, the right move depends on your other debts, loan balance, and financial situation. If you’re unsure, ask Sloan directly whether your loan currently carries an interest rate discount.
Contacting Sloan Servicing
If you need to reach Sloan, their phone number is 833-597-5626 (833-59-SLOAN).
International: 531-310-5286
You can also reach them online:
- Borrower portal/login: sloanservicing.com
- Email form: available through their Contact Page
Tips for borrowers:
- Sloan’s online portal has occasionally experienced outages. If the site is down when you need to make a payment, log in at StudentAid.gov to confirm your loan status and servicer details. You can also make payments by phone during portal downtime.
- When possible, communicating with lenders via email is ideal. Use email or the online form instead of phone calls so you have written documentation of your communication. The email form is available here.
FAQs About Sloan Servicing
Yes. Sloan is a Nelnet-owned servicer that manages commercially-held FFEL loans. It is not a scam, though its narrow focus means many borrowers will need to consolidate to access better repayment options.
If your federal student loans are “commercially-held FFEL loans,” they were moved to Sloan because it specializes in this loan type.
Not directly. FFEL loans serviced by Sloan must first be consolidated into a Direct Loan before becoming eligible.
Try again later, or call customer service at 833-597-5626. You can also log into StudentAid.gov to confirm your servicer and loan details.
Some Nelnet loans were reassigned to Sloan (FFEL), while others went to MOHELA or Aidvantage. Always confirm through StudentAid.gov to see which servicer currently holds your loans.
A Sloan student loan isn’t a special type of loan — it simply refers to a Federal Family Education Loan (FFEL) managed by Sloan Servicing, a Nelnet branch. These loans are different from Direct Loans, and borrowers often need to consolidate to qualify for programs like SAVE or PSLF.
About the Author
Pedro Gomez is the new Student Loan Sherpa and a Certified Financial Planner™ with over a decade of experience helping clients navigate complex financial decisions. He is the founder of Global Financial Plan, where he writes about international living, geoarbitrage, and strategies for retiring young, and also leads Brickell Financial Group, a registered investment advisory firm focused on accelerating financial freedom.
Pedro is the architect behind the “12 Levels of Financial Freedom” framework and blends student loan strategy with long-term planning, tax efficiency, and investing. His work is especially geared toward upwardly mobile professionals, entrepreneurs, and those looking to design a life beyond the default path.
Pedro is available for strategy sessions and press inquiries.
My 18 year old Nelnet loan was suddenly transferred to Sloan about 9 months ago without notice. They said my payment was late but the payment was drawn from my account as usual. Then they said only 10% of my payment would be applied to principal. I have been paying on my law school loan 18 years and now only 10% goes to principal? Can Sloan legally do this?
It’s really hard to answer these questions with any sort of certainty without getting more details.
However, I can say that the percentage of your payment that is applied to principal will depend on the repayment plan you are on. If you are on an income-driven repayment plan, it is possible that you monthly payment doesn’t even cover the interest.
If your loans got moved over to Sloan, it also likely means that you have FFELP loans. Given the age and what they were for, it makes sense. I’d encourage you to investigate consolidating the loans and exploring your options for loan forgiveness.
Did they report your payment as late to any credit agencies? Was this a temporary communication issue or are they still showing you as behind even and still withdrawing payments?
Just found out about the SAVE program when I finally got so frustrated with Sloan Servicing that I asked if I could just go to another loan servicer. We were transferred from Nelnet to Sloan with no notice. Nelnet refuses to help as we had already been transferred. We’ve been trying to work with Sloan Servicing for several months, but continued to be told that we owed hundreds of dollars and they would be sending us to collections. All of this we found out when we received a late payment notice. We were in the middle of a $0 repayment plan with Nelnet. We applied to get our loan consolidated using SAVE, but we have missed the deadline. Is there anything we can do?
That sounds like a really frustrating situation Michelle.
The deadline to consolidate to get the most favorable terms was July 1. However, because of the ongoing lawsuits attempting to block SAVE, some borrowers were not able to sign up by the deadline. I’m hopeful that the Department of Education gives some flexiblity to the borrowers who didn’t quite make the deadline.
What is the corporate email address for Sloan Servicing? I can’t connect with them! Their site states to get email address click, but there is nothing to click on. I am soooo sick of this company!
In my experience, most of the serivcers make it difficult to just send them an email with quesitons. The Contact page offers a mailing address if you want to stick with written correspondence as well as a phone number to call them directly.
As frustrating as it is, sometimes a phone call is unavoidable.
I am in the process of applying for a total disability forgiveness.
My student loan is or was with Sloan Services.
I put my disability application in about a month ago.
Sloan said they needed another documentation than that which I sent them.
I sent the requested information in. They said they did not receive it?
I sent the info in again.
They received it.
I received a letter from a collection agency named Allied Interstate.
They have my entire loan now.
I am 71 years old and been disabled for 12 years.
I need my loan forgiveness.
Why did they send my student loan to a collection agency after I applied for Permanent Disability Forgiveness, which I am qualified to receive?
What is going on?
I feel like i have been scammed?
I’ve got a few thoughts based on what you have said Jan.
First, I think it would be reasonable for you to ask for a deferment or a forebearance while your disability discharge application is pending. If granted, that would pause any collections activity.
Second, I find it a bit strange that you are not working with NelNet on the applicaiton. They are the servicer in charge of the applications. You can read more about the process here: https://studentaid.gov/manage-loans/forgiveness-cancellation/disability-discharge
Finally, I’d encourage you to consider consolidating your loans before the end of this month (as described in this article). You may have to restart the disability discharge process, but it would resolve any default on your loan, and help you qualify for the one-time payment count adjustment as well as more affordable repayment plans like SAVE. This would make getting your debt forgiven considerably easier and more affordable if you are unable to secure a disability discharge.