Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or even Great Lakes service the federal student loans of yours, you might get a brand new pupil loan servicer.
Here is what you have to know.
nelnet and Great Lakes, which are a part of the very same company and jointly service federal pupil loans for around thirteen million student loan borrowers, may 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 boost student loan servicing. What is a pupil loan servicer? Whenever you pay federal student loans, you do not spend the federal government or perhaps Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and offers customer care.
This’s another key step toward our commitment to improving customer care and holding our contractors accountable for the performance of theirs, DeVos said. Students, parents, borrowers, and schools deserve a world class encounter when managing [Federal Student Aid], and I’m confident that FSA has hired the companies with the expertise, experience and expertise to deliver 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 more than 68 million students across 5,800 postsecondary institutions annually – signed contracts with five student loan servicers to service federal pupil loans as well as deliver enhanced consumer 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 wants to streamline and simplify student loan repayment. Under DeVos’ brand new strategy, you could begin making student loan payments via a centralized platform, studentaid.gov, rather than through the unique student loan servicer sites. DeVos feels the present student loan servicing system lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re surprised We are surprised that the 2 highest rated servicers and the dedicated personnel that are accountable for obtaining those rankings will not be considered by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this decision and the absence of transparency in the process and can engage in every legal avenue readily available to make sure that pupils have the good 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 the contract of its, 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 two optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer 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 Great Lakes service your federal student loans:
Always keep making your regular monthly student loan payments to Great Lakes or Nelnet.
You don’t have to use for the latest student loan servicer.
The Education Department is going to assign you a brand new student 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 start driving student loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How to pay off student loans faster If you have student loans, ensure to use a game plan. What’s the simplest way to pay off pupil loans quicker? Start with these four options, every one of which have no fees: