Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service your federal student loans, you might get a brand new student loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are part of the very same company and together service federal student loans for approximately thirteen million student loan borrowers, might 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 boost student loan servicing. What is a pupil loan servicer? If you pay out federal student loans, you do not spend the federal government or perhaps Department of Education directly. Rather, you pay the student loan servicer of yours, which collects the student loan payments of yours and offers customer service.
This’s another major step toward the commitment of ours to improving customer service and holding our contractors responsible for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class encounter when dealing with [Federal Pupil Aid], and I am confident that FSA has hired the businesses with the know how, experience and expertise to provide 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 sixty eight million pupils across 5,800 postsecondary institutions every year – signed contracts with 5 pupil loan servicers to service federal pupil loans and also 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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What to Know About Your Pupil Loan Servicer
DeVos would like to streamline and simplify pupil loan repayment. Under DeVos’ new plan, you may begin making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the individual student loan servicer websites. DeVos believes the present student loan servicing platform lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are shocked We are shocked that the 2 highest rated servicers and also the committed personnel that are responsible for obtaining those rankings will not be looked at by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this decision and the lack of transparency in the task and can pursue every legitimate avenue available to ensure that pupils have the high quality service they have 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 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 14, 2020 with 2 optional six month extensions through December fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or even Great Lakes service your federal pupil loans:
Always keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You don’t need to use for a brand new pupil loan servicer.
The Education Department will assign you a brand new pupil loan servicer and can speak with you in advance of any transition.
Once you’re informed of your brand new pupil loan servicer, you’ll be able to start driving pupil loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update auto payments.
How you can pay off student loans more quickly If you have student loans, ensure to end up with a game plan. What’s the best way to pay off pupil loans quicker? Begin with these four options, each one of which have no fees: