<prompt> Human: So my student loans were transferred from Direct loans ACS to fedloan servicing. This is apparently part of the new law that supposedly cuts private banks out of the student loan industry. Now there are all of these non-profit companies that are buying up federal student loans. In my case fedloan servicing. The thing is, all my student were always from ACS the government so Im confused as to why they were transferred to an NGO. I got a letter showing my current balance and principal and in most cases the principal is about the same and in a few cases higher than the original loan amount. I realize that a few of my loans were not subsidized and the interest was re-capitalized at the end of forbearance. But my forbearance period ended two years ago and I have made every payment. I would have to check my balance previous to the transfer, but the direct loan website shows that I owe nothing because they transferred it on August 8th to this new company.So I called the new company and navigated the phone maze to a real person. She informed me that my interest was re-capitalized when the loans were transferred. Now it may not seem like much, but a few hundred added to the principal of the loans works out to be thousands more dollars paid over the life of the loan, especially at the ludicrous interest rate set by congress. I asked her why if I made all my payments and have never been in forbearance my loans were recapitalized. She transferred me to her supervisor. The supervisor was also nice and began to explain to me the process of the loan transfer. Apparently when they transferred the loans on August 8, they put it into forbearance for a day. This allows them to recapitalize the loan even though I am on direct debit and have never missed a payment. When he realized that I understood exactly what that meant, basically using a loophole of book keeping to add money to the principal he changed his tune. He assured me that no re-capitalization had occurred on my account and that the previous person I talked to was wrong.I dont really trust the supervisor. The tone in his voice got a lot more slick and reassuring lying? when he told me my loans were not re-capitalized. But the only way to check would to be to see my principal amounts on the direct loan website and verify them with the new totals.Is there any way to check the principal before the transfer?  <response>: Before the multiple federal loan servicer environment, ACS was the only Direct Loan servicer. ACS no longer has the government contract, so all loans held by them have been moved to other federal loan servicers. Heres a link to more information than youd probably ever want to know about the loan transfer process 