Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
When Nelnet or even Great Lakes service the federal student loans of yours, you may get a new student loan servicer.
Here’s what you have to understand.
Great Lakes and nelnet, which are a part of the same company and collectively service federal student loans for approximately thirteen million pupil loan borrowers, may very well 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 boost student loan servicing. What’s a pupil loan servicer? If 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 the student loan payments of yours and provides customer service.
This’s another key step toward the commitment of ours to improving customer support and holding our contractors responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, and schools deserve a world class experience when dealing with [Federal Pupil Aid], and I’m confident that FSA has hired the organizations with the knowledge, experience and expertise to give 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 68 million students across 5,800 postsecondary institutions per year – signed contracts with 5 student loan servicers to service federal pupil loans and also provide enhanced customer 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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What you should Know About Your Pupil Loan Servicer
DeVos would like to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you could start making student loan payments through a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer websites. DeVos thinks the present student loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We’re surprised that the two highest rated servicers as well as the dedicated personnel that are accountable for getting those rankings won’t be considered by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by this selection and the absence of transparency in the process and can engage in every legal avenue available to ensure that pupils have the good 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 student loans for 5.5 million borrowers below the contract of its, 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 two optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers that are not influenced 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.
Always keep making your regular monthly student loan payments to Nelnet or perhaps Great Lakes.
You do not need to apply for a brand new student loan servicer.
The Education Department is going to assign you a brand new student loan servicer and will speak with you in advance of any change.
As soon as you are informed of your new pupil loan servicer, you’ll be able to begin sending pupil loan payments to your new student loan servicer.
When that happens, make sure to update auto payments.
How you can pay off pupil loans faster If you have pupil loans, be sure to end up with a game plan. What’s the simplest way to pay off pupil loans quicker? Start with these 4 options, every one of which have no fees: