Nelnet And Great Lakes Will not Service Your Federal Student Loans
When Nelnet or Great Lakes service your federal student loans, you might get a whole new student loan servicer.
Here is what you need to understand.
Student Loans
Great Lakes and nelnet, which are part of the very same business and collectively service federal pupil loans for around thirteen million student loan borrowers, can easily no longer 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’s a student loan servicer? If you pay out federal student loans, you don’t spend the federal government or perhaps Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and supplies customer service.
This’s another major step toward the commitment of ours to improving customer support and holding the contractors of ours accountable for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world class experience when dealing with [Federal Student Aid], and I am confident that FSA has hired the companies with the knowledge, expertise and experience to provide that.
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What Happened
On June twenty four, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions annually – contracts which are signed with five pupil loan servicers to service federal pupil loans and also give enhanced consumer 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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DeVos wishes to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you may begin making pupil loan payments through a centralized platform, studentaid.gov, as opposed to through the individual student loan servicer sites. DeVos believes the present 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 and the dedicated employees that are accountable for getting those rankings will not be considered by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the lack and this choice of transparency in the task and can pursue every legitimate avenue readily available to make sure that pupils 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 pupil loans for 5.5 million borrowers below its contract, and Great Lakes was servicing $243.2 billion of student loans for 7.3 million borrowers under its contract. These servicing contracts expire on December 14, 2020 with two optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or perhaps 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 have to use for the latest pupil loan servicer.
The Education Department is going to assign you a new pupil loan servicer and often will get in touch with you in advance of any change.
Once you are informed of your brand new student loan servicer, you’ll be able to start sending student loan payments to your new pupil loan servicer.
Once that happens, ensure to update car payments.
How you can pay off student loans more rapidly If you’ve student loans, make sure to use a game plan. What’s the best way to pay off pupil loans quicker? Start with these four options, each one of which have no fees:
