Nelnet And Great Lakes Will not Service Your Federal Pupil Loans
If Nelnet or Great Lakes service the federal student loans of yours, you might get a whole new student loan servicer.
Here is what you need to understand.
nelnet and Great Lakes, which are actually a component of the very same company and together service federal student loans for approximately 13 million student loan borrowers, could perhaps no longer 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 improve pupil loan servicing. What’s a pupil loan servicer? Whenever you pay out federal student loans, you do not pay the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and offers customer service.
This’s another key step toward our commitment to improving customer support and holding our contractors accountable for the performance of theirs, DeVos said. Pupils, parents, borrowers, along with schools deserve a world-class encounter when managing [Federal Pupil Aid], and I am confident that FSA has hired the companies with the knowledge, expertise and experience to give that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions annually – contracts that are signed with 5 pupil loan servicers to service federal student loans as well as provide 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 wants to streamline and simplify student loan repayment. Underneath DeVos’ new strategy, you could begin making pupil loan payments by way of a centralized platform, studentaid.gov, instead of through the individual student loan servicer websites. DeVos feels the present student loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are surprised We’re surprised that the 2 highest rated servicers and also the committed employees that are accountable for obtaining those rankings won’t be considered by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this selection of transparency in the task and can pursue every legitimate avenue available to make sure that pupils have the high 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 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 14, 2020 with 2 optional six month extensions through December fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training and customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.
The thing you should do next
If 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 use for a brand new student loan servicer.
The Education Department is going to assign you a new student loan servicer and can communicate with you in advance of any transition.
After you are informed of your brand new pupil loan servicer, you can begin sending student loan payments to your new student loan servicer.
Once that happens, be sure to update car payments.
How you can pay off student loans more quickly If you’ve student loans, ensure to use a game plan. What is the easiest way to pay off pupil loans quicker? Start with these 4 options, every one of which have no fees: