Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or Great Lakes service the federal student loans of yours, you may get a brand new student loan servicer.
Here’s what you need to know.
Great Lakes and nelnet, which are part of the very same company and collectively service federal student loans for around 13 million pupil loan borrowers, can easily not service federal student loans after December 2020. The surprise announcement comes as the U.S. Department of Education, led by Education Secretary Betsy DeVos, seeks to enhance pupil loan servicing. What’s a pupil loan servicer? Whenever you pay out federal student loans, you don’t spend the federal government or Department of Education directly. Instead, you pay the student loan servicer of yours, which collects your student loan payments and provides customer service.
This is another major step toward the commitment of ours to improving customer care and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world-class encounter when addressing [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the expertise, expertise and experience to give that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions each year – contracts which are signed with five pupil loan servicers to service federal pupil loans and deliver enhanced customer 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 to Know About Your Pupil Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new strategy, you might begin making student loan payments via a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer websites. DeVos feels the present pupil loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We’re shocked that the two highest rated servicers and the dedicated employees who are liable for getting those rankings will not looked into by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the lack and this selection of transparency in the process and often will engage in every legitimate avenue readily available to ensure that students have the high quality service they have 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 student loans for 5.5 million borrowers below the contract of its, and Lakes that 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 2 optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
The thing you should do next
When Nelnet or even Great Lakes service your federal pupil loans:
Keep making your regular monthly student loan payments to Great Lakes or even Nelnet.
You don’t need to use for a new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and will communicate 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 student loan servicer.
When that happens, be sure to update car payments.
How you can pay off student loans more rapidly If you’ve student loans, be sure to use a game plan. What’s the best way to pay off pupil loans quicker? Begin with these 4 options, every one of which have no fees: