Your loan servicer is the company that sends you your bill each month. Servicers are private companies that collect payments on a loan, respond to customer service inquiries, and perform other administrative tasks associated with maintaining a loan. Loan servicers also disburse loans/funds, monitor loans while the borrowers are in school, process deferments and forbearances, respond to borrower inquiries, maintain loan records, and ensure that the loans are administered in compliance with federal regulations and other legal requirements.