Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or Great Lakes service the federal student loans of yours, you might get a new pupil loan servicer.
Here’s what you need to know.
nelnet and Great Lakes, which are part of the same business and together service federal student loans for approximately thirteen million pupil loan borrowers, can easily not 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 pupil loan servicing. What’s a student loan servicer? Whenever you spend federal student loans, you do not spend the federal government or maybe Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and supplies customer care.
This’s another major step toward our dedication to improving customer service and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world class encounter when managing [Federal Student Aid], and I am confident that FSA has hired the organizations with the knowledge, expertise and experience to provide that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions every year – contracts which are signed with 5 pupil loan servicers to service federal pupil loans and provide 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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Things to Know About Your Pupil Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new strategy, you may begin making pupil loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos believes the present student loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re surprised We are 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 agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the lack and this selection of transparency in the process and will pursue every legal avenue readily available to ensure 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 below the contract of its, and Great Lakes was servicing $243.2 billion of pupil 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. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or even Great Lakes service your federal student loans:
Keep making your regular monthly student loan payments to Nelnet or even Great Lakes.
You do not have to apply for a new student loan servicer.
The Education Department is going to assign you a new pupil loan servicer and often will speak with you in advance of any change.
As soon as you’re informed of your brand new student loan servicer, you can start sending student loan payments to your new pupil loan servicer.
As soon as that happens, ensure to update car payments.
How you can pay off pupil loans more rapidly If you have pupil loans, ensure to use a game plan. What is the best way to pay off pupil loans faster? Begin with these 4 options, each one of which have no fees: