Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a whole new pupil loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are actually a component of the same business and collectively service federal pupil loans for around thirteen million pupil loan borrowers, may very well 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’s a student loan servicer? If you pay out federal student loans, you do not spend the federal government or perhaps Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and provides customer care.
This’s another major step toward our commitment to improving customer care and holding our contractors responsible for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world-class encounter when dealing with [Federal Student Aid], and I am confident that FSA has employed the businesses with the knowledge, expertise and experience to provide 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 greater than 68 million pupils across 5,800 postsecondary institutions per year – contracts which are signed with 5 pupil 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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What you should Know About Your Student Loan Servicer
DeVos wishes to streamline and simplify pupil loan repayment. Under DeVos’ brand new plan, you could start making student loan payments through a centralized platform, studentaid.gov, rather than through the unique student loan servicer websites. DeVos thinks the current student loan servicing system lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are surprised We are shocked that the two highest rated servicers as well as the committed personnel that are liable for obtaining those rankings won’t looked into by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this selection of transparency in the process and can 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 pupil loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, and Lakes that are Great 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 fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
What you should do next
If Nelnet or perhaps Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not need to apply for a brand new pupil loan servicer.
The Education Department will assign you a brand new pupil loan servicer and will speak with you in advance of any transition.
As soon as you are informed of your new student loan servicer, you can start driving pupil loan payments to your new student loan servicer.
Once that happens, ensure to update auto payments.
How you can pay off pupil loans more rapidly If you have pupil loans, be sure to use a game plan. What’s the simplest way to pay off pupil loans quicker? Begin with these four options, all of which have no fees: