Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or perhaps Great Lakes service your federal student loans, you might get a new pupil loan servicer.
Here is what you have to know.
Great Lakes and nelnet, which are actually a part of the very same company and jointly service federal pupil loans for approximately thirteen million pupil loan borrowers, may 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 enhance student loan servicing. What’s a student loan servicer? If you pay out federal student loans, you do not spend the federal government or maybe Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and offers customer service.
This’s another key step toward our dedication to improving customer care and holding the contractors of ours accountable for the performance of theirs, DeVos said. Students, parents, borrowers, and schools deserve a world class encounter when dealing with [Federal Student Aid], and I’m confident that FSA has employed the organizations with the expertise, experience and expertise to provide that.
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On June twenty four, the Department of Education announced that Federal Student Aid – which provides more than $120 billion of financial aid to more than sixty eight million pupils across 5,800 postsecondary institutions yearly – signed contracts with 5 student loan servicers to service federal student loans as well as give enhanced consumer 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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DeVos wants to streamline and simplify pupil loan repayment. Underneath DeVos’ new strategy, you might start making pupil loan payments via a centralized platform, studentaid.gov, as opposed to through the individual student loan servicer websites. DeVos thinks the current student loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are shocked We’re surprised that the 2 highest rated servicers and the committed personnel that are responsible for obtaining those rankings won’t looked into by the Department for this contract, 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 available to ensure that pupils have the good quality service they’ve come to expect from us.
In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March 31, 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 pupil loans for 7.3 million borrowers under its contract. These servicing contracts expire on December fourteen, 2020 with two optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers which are not influenced by the Education Department’s decision.
What you need to 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 student loan servicer.
The Education Department will assign you a new pupil loan servicer and will get in touch with you in advance of any transition.
Once you’re informed of your brand new pupil loan servicer, you’ll be able to start driving pupil loan payments to your new student loan servicer.
When that happens, be sure to update auto payments.
How to pay off pupil loans more rapidly If you have pupil loans, make sure to use a game plan. What’s the simplest way to pay off pupil loans faster? Start with these four options, each one of which have no fees: