Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or perhaps Great Lakes service your federal student loans, you may get a whole new student loan servicer.
Here’s what you need to know.
Great Lakes and nelnet, which are a component of the very same business and jointly service federal student loans for approximately thirteen million student loan borrowers, may very well 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 boost student loan servicing. What is a student loan servicer? Whenever you pay out federal student loans, you don’t pay the federal government or perhaps Department of Education directly. Rather, you pay your student loan servicer, which collects the student loan payments of yours and offers customer service.
This’s another major step toward our dedication to improving customer support and holding the contractors of ours accountable for their performance, DeVos said. Pupils, parents, borrowers, along with schools deserve a world class experience when dealing with [Federal Pupil Aid], and I’m confident that FSA has employed the businesses with the knowledge, expertise and experience to give that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to more than sixty eight million pupils across 5,800 postsecondary institutions every year – contracts which are signed 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 Pupil Loan Corporation (Trellis Company)
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Things to Know About Your Student Loan Servicer
DeVos wants to streamline as well as simplify pupil loan repayment. Under DeVos’ brand new plan, you might begin making pupil loan payments by way of a centralized platform, studentaid.gov, rather than through the individual student loan servicer websites. DeVos thinks the present student loan servicing platform lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We are surprised We are shocked that the two highest rated servicers as well as the committed employees who are responsible for getting those rankings won’t looked into 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 task and can pursue every legal avenue readily 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 pupil loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers below its contract, and Lakes that are Great 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. Separately, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
The thing you should do next
When Nelnet or even Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You don’t need to use for the latest student loan servicer.
The Education Department is going to assign you a new pupil loan servicer and can get in touch with you in advance of any change.
After you are informed of your brand new student loan servicer, you’ll be able to start sending pupil loan payments to your new pupil loan servicer.
When that happens, make sure to update car payments.
How you can pay off student loans faster If you’ve pupil loans, be sure to have a game plan. What’s the simplest way to pay off pupil loans faster? Start with these 4 options, all of which have no fees: