Nelnet And Great Lakes Will no longer 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 have to understand.
Great Lakes and nelnet, which are part of the very same company and together service federal pupil loans for approximately 13 million pupil loan borrowers, may 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 boost student loan servicing. What is a student loan servicer? Whenever you pay out federal student loans, you don’t pay the federal government or maybe Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and provides customer service.
This’s another key step toward our dedication 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 managing [Federal Student Aid], and I’m confident that FSA has hired the companies with the expertise, expertise and experience to deliver that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions each year – signed contracts with five pupil loan servicers to service federal student loans and 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 you should Know About Your Pupil Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ new plan, you may begin making student loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos feels the current pupil loan servicing structure lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We are surprised We are shocked that the two highest rated servicers and also the dedicated employees that are liable for getting those rankings won’t looked into by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the lack and this selection of transparency in the task and will engage in every legal avenue 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 pupil loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below the contract of its, and Lakes that are Great was servicing $243.2 billion of student 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 schooling as well as consumer loans for 2.1 million borrowers which are not 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:
Always keep making your regular monthly pupil loan payments to Nelnet or perhaps Great Lakes.
You do not have to use for the latest pupil loan servicer.
The Education Department is going to assign you a brand new student loan servicer and will speak with you in advance of any change.
As soon as you’re informed of your new student loan servicer, you’ll be able to begin driving pupil loan payments to your new pupil loan servicer.
When that happens, be sure to update auto payments.
How you can pay off student loans more rapidly If you’ve pupil loans, ensure to use a game plan. What’s the best way to pay off pupil loans quicker? Begin with these four options, every one of which have no fees: