Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you may get a new student loan servicer.
Here is what you need to know.
nelnet and Great Lakes, which are actually a part of the very same company and collectively service federal student loans for approximately 13 million pupil loan borrowers, could perhaps 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 boost student loan servicing. What’s a pupil loan servicer? If you pay out federal student loans, you don’t spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects the student loan payments of yours and supplies customer service.
This is another key step toward the commitment of ours to improving customer care and holding our contractors responsible for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class encounter when addressing [Federal Pupil Aid], and I am confident that FSA has employed the businesses with the know how, experience and expertise to provide that.
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On June 24, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions each year – contracts which are signed with five pupil loan servicers to service federal student loans and also 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 you should Know About Your Pupil Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Under DeVos’ new plan, you could start making student loan payments via a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer sites. DeVos feels the present student loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We are surprised that the two highest rated servicers as well as the dedicated personnel that are responsible for obtaining those rankings will not looked into by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this selection of transparency in the task and will pursue every legitimate avenue available to ensure that pupils have the premium quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet student loan servicing contracts. As of March thirty one, 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 student loans for 7.3 million borrowers under its agreement. 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 education as well as customer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Great Lakes or perhaps Nelnet.
You do not need to use for the latest pupil loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and can speak with you in advance of any transition.
Once you’re informed of your brand new student loan servicer, you can start sending student loan payments to your new pupil loan servicer.
Once that happens, be sure to update car payments.
How to pay off pupil loans faster If you’ve student loans, ensure to use a game plan. What is the simplest way to pay off student loans faster? Begin with these 4 options, all of which have no fees: