Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
When Nelnet or Great Lakes service the federal student loans of yours, you may get a whole new pupil loan servicer.
Here is what you need to understand.
Great Lakes and nelnet, which are a component of the same company and collectively service federal student loans for approximately 13 million student loan borrowers, may 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 pupil loan servicing. What’s a student loan servicer? When you spend federal student loans, you don’t pay the federal government or maybe Department of Education directly. Rather, you pay your student loan servicer, which collects your student loan payments and provides customer support.
This is another key step toward the commitment of ours to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class experience when managing [Federal Student Aid], and I am confident that FSA has employed the organizations with the know how, experience and expertise to deliver 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 greater than 68 million pupils across 5,800 postsecondary institutions annually – signed contracts with 5 student loan servicers to service federal pupil loans and also 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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Things to Know About Your Pupil Loan Servicer
DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ new strategy, you might begin making pupil loan payments through a centralized platform, studentaid.gov, rather than through the unique pupil loan servicer websites. DeVos believes the present pupil loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re surprised We’re surprised that the two highest rated servicers and also the dedicated employees who are accountable for obtaining those rankings won’t looked into by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by this selection and the absence of transparency in the process and often will engage in every legal avenue readily available to make sure that students have the good 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 student loans for 5.5 million borrowers below its contract, and Lakes that are Great was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its contract. These servicing contracts expire on December 14, 2020 with 2 optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers which are not impacted by the Education Department’s decision.
What you need to do next
If Nelnet or Great Lakes service your federal pupil loans:
Keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You don’t have to apply for a brand new student loan servicer.
The Education Department is going to assign you a new pupil loan servicer and often will speak with you in advance of any change.
Once you’re informed of your new pupil 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 car payments.
How to pay off student loans more rapidly If you have pupil loans, be sure to end up with a game plan. What’s the best way to pay off pupil loans quicker? Begin with these 4 options, every one of which have no fees: