Nelnet And Great Lakes Won’t Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you may get a new student loan servicer.
Here is what you need to understand.
nelnet and Great Lakes, which are actually part of the same company and together service federal pupil loans for approximately thirteen million student loan borrowers, can easily 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 boost student loan servicing. What is a pupil loan servicer? When you pay federal student loans, you do not pay the federal government or maybe Department of Education directly. Instead, you pay the student loan servicer of yours, which collects your student loan payments and offers customer service.
This is another major step toward the commitment of ours to improving customer care and holding the contractors of ours responsible for their performance, DeVos said. Students, parents, borrowers, along with schools deserve a world-class experience when managing [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the knowledge, 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 greater than sixty eight million pupils across 5,800 postsecondary institutions each year – contracts that are signed with five student loan servicers to service federal student loans and also 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 Student Loan Servicer
DeVos wishes to streamline and simplify student loan repayment. Under DeVos’ brand new strategy, you might start making pupil loan payments by way of a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer websites. DeVos feels the current pupil loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are shocked We’re surprised that the two highest rated servicers and also the dedicated personnel that are liable for getting those rankings will not looked into by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this selection and the lack of transparency in the task and often will pursue every legitimate avenue readily available to ensure that students have the good quality service they’ve 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 the contract of its, 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 14, 2020 with 2 optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling and consumer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
What you should do next
When Nelnet or even Great Lakes service your federal student loans:
Always keep making your regular monthly pupil loan payments to Great Lakes or perhaps Nelnet.
You do not have to apply for a brand new student loan servicer.
The Education Department will assign you a brand new pupil loan servicer and often will speak with you in advance of any change.
Once you’re informed of your brand new pupil loan servicer, you’ll be able to begin sending pupil loan payments to your new pupil loan servicer.
When that happens, be sure to update car payments.
How to pay off student loans more rapidly If you’ve pupil loans, be sure to use a game plan. What’s the best way to pay off pupil loans faster? Start with these 4 options, all of which have no fees: