Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
When Nelnet or perhaps Great Lakes service your federal student loans, you might get a whole new student loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are actually part of the very same company and together service federal pupil loans for approximately thirteen million student loan borrowers, may 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? When you pay out federal student loans, you don’t spend the federal government or perhaps Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and supplies customer service.
This is another major step toward the commitment of ours to improving customer care and holding our contractors accountable for the performance of theirs, DeVos said. Students, parents, borrowers, and schools deserve a world-class experience when dealing with [Federal Student Aid], and I am confident that FSA has hired the organizations with the know how, expertise and experience to give that.
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On June 24, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to more than 68 million students across 5,800 postsecondary institutions every year – contracts that are signed with five pupil loan servicers to service federal pupil loans as well as give 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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Things to Know About Your Pupil Loan Servicer
DeVos would like to streamline as well as simplify student loan repayment. Under DeVos’ brand new plan, you might start making student loan payments via a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer sites. DeVos thinks the current pupil loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are surprised We are surprised that the two highest rated servicers and also the dedicated personnel who are liable for getting those rankings will not looked into by the Department for 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 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 31, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers under the contract of its, and Lakes that are Great was servicing $243.2 billion of student loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December 14, 2020 with two optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling and consumer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you should do next
If Nelnet or perhaps Great Lakes service your federal pupil loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Great Lakes or even Nelnet.
You do not need to apply for the latest student loan servicer.
The Education Department will assign you a new student loan servicer and can communicate with you in advance of any change.
As soon as you’re informed of your new pupil loan servicer, you’ll be able to start sending pupil loan payments to your new pupil loan servicer.
Once that happens, ensure to update auto payments.
How you can pay off student loans more quickly If you’ve pupil loans, make sure to end up with a game plan. What’s the easiest way to pay off student loans quicker? Begin with these four options, every one of which have no fees: