Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
When Nelnet or perhaps Great Lakes service your federal student loans, you might get a new student loan servicer.
Here is what you have to understand.
nelnet and Great Lakes, which are part of the same business and jointly service federal student loans for around 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 improve student loan servicing. What is a pupil loan servicer? Whenever you pay federal student loans, you don’t spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and provides customer service.
This’s another key step toward our commitment to improving customer support and holding our contractors responsible for their performance, DeVos said. Pupils, parents, borrowers, and schools deserve a world class encounter when dealing with [Federal Pupil Aid], and I’m confident that FSA has hired the companies with the expertise, experience and expertise to provide that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to more than 68 million students across 5,800 postsecondary institutions each year – contracts that are signed with five pupil loan servicers to service federal pupil loans and give 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 wants to streamline as well as simplify student loan repayment. Underneath DeVos’ new strategy, you could begin making student loan payments via a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer sites. DeVos thinks the present student loan servicing platform lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are surprised We’re shocked that the 2 highest rated servicers as well as the dedicated personnel that are responsible for achieving those rankings will not be considered by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by this choice and the lack of transparency in the process and can pursue every legitimate avenue available to ensure that pupils have the premium quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers below its contract, and Great Lakes 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 education as well as customer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.
The thing you need to do next
When Nelnet or even Great Lakes service your federal pupil loans:
Always keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not have to apply for a brand new student loan servicer.
The Education Department is going to assign you a new student loan servicer and will get in touch with you in advance of any transition.
As soon as you are informed of your brand new pupil loan servicer, you can begin sending student loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How you can pay off student loans more quickly If you have pupil loans, make sure to have a game plan. What’s the simplest way to pay off student loans faster? Start with these four options, every one of which have no fees: