Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you might get a brand new student loan servicer.
Here’s what you have to know.
nelnet and Great Lakes, which are a part of the very same business and jointly service federal pupil loans for approximately 13 million pupil loan borrowers, might 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 enhance pupil loan servicing. What is a pupil loan servicer? Whenever you pay out federal student loans, you do not spend 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 support.
This is another key step toward the dedication of ours to improving customer care and holding our contractors accountable for the performance of theirs, DeVos said. Students, parents, borrowers, and schools deserve a world-class experience when dealing with [Federal Student Aid], and I’m confident that FSA has hired the organizations with the know how, expertise and experience 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 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 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 wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new plan, you may begin making student loan payments by way of a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer sites. DeVos believes the present pupil loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are shocked We are surprised that the two highest rated servicers as well as the dedicated personnel that are liable for getting those rankings will not be looked at by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this selection of transparency in the process and can engage in every legitimate avenue available to make sure that pupils 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 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 schooling as well as consumer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or even Great Lakes service your federal pupil loans:
Keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You don’t have to apply for the latest pupil loan servicer.
The Education Department is going to assign you a new student 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 driving student loan payments to your new student loan servicer.
Once that happens, be sure to update auto payments.
How to pay off pupil loans more quickly If you’ve student loans, ensure to end up with a game plan. What is the simplest way to pay off student loans quicker? Start with these 4 options, each one of which have no fees: