Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you may get a whole new pupil loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are a part of the same business and jointly service federal student loans for approximately thirteen million student loan borrowers, could very well not anymore 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 pupil loan servicing. What’s a pupil loan servicer? Whenever you pay federal student loans, you don’t spend the federal government or Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and offers customer support.
This’s another key step toward our dedication to improving customer service and holding the contractors of ours responsible for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world-class experience when addressing [Federal Pupil Aid], and I am confident that FSA has hired the companies with the know how, expertise and experience to deliver that.
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On June 24, 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 annually – signed contracts with five pupil loan servicers to service federal student loans and also 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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What you should Know About Your Student 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 individual student loan servicer websites. DeVos thinks the present pupil loan servicing system lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re shocked We’re shocked that the two highest rated servicers and also the committed personnel that are accountable for getting those rankings won’t looked into by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the absence and this selection of transparency in the task and often will pursue every legitimate avenue readily available to ensure that students have the high 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 student loans for 5.5 million borrowers below its contract, 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 two optional six month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private education and customer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
What you need to do next
When Nelnet or Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly student loan payments to Nelnet or even Great Lakes.
You don’t need to use for a new pupil loan servicer.
The Education Department is going to assign you a new pupil loan servicer and often will communicate with you in advance of any change.
Once you’re informed of your new student loan servicer, you’ll be able to start driving student loan payments to your new pupil loan servicer.
As soon as that happens, be sure to update car payments.
How you can pay off pupil loans faster If you’ve pupil loans, ensure to use a game plan. What is the simplest way to pay off pupil loans quicker? Start with these 4 options, each one of which have no fees: