Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service your federal student loans, you may get a brand new pupil loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are a component of the very same business and collectively service federal student loans for around 13 million pupil loan borrowers, might 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 pupil loan servicing. What’s a student loan servicer? When you spend federal student loans, you do not pay the federal government or perhaps Department of Education directly. Rather, you pay the student loan servicer of yours, which collects the student loan payments of yours and provides customer service.
This’s another major 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, and schools deserve a world-class experience when addressing [Federal Student Aid], and I am confident that FSA has hired the organizations with the know how, 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 per year – 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 Student Loan Corporation (Trellis Company)
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What you should Know About Your Student Loan Servicer
DeVos wishes to streamline and simplify student loan repayment. Under DeVos’ brand new strategy, you could begin making student loan payments by way of a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos thinks the present student loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re shocked We’re shocked that the two highest rated servicers and also the dedicated personnel who are responsible for getting those rankings will not be considered by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this choice of transparency in the task and will engage in every legitimate avenue available to make sure that pupils have the high 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 under its contract, and Lakes that are Great 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. Individually, Nelnet services $48.7 billion in FFELP, private education as well as customer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
The thing you should do next
If Nelnet or 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 need to use for a new 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 change.
After you’re informed of your new pupil loan servicer, you’ll be able to begin sending pupil loan payments to your new pupil loan servicer.
Once that happens, be sure to update car payments.
How to pay off student loans more quickly If you’ve pupil loans, ensure to have a game plan. What’s the best way to pay off pupil loans quicker? Start with these 4 options, each one of which have no fees: