Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or Great Lakes service your federal student loans, you may get a whole new student loan servicer.
Here is what you have to know.
Great Lakes and nelnet, which are a component of the very same business and together service federal pupil loans for around 13 million pupil loan borrowers, can easily not anymore 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 enhance student loan servicing. What’s a student loan servicer? Whenever you pay out federal student loans, you do not pay the federal government or Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and provides customer support.
This is another key step toward the dedication of ours to improving customer support and holding the contractors of ours responsible for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world class experience when addressing [Federal Pupil Aid], and I am confident that FSA has hired the companies with the expertise, expertise and experience to give that.
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On June 24, the Department of Education announced that Federal Student 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 which are signed with 5 pupil loan servicers to service federal pupil 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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DeVos wishes to streamline as well as simplify pupil loan repayment. Underneath DeVos’ new plan, you may begin making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer sites. DeVos believes the current student loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re shocked We’re surprised that the 2 highest rated servicers and also the dedicated personnel that are accountable for obtaining those rankings will not be looked at by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this choice of transparency in the task and often will pursue every legal avenue readily available to make sure that students have the high 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 the contract of its, and Lakes which are Great 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 fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as consumer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.
The thing you need to do next
If Nelnet or perhaps Great Lakes service your federal pupil loans:
Always keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t need to use for a new pupil loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and often will communicate 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 pupil loan payments to your new student loan servicer.
Once that happens, ensure to update auto payments.
How you can pay off student loans more quickly If you have pupil loans, make sure to end up with a game plan. What’s the best way to pay off pupil loans faster? Begin with these four options, every one of which have no fees: