Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
When Nelnet or Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here is what you have to understand.
Great Lakes and nelnet, which are actually a component of the same company and jointly service federal pupil loans for around thirteen million pupil loan borrowers, might 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 student loan servicing. What’s a pupil loan servicer? If you pay federal student loans, you don’t spend 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 supplies customer care.
This is another key step toward the commitment of ours 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 experience when dealing with [Federal Pupil Aid], and I am confident that FSA has hired the organizations with the knowledge, experience and expertise to provide that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to more than sixty eight million pupils across 5,800 postsecondary institutions yearly – signed contracts with 5 pupil loan servicers to service federal pupil loans and deliver 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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DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ brand new strategy, you might start making pupil loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer websites. DeVos believes the present pupil loan servicing structure lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We’re surprised We’re surprised that the two highest rated servicers and also the dedicated personnel that are accountable for achieving those rankings won’t be considered by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this choice and the absence of transparency in the process and will pursue every legal avenue readily available to make sure that students have the premium quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under its contract, and Lakes that are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December fourteen, 2020 with 2 optional six month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
The thing you must do next
When Nelnet or even Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You do not need to use for a new student loan servicer.
The Education Department will assign you a new pupil loan servicer and will communicate with you in advance of any change.
After you’re informed of your new pupil loan servicer, you can start sending pupil loan payments to your new student loan servicer.
Once that happens, ensure to update auto payments.
How to pay off student loans more rapidly If you’ve student loans, make sure to end up with a game plan. What is the easiest way to pay off pupil loans quicker? Start with these four options, all of which have no fees: