Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you may get a whole new pupil loan servicer.
Here is what you need to know.
Great Lakes and nelnet, which are actually part of the same company and together service federal student loans for approximately thirteen million pupil loan borrowers, may very well no longer 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 student loan servicing. What is a pupil loan servicer? If you pay federal student loans, you do not spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and offers customer support.
This’s another major step toward our dedication to improving customer care and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, along with schools deserve a world class experience when addressing [Federal Pupil Aid], and I am confident that FSA has hired the companies with the expertise, expertise and experience to deliver that.
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On June twenty four, 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 each year – signed contracts with five student loan servicers to service federal pupil loans and 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 Pupil Loan Servicer
DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ brand new strategy, you may begin making pupil loan payments by way of a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer sites. DeVos believes the current pupil loan servicing system lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are surprised We’re shocked that the two highest rated servicers as well as the dedicated employees who are responsible for getting those rankings will not be considered by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this decision and the absence of transparency in the process and can pursue every legitimate 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 student loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of pupil 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 contract. 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 and customer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
What you should do next
When Nelnet or Great Lakes service your federal student loans:
Keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not have to apply for a new student loan servicer.
The Education Department will assign you a new pupil loan servicer and often will communicate with you in advance of any change.
Once you’re informed of your brand new student loan servicer, you can begin driving pupil loan payments to your new student loan servicer.
When that happens, ensure to update car payments.
How to pay off pupil loans faster If you have pupil loans, make sure to have a game plan. What’s the simplest way to pay off pupil loans faster? Begin with these four options, each one of which have no fees: