Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or Great Lakes service the federal student loans of yours, you may get a whole new student loan servicer.
Here’s what you need to understand.
nelnet and Great Lakes, which are a part of the same business and together service federal pupil loans for around 13 million student loan borrowers, could very well 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 enhance student loan servicing. What is a pupil loan servicer? When you pay federal student loans, you don’t pay the federal government or Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and supplies customer service.
This is another key step toward our commitment to improving customer care and holding our contractors responsible for their performance, DeVos said. Students, parents, borrowers, and schools deserve a world-class experience when dealing with [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the expertise, expertise and experience to give that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to more than sixty eight million students across 5,800 postsecondary institutions yearly – contracts which are signed with five pupil loan servicers to service federal student 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 to Know About Your Student Loan Servicer
DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ new plan, you may begin making pupil loan payments by way of a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer sites. DeVos believes the present pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re surprised We are surprised that the two highest rated servicers and also the dedicated employees who are responsible for getting those rankings won’t looked into by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this decision and the absence of transparency in the process and often will engage in every legal avenue readily available to make sure that pupils have the high 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 pupil loans for 5.5 million borrowers under its contract, and Lakes which are Great was servicing $243.2 billion of student 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. Separately, Nelnet services $48.7 billion in FFELP, private education and customer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
The thing you should do next
When Nelnet or even Great Lakes service your federal student loans:
Always keep making your regular monthly pupil loan payments to Great Lakes or even Nelnet.
You don’t need to apply for the latest pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and can communicate with you in advance of any transition.
As soon as you are informed of your new student loan servicer, you’ll be able to start driving pupil loan payments to your new pupil loan servicer.
When that happens, make sure to update auto payments.
How to pay off student loans faster If you have pupil loans, ensure to end up with a game plan. What is the easiest way to pay off student loans quicker? Begin with these four options, each one of which have no fees: