Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service your federal student loans, you might get a whole new pupil loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are actually a component of the very same company and collectively service federal student loans for around thirteen million pupil loan borrowers, may very well not anymore 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 pupil loan servicing. What’s a student loan servicer? If you spend federal student loans, you don’t spend the federal government or perhaps Department of Education directly. Rather, 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, as well as schools deserve a world class encounter when dealing with [Federal Student 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 24, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions annually – contracts which are signed with five 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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Things to Know About Your Pupil Loan Servicer
DeVos wants to streamline and simplify student loan repayment. Underneath DeVos’ new strategy, you may start making pupil loan payments through a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer sites. DeVos feels the present pupil loan servicing platform lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We are surprised We’re surprised that the two highest rated servicers as well as the committed employees who are responsible for obtaining those rankings won’t looked into by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this choice and the absence of transparency in the task and will engage in every legitimate avenue readily available to ensure 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 thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below the contract of its, and Great Lakes 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 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you should do next
If Nelnet or even Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Nelnet or even Great Lakes.
You do not need to use for the latest student loan servicer.
The Education Department will assign you a new pupil loan servicer and will communicate with you in advance of any transition.
Once you’re informed of your brand new student loan servicer, you’ll be able to begin driving pupil loan payments to your new pupil loan servicer.
Once that happens, ensure to update auto payments.
How to pay off pupil loans faster If you have student loans, make sure to use a game plan. What’s the easiest way to pay off pupil loans quicker? Begin with these 4 options, each one of which have no fees: