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 may get a brand new pupil loan servicer.
Here’s what you need to know.
nelnet and Great Lakes, which are actually a component of the same company and collectively service federal pupil loans for approximately thirteen million student loan borrowers, can easily 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 improve student loan servicing. What is a student loan servicer? If you pay out federal student loans, you don’t spend the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects the student loan payments of yours and provides customer care.
This’s another major step toward our commitment to improving customer support and holding our contractors accountable 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 hired the companies with the expertise, experience and expertise to deliver 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 student loans and deliver 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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What you should Know About Your Student Loan Servicer
DeVos wishes to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you may begin making student loan payments by way of a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer sites. DeVos feels the current student loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We’re surprised that the two highest rated servicers and the dedicated employees who are liable for obtaining those rankings won’t looked into by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this selection and the lack of transparency in the process and often will pursue every legitimate avenue available to ensure that students have the good quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet student loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, 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 14, 2020 with 2 optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training and consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
What you should do next
If Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Keep making your regular monthly student loan payments to Great Lakes or even Nelnet.
You do not have to apply for a brand new pupil loan servicer.
The Education Department is going to assign you a brand new student loan servicer and will communicate with you in advance of any change.
As soon as you are informed of your new pupil loan servicer, you can begin sending student loan payments to your new pupil loan servicer.
As soon as that happens, be sure to update auto payments.
How to pay off pupil loans faster If you have student loans, make sure to have a game plan. What’s the easiest way to pay off pupil loans quicker? Start with these four options, each one of which have no fees: