Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service your federal student loans, you might get a new student loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are part of the very same business and together service federal pupil loans for around 13 million pupil loan borrowers, may 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 enhance pupil loan servicing. What is a student loan servicer? If you pay federal student loans, you do not 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 care.
This is another key step toward the dedication of ours to improving customer care and holding our contractors responsible for their performance, DeVos said. Pupils, parents, borrowers, and schools deserve a world-class encounter when dealing with [Federal Pupil Aid], and I’m confident that FSA has hired the businesses with the expertise, expertise and experience to give 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 – contracts that are signed with five student loan servicers to service federal pupil loans and give enhanced consumer 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 wants to streamline and simplify student loan repayment. Underneath DeVos’ new plan, you may start making student loan payments through a centralized platform, studentaid.gov, instead of through the individual student loan servicer websites. DeVos believes the current pupil loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are surprised We’re surprised that the two highest rated servicers and also the committed personnel who are liable for achieving those rankings won’t be looked at by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this decision and the lack of transparency in the task and can pursue every legitimate avenue readily available to ensure 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 pupil loans for 5.5 million borrowers below its contract, and Lakes which are Great was servicing $243.2 billion of student 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. Individually, Nelnet services $48.7 billion in FFELP, private education and consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or even 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 do not have to apply for a new student loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and will get in touch with you in advance of any change.
Once you are informed of your brand new pupil loan servicer, you’ll be able to start driving student loan payments to your new student loan servicer.
When that happens, ensure to update auto payments.
How to pay off pupil loans more quickly If you have pupil loans, make sure to end up with a game plan. What is the simplest way to pay off student loans faster? Start with these 4 options, all of which have no fees: