Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or Great Lakes service your federal student loans, you may get a brand new student loan servicer.
Here is what you need to understand.
Great Lakes and nelnet, which are actually a component of the very same company and jointly service federal student loans for around thirteen million pupil loan borrowers, could very well 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 boost student loan servicing. What is a student loan servicer? If you pay federal student loans, you do not spend the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and provides customer support.
This is another key 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, along with schools deserve a world-class experience when dealing with [Federal Student 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 twenty four, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions each year – signed contracts with 5 student loan servicers to service federal pupil loans and also deliver 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 would like to streamline and simplify student loan repayment. Under DeVos’ brand new plan, you might start making student loan payments via a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer websites. DeVos believes the present pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We’re surprised that the two highest rated servicers and the committed employees that 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 choice and the lack of transparency in the task and often will engage in every legal avenue readily available to ensure that pupils have the high quality service they’ve 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 Lakes that 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 fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training and consumer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.
The thing you need to do next
If Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t have to use for a new student loan servicer.
The Education Department is going to assign you a new student loan servicer and can speak with you in advance of any change.
As soon as you’re informed of your brand new student loan servicer, you’ll be able to begin sending pupil loan payments to your new student loan servicer.
Once that happens, ensure to update car payments.
How to pay off pupil loans faster If you’ve pupil loans, make sure to end up with a game plan. What is the easiest way to pay off pupil loans quicker? Begin with these four options, each one of which have no fees: