Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here’s what you have to understand.
Great Lakes and nelnet, which are actually a part of the very same company and collectively service federal pupil loans for around thirteen million student loan borrowers, can easily 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 student loan servicer? Whenever you pay federal student loans, you don’t spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and provides customer care.
This’s another key step toward the commitment of ours to improving customer care and holding the contractors of ours responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world-class encounter when dealing with [Federal Pupil Aid], and I’m confident that FSA has hired the organizations with the expertise, experience and expertise to deliver that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to greater than 68 million students across 5,800 postsecondary institutions per year – signed contracts with five pupil loan servicers to service federal pupil loans and also deliver enhanced customer 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 Student Loan Servicer
DeVos wishes to streamline and simplify pupil loan repayment. Under DeVos’ brand new plan, you may start making pupil loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer sites. DeVos thinks the current student loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re surprised We are shocked that the two highest rated servicers as well as the dedicated personnel who are liable for obtaining those rankings will not be looked at by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by this selection and the lack of transparency in the task and can pursue every legitimate avenue readily available to make sure that pupils have the high 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 under the contract of its, and Great Lakes 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 consumer loans for 2.1 million borrowers which 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 Nelnet or even Great Lakes.
You don’t need to apply for a brand new student loan servicer.
The Education Department is going to assign you a new student loan servicer and often will get in touch with you in advance of any change.
After you’re informed of your brand new pupil loan servicer, you can start driving student loan payments to your new pupil loan servicer.
As soon as that happens, ensure to update auto payments.
How to pay off pupil loans more rapidly If you have student loans, ensure to have a game plan. What’s the best way to pay off pupil loans faster? Start with these 4 options, every one of which have no fees: