Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or Great Lakes service your federal student loans, you may get a brand new pupil loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are a part of the same business and collectively service federal student loans for around 13 million pupil loan borrowers, may not 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 enhance pupil loan servicing. What is a student loan servicer? When you pay 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 your student loan payments and provides customer service.
This is 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 Student Aid], and I’m confident that FSA has hired the companies with the expertise, experience and expertise to provide that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to greater than 68 million students across 5,800 postsecondary institutions annually – contracts that are signed with 5 student loan servicers to service federal student loans and deliver 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 Student Loan Servicer
DeVos wishes to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you may start making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer websites. DeVos feels the current student loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are surprised We’re shocked that the two highest rated servicers as well as the dedicated employees that are liable for getting those rankings won’t be considered by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this decision and the absence of transparency in the process and can pursue every legitimate avenue readily available to make sure that students have the premium 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 below its contract, and Great Lakes 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 fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling and customer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or even Great Lakes service your federal student loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Great Lakes or even Nelnet.
You do not have to apply for a new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and can get in touch with you in advance of any transition.
As soon as you’re informed of your new student loan servicer, you’ll be able to begin sending student loan payments to your new pupil loan servicer.
Once that happens, ensure to update car payments.
How you can pay off pupil loans more rapidly If you have pupil loans, make sure to have a game plan. What’s the easiest way to pay off pupil loans quicker? Begin with these four options, all of which have no fees: