Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
If Nelnet or even Great Lakes service the federal student loans of yours, you might get a whole new pupil loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are actually a component of the very same business and together service federal pupil loans for around 13 million student loan borrowers, may very well not 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 pupil loan servicer? If you pay federal student loans, you don’t pay 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 offers customer service.
This’s another major step toward our commitment to improving customer care and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world class experience when addressing [Federal Student Aid], and I am confident that FSA has hired the businesses with the know how, experience and expertise to deliver 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 yearly – contracts which are signed with five student loan servicers to service federal student loans as well as 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 Pupil Loan Servicer
DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ brand new plan, you might begin making pupil loan payments by way of a centralized platform, studentaid.gov, as opposed to through the individual pupil loan servicer sites. DeVos thinks the current student loan servicing platform lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We are shocked We’re shocked that the two highest rated servicers and the committed employees that are accountable for achieving those rankings will not be considered by the Department because of 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 will pursue every legal 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 its contract, and Lakes which are Great was servicing $243.2 billion of student 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. Individually, Nelnet services $48.7 billion in FFELP, private schooling as well as customer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
The thing you must do next
When Nelnet or even Great Lakes service your federal student loans:
Keep making your regular monthly student loan payments to Nelnet or perhaps Great Lakes.
You do not need to apply for a brand new pupil loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and will speak with you in advance of any transition.
After you’re informed of your brand new student loan servicer, you can begin driving student loan payments to your new pupil loan servicer.
When that happens, be sure to update car payments.
How you can pay off student loans more rapidly If you’ve pupil loans, be sure to end up with a game plan. What’s the simplest way to pay off student loans quicker? Begin with these 4 options, every one of which have no fees: