Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
When Nelnet or Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here’s what you need to understand.
Great Lakes and nelnet, which are actually a component of the very same business and collectively service federal student loans for around 13 million student loan borrowers, can easily no longer 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 pupil loan servicing. What is a pupil loan servicer? Whenever you spend federal student loans, you don’t spend the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and supplies customer care.
This’s another major step toward our commitment to improving customer service and holding our contractors accountable 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 companies with the expertise, expertise and experience to give 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 68 million students across 5,800 postsecondary institutions yearly – contracts that are signed with 5 pupil loan servicers to service federal pupil loans and deliver enhanced customer 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 wishes to streamline as well as simplify pupil loan repayment. Underneath DeVos’ brand new strategy, you may begin making student loan payments through a centralized platform, studentaid.gov, as opposed to through the individual student loan servicer websites. DeVos believes the current student loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are shocked We’re shocked that the two highest rated servicers as well as the committed personnel who are accountable for achieving those rankings will not looked into by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this decision of transparency in the task and will pursue every legal avenue readily available to make sure that students have the high 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 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 14, 2020 with two optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.
The thing you must do next
If Nelnet or perhaps Great Lakes service your federal pupil loans:
Keep making your regular monthly student loan payments to Great Lakes or even Nelnet.
You don’t have to apply for the latest pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and often will speak with you in advance of any transition.
As soon as you’re informed of your new student loan servicer, you can start driving pupil loan payments to your new student loan servicer.
As soon as that happens, make sure to update auto payments.
How you can pay off student loans more rapidly If you have pupil loans, be sure to have a game plan. What’s the best way to pay off pupil loans faster? Start with these four options, all of which have no fees: