Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are a component of the very same company and together service federal student loans for approximately thirteen million pupil loan borrowers, could very well 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 pupil loan servicer? If you spend federal student loans, you do not pay the federal government or maybe Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and supplies customer service.
This’s another major step toward our commitment to improving customer care and holding our contractors accountable for their performance, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world-class experience when managing [Federal Pupil Aid], and I am confident that FSA has hired the organizations with the expertise, experience and expertise to provide that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions each year – contracts that are signed with five student loan servicers to service federal pupil loans and give 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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Things to Know About Your Student Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Under DeVos’ new strategy, you could begin making student loan payments via a centralized platform, studentaid.gov, instead of through the unique pupil loan servicer sites. DeVos believes the current pupil loan servicing structure lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We’re shocked We are surprised that the two highest rated servicers as well as the dedicated employees who are liable for achieving those rankings won’t be considered by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this selection and the absence of transparency in the task and can engage in every legitimate avenue readily available to make sure that pupils have the good quality service they have 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 student loans for 5.5 million borrowers below the contract of its, and Lakes which 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 2 optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training and consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
What you need to do next
If Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not need to use for the latest student loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and can communicate with you in advance of any change.
After you are informed of your new student loan servicer, you’ll be able to begin sending pupil loan payments to your new student loan servicer.
Once that happens, ensure to update auto payments.
How you can pay off pupil loans more rapidly If you’ve student loans, make sure to use a game plan. What’s the best way to pay off pupil loans quicker? Begin with these 4 options, all of which have no fees: