Core Insights - The article discusses the challenges faced by borrowers during the transfer of their federal student loans to new servicers, highlighting the confusion and potential financial implications of these transitions [5][9]. Borrower Experience - Many borrowers, including Annie Nova, experience anxiety and confusion when their loans are reassigned, particularly due to a lack of clear communication from the Department of Education [1][5]. - In 2024, over 1 million borrowers were transferred from Mohela to other servicers, and in 2022 and 2023, more than 30 million borrowers experienced similar transfers [2]. Administrative Forbearance - During the transition between servicers, loans are often placed in administrative forbearance for up to 60 days, which can lead to accruing interest charges despite no payments being due [4][8]. - Borrowers may not be aware of the interest accumulation during forbearance, as communication from the Department of Education can be unclear [4][8]. Servicer Transition Process - The transition process typically begins with a notification from the current servicer, followed by the new servicer loading the loan into their system [6]. - There is a gap during the transition where the old servicer does not accept payments, and the new servicer may not be ready to receive them, creating a "no man's land" for borrowers [6][7]. Recommendations for Borrowers - Borrowers are advised to keep detailed records of their loan information, including balance and interest rates, to address any discrepancies that may arise during the transfer [10][14]. - It is crucial for borrowers to enroll in the new servicer's payment system promptly to avoid extra interest charges [11]. - If extra interest accrues during forbearance, borrowers should contact the new servicer to request a review and potential reversal of charges [12][13].