Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or Great Lakes service the federal student loans of yours, you may get a brand new student loan servicer.
Here’s what you need to know.
Great Lakes and nelnet, which are actually part of the very same company and collectively service federal pupil loans for approximately thirteen million student loan borrowers, could perhaps not 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 is a pupil loan servicer? Whenever you spend federal student loans, you do not pay the federal government or perhaps Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and supplies customer care.
This’s another major step toward the dedication of ours to improving customer care and holding the contractors of ours accountable for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class experience when dealing with [Federal Student Aid], and I am confident that FSA has hired the organizations with the knowledge, experience and expertise to deliver that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to more than sixty eight million pupils across 5,800 postsecondary institutions annually – contracts which are signed with five student loan servicers to service federal pupil loans and give 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 as well as simplify pupil loan repayment. Underneath DeVos’ brand new plan, you may start making student loan payments by way of a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer sites. DeVos believes the current student loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are surprised We’re surprised that the 2 highest rated servicers as well as the dedicated personnel that are accountable for getting those rankings will not looked into by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the absence and this decision of transparency in the task and can pursue every legitimate avenue readily available to ensure that students 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 thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below the contract of its, 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 14, 2020 with 2 optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling as well as customer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
The thing you need to do next
If Nelnet or Great Lakes service your federal student loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not have to apply for a brand new student loan servicer.
The Education Department will assign you a new pupil loan servicer and will speak with you in advance of any change.
As soon as you are informed of your new student loan servicer, you’ll be able to begin sending pupil loan payments to your new student loan servicer.
Once that happens, make sure to update car payments.
How to pay off pupil loans more rapidly If you have student loans, make sure to end up with a game plan. What’s the simplest way to pay off student loans faster? Begin with these four options, every one of which have no fees: