Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or Great Lakes service your federal student loans, you might get a brand new student loan servicer.
Here is what you have to know.
nelnet and Great Lakes, which are actually a part of the very same business and together service federal student loans for approximately 13 million student 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 enhance student loan servicing. What’s a pupil loan servicer? If you spend federal student loans, you don’t spend the federal government or Department of Education directly. Instead, you pay the student loan servicer of yours, which collects your student loan payments and provides customer care.
This is another key step toward the commitment of ours to improving customer service and holding our contractors responsible for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world-class encounter when managing [Federal Pupil Aid], and I’m confident that FSA has employed the companies with the know how, experience and expertise 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 students across 5,800 postsecondary institutions yearly – signed contracts with five pupil loan servicers to service federal pupil loans and also give 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 to Know About Your Pupil Loan Servicer
DeVos would like to streamline and simplify student loan repayment. Under DeVos’ brand new plan, you may start making student loan payments through a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer websites. DeVos believes the present pupil loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re surprised We’re shocked that the two highest rated servicers and the committed employees who are accountable for achieving those rankings won’t be looked at by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this selection and the absence of transparency in the process and can pursue every legal avenue readily available to make sure that pupils 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 31, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers below the contract of its, and Lakes which are Great 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 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
What you should do next
When Nelnet or perhaps Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Nelnet or even Great Lakes.
You don’t need to use for the latest pupil loan servicer.
The Education Department is going to assign you a new student loan servicer and often will speak with you in advance of any transition.
After you are informed of your new student loan servicer, you’ll be able to begin driving student loan payments to your new student loan servicer.
When that happens, ensure to update car payments.
How you can pay off student loans more quickly If you’ve pupil loans, be sure to have 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: