Nelnet And Great Lakes Will not Service Your Federal Pupil Loans
When Nelnet or even Great Lakes service your federal student loans, you might get a brand new student loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are a part of the same business and jointly service federal pupil loans for around thirteen million pupil loan borrowers, might no longer 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 federal student loans, you don’t spend the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects the student loan payments of yours and offers customer support.
This’s another major step toward the commitment of ours to improving customer service and holding the contractors of ours accountable for their performance, DeVos said. Pupils, parents, borrowers, and schools deserve a world-class encounter when managing [Federal Student Aid], and I am confident that FSA has employed the businesses with the expertise, expertise and experience to provide 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 sixty eight million students across 5,800 postsecondary institutions each year – signed contracts 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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What to Know About Your Student Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ new strategy, you could start making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the individual pupil loan servicer sites. DeVos believes the present student loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re surprised We’re shocked that the two highest rated servicers as well as the dedicated personnel that are responsible for getting those rankings will not be looked at by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this choice of transparency in the process and will pursue every legal avenue available to ensure that students have the premium quality service they have 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 student loans for 5.5 million borrowers below the contract of its, 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 two optional six-month extensions through December fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers which are not influenced by the Education Department’s decision.
What you need to do next
If Nelnet or Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly student loan payments to Great Lakes or Nelnet.
You don’t need to apply for a new student loan servicer.
The Education Department will assign you a new pupil loan servicer and often will speak with you in advance of any change.
After you are informed of your brand new pupil loan servicer, you’ll be able to begin driving student loan payments to your new student loan servicer.
When that happens, be sure to update auto payments.
How to pay off student loans faster If you’ve student loans, be sure to end up with a game plan. What is the best way to pay off student loans faster? Begin with these 4 options, all of which have no fees: