is loan servicing the same as debt servicing 
while they sound similar loan servicing and debt servicing are two different things loan servicing refers to administrative work performed by lenders or by other companies they hire such as sending out monthly statements to borrowers and processing their payments 2 debt servicing refers to the process of a borrower paying down a loan or other debt the bottom linedebt service refers to the money that a person business or government needs to cover the payments on a loan or other debt for a particular time period a company s debt service coverage ratio measures its ability to handle additional debt by comparing its available income to the amount it is currently paying to service its debts 