Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
When Nelnet or perhaps Great Lakes service the federal student loans of yours, you may get a new student loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are actually a part of the same company and together service federal pupil loans for approximately thirteen million student loan borrowers, could very well 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 improve student loan servicing. What is a student loan servicer? When you pay federal student loans, you do not pay the federal government or maybe Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and provides customer support.
This’s another major 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, and schools deserve a world class encounter when addressing [Federal Student Aid], and I’m confident that FSA has hired the organizations with the expertise, 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 more than 68 million students across 5,800 postsecondary institutions each year – contracts that are signed with five pupil loan servicers to service federal pupil loans as well as provide 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 pupil loan repayment. Underneath DeVos’ brand new strategy, you might start making student loan payments through a centralized platform, studentaid.gov, instead of through the individual student loan servicer websites. DeVos believes the present student loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re surprised We are shocked that the 2 highest rated servicers and also the committed personnel that are responsible for achieving those rankings will not be considered by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the lack and this choice of transparency in the process and can pursue every legal avenue available to make sure that students have the premium quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers under its contract, 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 2 optional six month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers which are not influenced by the Education Department’s decision.
The thing you need to do next
When Nelnet or even Great Lakes service your federal student loans:
Always keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not need to apply for a brand new student loan servicer.
The Education Department will assign you a brand new student loan servicer and will speak with you in advance of any change.
As soon as you’re informed of your brand new pupil loan servicer, you’ll be able to start sending student loan payments to your new pupil loan servicer.
When that happens, make sure to update auto payments.
How you can pay off student loans faster If you have pupil loans, make sure to use a game plan. What is the simplest way to pay off student loans faster? Begin with these 4 options, all of which have no fees: