Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or Great Lakes service your federal student loans, you may get a brand new student loan servicer.
Here is what you have to know.
Great Lakes and nelnet, which are a part of the same business and together service federal student loans for approximately thirteen million pupil loan borrowers, could 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 enhance pupil loan servicing. What’s a pupil loan servicer? If you spend federal student loans, you do not spend the federal government or perhaps Department of Education directly. Instead, you pay the student loan servicer of yours, which collects your student loan payments and provides customer support.
This is another major step toward the commitment of ours to improving customer service and holding the contractors of ours responsible for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class encounter when addressing [Federal Student Aid], and I am confident that FSA has hired the organizations with the expertise, expertise and experience to provide 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 students across 5,800 postsecondary institutions per year – signed contracts 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 Student Loan Corporation (Trellis Company)
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What you should Know About Your Student Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ new plan, you could start making pupil loan payments via a centralized platform, studentaid.gov, as opposed to through the individual student loan servicer websites. DeVos thinks the current pupil loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re shocked We are surprised that the 2 highest rated servicers and also the committed personnel who are accountable for getting those rankings won’t looked into by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this choice of transparency in the process and often will engage in every legitimate avenue readily available to ensure that pupils have the good quality service they’ve 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 pupil loans for 5.5 million borrowers below its contract, 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. Separately, Nelnet services $48.7 billion in FFELP, private education as well as customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Nelnet or perhaps Great Lakes.
You do not have to use for the latest pupil loan servicer.
The Education Department will assign you a new student loan servicer and can speak with you in advance of any change.
Once you’re informed of your brand new student loan servicer, you can start driving student loan payments to your new student loan servicer.
Once that happens, be sure to update auto payments.
How you can pay off pupil loans more quickly If you have pupil loans, make sure to end up with a game plan. What is the simplest way to pay off pupil loans quicker? Begin with these 4 options, all of which have no fees: