Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a new pupil loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are a component of the same company and together service federal pupil loans for approximately 13 million pupil loan borrowers, could very well 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? If 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 your student loan payments and offers customer care.
This’s another major step toward the commitment of ours to improving customer care and holding our contractors accountable for the performance of theirs, DeVos said. Pupils, parents, borrowers, along with schools deserve a world class experience when managing [Federal Student Aid], and I am confident that FSA has hired the businesses with the know how, expertise and experience to give that.
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On June 24, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions per year – signed contracts with 5 student loan servicers to service federal student loans and provide enhanced customer 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 Student Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ new strategy, you may begin making student loan payments by way of a centralized platform, studentaid.gov, instead of through the unique student loan servicer sites. DeVos feels the current student loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We are shocked that the 2 highest rated servicers as well as the dedicated employees who are liable for obtaining those rankings will not be considered by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this choice and the lack of transparency in the task and often will engage in every legal 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 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below its contract, and Lakes that are Great 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 two optional six month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling and consumer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
What you need to do next
If Nelnet or Great Lakes service your federal student loans:
Always keep making your regular monthly student loan payments to Nelnet or perhaps Great Lakes.
You don’t need to use for a new student loan servicer.
The Education Department will assign you a brand new pupil loan servicer and often will speak with you in advance of any transition.
As soon as you’re informed of your new pupil loan servicer, you’ll be able to begin sending student loan payments to your new pupil loan servicer.
As soon as that happens, be sure to update car payments.
How to pay off pupil loans faster If you’ve student loans, be sure to end up with a game plan. What’s the easiest way to pay off student loans faster? Begin with these 4 options, every one of which have no fees: