Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or even Great Lakes service the federal student loans of yours, you might get a new pupil loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are a component of the same company and jointly service federal student loans for approximately thirteen million pupil loan borrowers, may 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 boost student loan servicing. What’s a student loan servicer? Whenever you spend federal student loans, you do not spend the federal government or perhaps Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and supplies customer service.
This’s another key step toward the commitment of ours to improving customer support and holding our contractors responsible for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class experience when addressing [Federal Pupil Aid], and I am confident that FSA has employed the businesses with the expertise, experience and expertise 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 68 million pupils across 5,800 postsecondary institutions yearly – contracts which are signed with five pupil loan servicers to service federal student loans and also deliver enhanced consumer support:
Edfinancial Services LLC
F.H. Cann & Associates LLC
MAXIMUS Federal Services Inc.
Missouri Higher Education Loan Authority (MOHELA)
Texas Guaranteed Student Loan Corporation (Trellis Company)
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What to Know About Your Student Loan Servicer
DeVos wishes to streamline as well as simplify pupil loan repayment. Under DeVos’ brand new plan, you could begin making student loan payments via a centralized platform, studentaid.gov, instead of through the unique student loan servicer websites. DeVos believes the present student loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re shocked We are shocked that the 2 highest rated servicers and the dedicated personnel that are liable for getting those rankings will not looked into by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the absence and this decision of transparency in the task and often will engage in every legal avenue available to ensure 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 thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, and Lakes which are Great was servicing $243.2 billion of student 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 as well as consumer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
The thing you need to do next
When Nelnet or perhaps Great Lakes service your federal pupil loans:
Keep making your regular monthly student loan payments to Great Lakes or Nelnet.
You don’t have to apply for the latest student loan servicer.
The Education Department is going to assign you a new student loan servicer and will communicate with you in advance of any change.
After you’re informed of your new pupil loan servicer, you’ll be able to start sending student loan payments to your new pupil loan servicer.
Once that happens, make sure to update car payments.
How to pay off student loans more rapidly If you have student loans, ensure to use a game plan. What’s the simplest way to pay off student loans faster? Begin with these 4 options, all of which have no fees: