Nelnet And Great Lakes Won’t Service Your Federal Student Loans
When Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a whole new pupil loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are a component of the very same business and together service federal pupil loans for approximately 13 million pupil loan borrowers, might no longer 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 improve pupil loan servicing. What is a student loan servicer? If you spend federal student loans, you don’t pay the federal government or maybe Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and offers customer care.
This is another major step toward the commitment of ours to improving customer support and holding our contractors accountable for their performance, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world-class encounter when addressing [Federal Pupil Aid], and I am confident that FSA has hired the businesses with the know how, experience and expertise to give that.
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On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to greater than 68 million pupils across 5,800 postsecondary institutions yearly – contracts that are signed with five 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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What you should Know About Your Pupil Loan Servicer
DeVos wishes to streamline as well as simplify student loan repayment. Underneath DeVos’ brand new plan, you could begin making student loan payments through a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer websites. DeVos thinks the current student loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are surprised We are surprised that the two highest rated servicers and the dedicated personnel who are liable for obtaining those rankings will not be looked at by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this choice of transparency in the process and often will pursue every legitimate avenue available to ensure that pupils have the high quality service they’ve 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 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 agreement. These servicing contracts expire on December fourteen, 2020 with 2 optional six-month extensions through December fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you need to do next
When Nelnet or Great Lakes service your federal pupil loans:
Always keep making your regular monthly pupil loan payments to Great Lakes or Nelnet.
You do not need to apply for a new student loan servicer.
The Education Department will assign you a new pupil loan servicer and often will communicate with you in advance of any change.
As soon as you’re informed of your brand new pupil loan servicer, you can start driving pupil loan payments to your new pupil loan servicer.
When that happens, make sure to update car payments.
How to pay off pupil loans more rapidly If you have student loans, be sure to have a game plan. What is the simplest way to pay off student loans faster? Begin with these four options, all of which have no fees: