Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or even Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here is what you need to understand.
nelnet and Great Lakes, which are actually part of the very same business and jointly service federal student loans for around 13 million student loan borrowers, can easily not anymore 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 pupil loan servicer? Whenever you pay out federal student loans, you don’t pay the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and supplies customer support.
This is another key step toward our dedication to improving customer care and holding our contractors responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world class experience when addressing [Federal Pupil Aid], and I am confident that FSA has employed the businesses with the knowledge, experience and expertise to provide that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions yearly – signed contracts with five student loan servicers to service federal student loans and give enhanced consumer 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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Things to Know About Your Student Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ new plan, you could begin making student loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos believes the current student loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are shocked We are shocked that the two highest rated servicers and also the committed personnel who are liable for achieving those rankings will not be looked at by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this choice and the absence of transparency in the process and will pursue every legitimate avenue readily available to make sure that students have the premium quality service they’ve 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 under its contract, and Lakes which are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its contract. 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 training as well as customer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
The thing you must do next
When Nelnet or Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not need to apply for the latest pupil loan servicer.
The Education Department is going to assign you a new pupil loan servicer and can get in touch with you in advance of any change.
As soon as you are informed of your brand new student loan servicer, you can begin sending pupil loan payments to your new pupil loan servicer.
Once that happens, be sure to update car payments.
How you can pay off pupil loans more quickly If you’ve pupil loans, be sure to end up with a game plan. What is the best way to pay off pupil loans quicker? Start with these four options, each one of which have no fees: