Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you may get a new pupil loan servicer.
Here’s what you need to understand.
nelnet and Great Lakes, which are actually a component of the same business and together service federal student loans for around 13 million student loan borrowers, may very well no longer service federal pupil loans after December 2020. The surprise announcement comes as the U.S. Department of Education, led by Education Secretary Betsy DeVos, seeks to improve pupil loan servicing. What is a pupil loan servicer? When you pay federal student loans, you do not spend the federal government or perhaps Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and offers customer service.
This is another major step toward the commitment of ours to improving customer care and holding the contractors of ours accountable for their performance, DeVos said. Students, parents, borrowers, along with schools deserve a world-class experience when dealing with [Federal Pupil Aid], and I am confident that FSA has employed the organizations with the know how, expertise and experience to provide that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions every year – contracts that are signed with five student loan servicers to service federal student loans and also give enhanced consumer support:
Edfinancial Services LLC
F.H. Cann & Associates LLC
MAXIMUS Federal Services Inc.
Missouri Higher Education Loan Authority (MOHELA)
Texas Guaranteed Student Loan Corporation (Trellis Company)
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What you should Know About Your Student Loan Servicer
DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ brand new plan, you might begin making pupil loan payments by way of a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos believes the present pupil loan servicing platform lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re surprised We’re shocked that the 2 highest rated servicers and the committed personnel who are accountable for achieving those rankings will not be looked at by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the lack and this selection of transparency in the process and will pursue every legitimate avenue available to ensure that students have the high quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under its contract, and Great Lakes was servicing $243.2 billion of student loans for 7.3 million borrowers under its contract. These servicing contracts expire on December fourteen, 2020 with 2 optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training and customer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
The thing you should do next
If Nelnet or perhaps Great Lakes service your federal student loans:
Keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You don’t need to apply for a brand new student loan servicer.
The Education Department will assign you a new student loan servicer and can speak with you in advance of any change.
After you are informed of your brand new student loan servicer, you can begin sending student loan payments to your new student loan servicer.
As soon as that happens, ensure to update auto payments.
How you can pay off student loans more rapidly If you’ve pupil loans, be sure to use a game plan. What’s the easiest way to pay off student loans faster? Start with these 4 options, each one of which have no fees: