Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you might get a 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 collectively service federal student loans for around 13 million pupil loan borrowers, could very well not anymore 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 enhance pupil loan servicing. What is a pupil loan servicer? When you pay federal student loans, you don’t spend the federal government or Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and provides customer service.
This is another key step toward the dedication of ours to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class encounter when addressing [Federal Student Aid], and I am confident that FSA has hired the businesses with the knowledge, expertise and experience to deliver that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to greater than 68 million students across 5,800 postsecondary institutions annually – signed contracts with 5 student loan servicers to service federal student 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 Student Loan Corporation (Trellis Company)
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DeVos wishes to streamline and simplify student loan repayment. Under DeVos’ brand new strategy, you may begin making student loan payments through a centralized platform, studentaid.gov, rather than through the unique student loan servicer sites. DeVos believes the present pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are surprised We’re 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 due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the absence and this choice of transparency in the task and will pursue every legal avenue readily available to make sure 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 thirty one, 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 14, 2020 with two optional six month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or perhaps Great Lakes service your federal pupil loans:
Always keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You don’t have to use for a new pupil loan servicer.
The Education Department will assign you a brand new student loan servicer and can communicate with you in advance of any transition.
As soon as you are informed of your new pupil loan servicer, you’ll be able to start driving pupil loan payments to your new pupil loan servicer.
Once that happens, ensure to update car payments.
How you can pay off student loans faster If you’ve pupil loans, ensure to end up with a game plan. What’s the simplest way to pay off pupil loans faster? Begin with these four options, all of which have no fees: