Nelnet And Great Lakes Won’t Service Your Federal Student Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you may get a new pupil loan servicer.
Here is what you need to know.
Great Lakes and nelnet, which are a part of the same company and together service federal student loans for around thirteen million student loan borrowers, might 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 improve pupil loan servicing. What is a student loan servicer? Whenever you spend federal student loans, you do not spend the federal government or maybe Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and offers customer support.
This is another key step toward our commitment to improving customer support and holding the contractors of ours accountable for the performance of theirs, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world class encounter when managing [Federal Pupil Aid], and I am confident that FSA has employed the organizations with the know how, experience and expertise to provide that.
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On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides greater than $120 billion of financial aid to greater than sixty eight million students across 5,800 postsecondary institutions annually – contracts that are signed with 5 pupil loan servicers to service federal pupil loans and provide 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 Student Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new plan, you may begin making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer sites. DeVos believes 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 also the committed employees who are liable for achieving those rankings will not looked into by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by this choice and the lack of transparency in the process and can pursue every legal avenue available to ensure 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 pupil loans for 5.5 million borrowers under its contract, and Great Lakes 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 2 optional six month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private education as well as consumer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
The thing you need to do next
If Nelnet or Great Lakes service your federal student loans:
Do not panic.
Always keep making your regular monthly pupil loan payments to Nelnet or perhaps Great Lakes.
You don’t have to apply for a new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and often will get in touch with you in advance of any change.
After you’re informed of your new student loan servicer, you’ll be able to begin sending student loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update auto payments.
How you can pay off student loans more quickly If you’ve pupil loans, be sure to use a game plan. What’s the best way to pay off pupil loans faster? Start with these four options, every one of which have no fees: