Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
If Nelnet or Great Lakes service the federal student loans of yours, you might get a brand new pupil loan servicer.
Here is what you have to know.
nelnet and Great Lakes, which are a component of the very same company and together service federal pupil loans for around thirteen million pupil loan borrowers, could perhaps no longer 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 pupil loan servicing. What is a student loan servicer? If you spend federal student loans, you don’t pay the federal government or maybe Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and supplies customer care.
This’s another key step toward our commitment to improving customer support and holding our contractors accountable for their performance, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world-class encounter when managing [Federal Pupil Aid], and I am confident that FSA has hired the companies with the expertise, experience and expertise to give that.
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On June 24, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions yearly – signed contracts with 5 student loan servicers to service federal student 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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What to Know About Your Student Loan Servicer
DeVos would like to streamline as well as simplify student loan repayment. Underneath DeVos’ new plan, you could start making student loan payments through a centralized platform, studentaid.gov, instead of through the unique student loan servicer sites. DeVos believes the current student loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We’re surprised that the 2 highest rated servicers as well as the committed employees that are liable for getting those rankings won’t be considered by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this selection of transparency in the process and will pursue every legitimate avenue readily available to ensure 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 that are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December fourteen, 2020 with two optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as consumer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
What you should do next
If Nelnet or Great Lakes service your federal pupil loans:
Do not panic.
Always 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 brand new student loan servicer and will communicate with you in advance of any change.
After you are informed of your new student loan servicer, you can begin sending student loan payments to your new student loan servicer.
Once that happens, be sure to update car payments.
How you can pay off student loans more quickly If you have student loans, make sure to have a game plan. What is the best way to pay off pupil loans quicker? Start with these 4 options, every one of which have no fees: