Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or even Great Lakes service your federal student loans, you may get a whole new pupil loan servicer.
Here’s what you need to understand.
nelnet and Great Lakes, which are actually part of the very same company and jointly service federal pupil loans for approximately 13 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? If you pay out federal student loans, you do not spend 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 provides customer care.
This is another major step toward the commitment of ours to improving customer support and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world class experience when addressing [Federal Pupil Aid], and I’m confident that FSA has hired the businesses with the expertise, expertise and experience to deliver 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 annually – contracts which are signed with 5 student loan servicers to service federal pupil loans as well as 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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DeVos wishes to streamline as well as simplify student loan repayment. Under DeVos’ new strategy, you may begin making student loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer websites. DeVos thinks the present pupil loan servicing platform lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re surprised We’re surprised that the 2 highest rated servicers and the committed employees who are liable for achieving those rankings will not looked into by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this selection and the absence of transparency in the process and can engage in every legal 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 thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below its contract, and Great Lakes 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 two optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling as well as customer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or perhaps Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Great Lakes or even Nelnet.
You don’t need to apply for a new pupil loan servicer.
The Education Department will assign you a brand new student loan servicer and often will communicate with you in advance of any transition.
Once you are informed of your brand new pupil loan servicer, you’ll be able to start driving pupil 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 have student loans, ensure to use a game plan. What’s the easiest way to pay off student loans faster? Begin with these four options, each one of which have no fees: