Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or Great Lakes service your federal student loans, you may get a brand new student loan servicer.
Here is what you need to understand.
nelnet and Great Lakes, which are actually part of the very same company and jointly service federal student loans for approximately thirteen million pupil loan borrowers, can easily not anymore 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 enhance student loan servicing. What is a pupil loan servicer? If you spend 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 your student loan payments and offers customer care.
This is another key step toward our dedication to improving customer service and holding the contractors of ours responsible for the performance of theirs, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class encounter when addressing [Federal Student Aid], and I’m confident that FSA has employed the organizations with the know how, 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 greater than sixty eight million students across 5,800 postsecondary institutions per year – contracts that are signed with five pupil 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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Things to Know About Your Pupil Loan Servicer
DeVos would like to streamline as well as simplify pupil loan repayment. Under DeVos’ brand new plan, you could start making student loan payments via a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer websites. DeVos believes the present pupil loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We are shocked We’re surprised that the two highest rated servicers as well as the dedicated personnel that are accountable for obtaining those rankings won’t be looked at by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the lack and this decision of transparency in the task and will engage in every legal avenue available to make sure that students have the good 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 student loans for 5.5 million borrowers under the contract of its, and Lakes which 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 2 optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as consumer loans for 2.1 million borrowers which aren’t influenced by the Education Department’s decision.
What you need to do next
When Nelnet or Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Great Lakes or perhaps Nelnet.
You don’t need to use for the latest pupil loan servicer.
The Education Department will assign you a new student loan servicer and can speak with you in advance of any change.
As soon as you are informed of your new student loan servicer, you can start sending student loan payments to your new student loan servicer.
Once that happens, make sure to update car payments.
How to pay off student loans faster If you have student 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, each one of which have no fees: