Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
When Nelnet or perhaps Great Lakes service your federal student loans, you might get a new pupil loan servicer.
Here’s what you need to know.
nelnet and Great Lakes, which are actually part of the same company and jointly service federal pupil loans for around thirteen million student loan borrowers, may 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 pupil loan servicing. What’s a pupil loan servicer? If you spend federal student loans, you don’t pay the federal government or perhaps Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and provides customer care.
This is another major step toward the dedication 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 dealing with [Federal Pupil Aid], and I am confident that FSA has hired the companies with the knowledge, expertise and experience to deliver 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 greater than sixty eight million pupils across 5,800 postsecondary institutions annually – signed contracts with five student loan servicers to service federal pupil loans as well as 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 pupil loan repayment. Underneath DeVos’ brand new plan, you could begin making student loan payments through a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer websites. DeVos feels the current pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We are shocked that the 2 highest rated servicers as well as the dedicated personnel that are accountable for achieving those rankings won’t be looked at by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this decision and the absence of transparency in the task and will pursue every legitimate avenue available to ensure that students have the premium quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet student loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, and Great Lakes was servicing $243.2 billion of student 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 education as well as customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you must do next
If Nelnet or even Great Lakes service your federal pupil loans:
Always keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t 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 new pupil loan servicer, you can begin driving pupil loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How to pay off student loans more quickly If you’ve pupil loans, make sure to end up with a game plan. What’s the best way to pay off pupil loans faster? Begin with these four options, each one of which have no fees: