Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or Great Lakes service your federal student loans, you might get a new student loan servicer.
Here’s what you have to understand.
Great Lakes and nelnet, which are actually part of the same business and together service federal pupil loans for around thirteen million student loan borrowers, could perhaps not 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 student loan servicing. What’s a student loan servicer? When you pay out federal student loans, you do not spend the federal government or perhaps Department of Education directly. Rather, you pay your student loan servicer, which collects the student loan payments of yours and offers customer service.
This’s another major step toward the dedication 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 managing [Federal Pupil Aid], and I’m confident that FSA has hired the companies with the knowledge, expertise and experience to give that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to more than 68 million pupils across 5,800 postsecondary institutions each year – signed contracts with five student loan servicers to service federal pupil loans and also provide enhanced customer support:
Edfinancial Services LLC
F.H. Cann & Associates LLC
MAXIMUS Federal Services Inc.
Missouri Higher Education Loan Authority (MOHELA)
Texas Guaranteed Pupil Loan Corporation (Trellis Company)
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What to Know About Your Pupil Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Under DeVos’ new plan, you may start making pupil loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer sites. DeVos believes the current pupil loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re surprised We are surprised that the 2 highest rated servicers as well as the dedicated employees that are responsible for achieving those rankings won’t looked into by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the lack and this choice of transparency in the process and can pursue every legitimate avenue readily available to ensure that pupils have the good quality service they have come to expect from us.
In June 2009, the Education Department awarded Nelnet student loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under its contract, and Lakes which are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its contract. These servicing contracts expire on December 14, 2020 with 2 optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training and consumer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
The thing you must do next
If Nelnet or Great Lakes service your federal student loans:
Keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t need to use for a new student loan servicer.
The Education Department will assign you a brand new pupil loan servicer and often will get in touch with you in advance of any change.
As soon as you’re informed of your new pupil loan servicer, you can start sending student loan payments to your new student loan servicer.
When that happens, be sure to update car payments.
How you can pay off pupil loans faster If you’ve pupil loans, ensure to have a game plan. What is the simplest way to pay off pupil loans faster? Begin with these four options, all of which have no fees: