Nelnet And Great Lakes Won’t Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service your federal student loans, you may get a brand new student loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are actually part of the same company and jointly service federal student loans for around thirteen million pupil loan borrowers, could very well no longer 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 student loan servicer? Whenever you pay federal student loans, you don’t pay the federal government or perhaps Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and provides customer support.
This is another key step toward our dedication to improving customer service and holding the contractors of ours responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, and schools deserve a world-class encounter when addressing [Federal Student Aid], and I am confident that FSA has employed the organizations with the knowledge, experience and expertise to give 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 sixty eight million students across 5,800 postsecondary institutions each year – contracts which are signed with 5 pupil loan servicers to service federal pupil loans as well as give 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 you should Know About Your Pupil Loan Servicer
DeVos wants to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you could start making pupil loan payments through a centralized platform, studentaid.gov, instead of through the unique student loan servicer websites. DeVos feels the present student loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are shocked We’re shocked that the 2 highest rated servicers and the committed personnel who are accountable for achieving those rankings will not be looked at by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the absence and this choice of transparency in the process and will pursue every legal avenue readily available to make sure that pupils 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 below 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 two optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as consumer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you need to do next
When Nelnet or even Great Lakes service your federal student loans:
Keep making your regular monthly pupil loan payments to Nelnet or even Great Lakes.
You don’t need to apply for a new student loan servicer.
The Education Department is going to assign you a new pupil loan servicer and will get in touch with you in advance of any change.
After you’re informed of your new pupil loan servicer, you’ll be able to start driving student loan payments to your new student loan servicer.
Once that happens, be sure to update auto payments.
How you can pay off pupil loans faster If you’ve student loans, make sure to end up with a game plan. What is the simplest way to pay off student loans faster? Start with these four options, every one of which have no fees: