Nelnet And Great Lakes Won’t Service Your Federal Student Loans
Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or even Great Lakes service the federal student loans of yours, you might get a whole new student loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are part of the very same company and together service federal student loans for approximately 13 million pupil loan borrowers, can easily not 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 boost student loan servicing. What is a pupil loan servicer? Whenever you pay out federal student loans, you do not pay the federal government or Department of Education directly. Rather, you pay your student loan servicer, which collects the student loan payments of yours and supplies customer service.
This’s another major step toward our commitment to improving customer service and holding our contractors responsible for the performance of theirs, DeVos said. Students, parents, borrowers, as well as schools deserve a world class encounter when addressing [Federal Pupil Aid], and I’m confident that FSA has hired the organizations with the know how, experience and expertise to give that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions every year – signed contracts with five pupil loan servicers to service federal pupil loans and provide 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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What you should Know About Your Student Loan Servicer
DeVos would like to streamline and simplify pupil loan repayment. Underneath DeVos’ brand new strategy, you could start making student loan payments through a centralized platform, studentaid.gov, rather than through the unique student loan servicer websites. DeVos thinks the current pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We are surprised that the two highest rated servicers as well as the committed employees who are liable for obtaining those rankings will not be considered by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this decision and the lack of transparency in the task and will pursue every legal avenue readily available to ensure that students have the premium 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 pupil loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December fourteen, 2020 with two optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private education and consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
What you must do next
When Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Keep making your regular monthly student loan payments to Nelnet or Great Lakes.
You don’t have to use for a new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and will speak with you in advance of any change.
Once you are informed of your new pupil loan servicer, you’ll be able to begin driving student loan payments to your new pupil loan servicer.
When that happens, make sure to update car payments.
How you can pay off pupil loans more rapidly If you’ve student loans, make sure to use a game plan. What’s the easiest way to pay off student loans quicker? Begin with these 4 options, each one of which have no fees: