Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or even Great Lakes service your federal student loans, you may get a brand new student loan servicer.
Here is what you have to know.
Great Lakes and nelnet, which are actually part of the very same business and together service federal student loans for approximately thirteen million student loan borrowers, might 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 is a student loan servicer? When you pay federal student loans, you do not spend the federal government or perhaps Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and offers customer support.
This’s another key step toward our dedication to improving customer care and holding our contractors responsible for the performance of theirs, DeVos said. Students, parents, borrowers, as well as schools deserve a world class experience when addressing [Federal Student Aid], and I’m confident that FSA has employed the organizations with the knowledge, expertise and experience to provide that.
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On June 24, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions each year – contracts which are signed with 5 student loan servicers to service federal student loans as well as give 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 to Know About Your Student Loan Servicer
DeVos wants to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new plan, you may begin making pupil loan payments by way of a centralized platform, studentaid.gov, instead of through the unique student loan servicer sites. DeVos feels the current student loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are surprised We are surprised that the 2 highest rated servicers as well as the dedicated personnel that are responsible for achieving those rankings will not looked into by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the lack and this decision of transparency in the process and can pursue every legal avenue available to make sure that pupils have the premium quality service they’ve 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 the contract of its, and Lakes that are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its contract. 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 schooling and customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
What you should do next
If Nelnet or Great Lakes service your federal pupil loans:
Keep making your regular monthly pupil loan payments to Nelnet or even Great Lakes.
You do not need to use for the latest student loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and often will speak with you in advance of any transition.
Once you are informed of your new student loan servicer, you’ll be able to start sending pupil loan payments to your new pupil loan servicer.
Once that happens, be sure to update car payments.
How you can pay off student loans faster If you’ve pupil loans, ensure to end up with a game plan. What’s the best way to pay off student loans faster? Start with these 4 options, each one of which have no fees: