Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
If Nelnet or even Great Lakes service your federal student loans, you might get a new pupil loan servicer.
Here’s what you have to know.
Great Lakes and nelnet, which are actually a part of the very same business and together service federal pupil loans for approximately 13 million student loan borrowers, might 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 student loan servicing. What’s a pupil loan servicer? When you pay federal student loans, you don’t 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 support.
This’s another key step toward the dedication of ours to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class encounter when managing [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the knowledge, expertise and experience to provide that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions every year – contracts that are signed with 5 pupil loan servicers to service federal student 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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Things to Know About Your Student Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Under DeVos’ brand new plan, you might begin making pupil loan payments via a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer sites. DeVos thinks the current pupil loan servicing system lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re surprised We are surprised that the two highest rated servicers and the dedicated employees that are accountable for achieving those rankings will not be looked at by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the absence and this decision of transparency in the process and often will engage in every legitimate avenue available to make sure that students have the premium 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 that are Great was servicing $243.2 billion of pupil 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. Separately, Nelnet services $48.7 billion in FFELP, private schooling 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 perhaps Great Lakes service your federal pupil loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You don’t have to use for a brand new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and can get in touch with you in advance of any transition.
Once you’re informed of your brand new student loan servicer, you’ll be able to start sending student loan payments to your new student loan servicer.
As soon as that happens, be sure to update auto payments.
How you can pay off pupil loans more quickly If you’ve student loans, ensure to have a game plan. What’s the easiest way to pay off pupil loans quicker? Start with these 4 options, every one of which have no fees: