Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you may get a brand new pupil loan servicer.
Here’s what you have to know.
nelnet and Great Lakes, which are a part of the very same business and together service federal student loans for around thirteen million student loan borrowers, may easily not 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 improve student loan servicing. What is a pupil loan servicer? If you pay federal student loans, you don’t spend 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 supplies customer service.
This is another key step toward the dedication of ours to improving customer support and holding our contractors accountable for the performance of theirs, 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 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 more than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions every year – signed contracts with 5 student loan servicers to service federal pupil loans and also give enhanced consumer 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 student loan repayment. Under DeVos’ new strategy, you might begin making student loan payments through a centralized platform, studentaid.gov, rather than through the individual student loan servicer sites. DeVos feels the current pupil loan servicing platform lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re shocked We are shocked that the two highest rated servicers and also the committed employees who are liable for obtaining those rankings won’t be considered by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this selection of transparency in the process and often will engage in every legal avenue available to make sure that students have the premium 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 student loans for 5.5 million borrowers under its contract, and Lakes which 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 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling and consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
The thing you need to do next
When Nelnet or Great Lakes service your federal student loans:
Do not panic.
Always keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not have to apply for a new pupil loan servicer.
The Education Department will assign you a brand new student loan servicer and often will speak with you in advance of any change.
As soon as you are informed of your brand new pupil loan servicer, you’ll be able to start sending student loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How you can pay off pupil loans more rapidly If you’ve pupil loans, make sure to have a game plan. What’s the simplest way to pay off pupil loans quicker? Start with these four options, every one of which have no fees: