Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
When Nelnet or Great Lakes service the federal student loans of yours, you may get a whole new pupil loan servicer.
Here’s what you need to know.
Great Lakes and nelnet, which are a part of the same business and collectively service federal pupil loans for around thirteen million pupil loan borrowers, could not 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 boost pupil loan servicing. What’s a student loan servicer? When you spend federal student loans, you don’t pay the federal government or Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and offers customer service.
This is another key step toward the dedication of ours to improving customer support and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class encounter when dealing with [Federal Pupil Aid], and I’m confident that FSA has employed the companies with the know how, expertise and experience to provide that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to greater than 68 million students across 5,800 postsecondary institutions per year – signed contracts with 5 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 to Know About Your Pupil Loan Servicer
DeVos wishes to streamline and simplify pupil loan repayment. Underneath DeVos’ brand new plan, you might start making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer websites. DeVos feels the current pupil loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are surprised We’re shocked that the 2 highest rated servicers and also the committed personnel who are liable for obtaining those rankings won’t be considered by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by this choice and the lack of transparency in the process and can pursue every legitimate avenue available to make sure that pupils 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 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, and Great Lakes 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 2 optional six month extensions through December fourteen, 2021. Individually, 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 need to do next
When Nelnet or perhaps Great Lakes service your federal student loans:
Always keep making your regular monthly student loan payments to Nelnet or even Great Lakes.
You don’t have to apply for a new student 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 new student loan servicer, you’ll be able to begin driving student loan payments to your new student loan servicer.
Once that happens, ensure to update auto payments.
How to pay off student loans faster If you’ve pupil loans, be sure to have a game plan. What’s the best way to pay off pupil loans faster? Start with these four options, all of which have no fees: