Nelnet And Great Lakes Won’t Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you may get a whole new student loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are actually a part of the same company and collectively service federal student loans for approximately 13 million student loan borrowers, can easily not anymore service federal student loans after December 2020. The surprise announcement comes as the U.S. Department of Education, led by Education Secretary Betsy DeVos, seeks to boost pupil loan servicing. What’s a pupil loan servicer? When you spend federal student loans, you don’t pay the federal government or Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and provides customer support.
This is another major step toward our commitment to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world-class experience when addressing [Federal Student Aid], and I’m confident that FSA has employed the organizations 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 more than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions yearly – contracts that are signed with 5 pupil loan servicers to service federal student loans as well as give 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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Things to Know About Your Pupil Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ new plan, you could begin making student loan payments through a centralized platform, studentaid.gov, instead of through the unique pupil loan servicer sites. DeVos feels the present student loan servicing platform lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We are shocked that the two highest rated servicers and the dedicated employees that are liable for achieving those rankings won’t be considered by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this selection and the lack of transparency in the process and often will engage in every legitimate avenue readily available to ensure that students 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 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 two optional six month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private education and consumer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
What you should do next
When Nelnet or perhaps Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t have to use for a new student loan servicer.
The Education Department will assign you a new student loan servicer and can communicate with you in advance of any transition.
After you are informed of your new pupil loan servicer, you can start driving student loan payments to your new student loan servicer.
As soon as that happens, ensure to update auto payments.
How you can pay off pupil loans more quickly If you have student loans, ensure to use a game plan. What is the easiest way to pay off student loans faster? Start with these 4 options, all of which have no fees: