A servicer is a company that manages/services your loans.
If you borrow a federal loan student loan, you are borrowing money from the government. The government then gives that loan to a servicer to manage all of your payments.
If you take out a mortgage, your loan may have a servicer that manages your loan. The bank/lender borrows you the money for your home and the servicer manages the loan. This is not always the case.
Examples of servicers for student loans
- Great Lakes
Examples of servicers for mortgage loans
- Mr. Cooper