Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
When Nelnet or Great Lakes service your federal student loans, you might get a brand new pupil loan servicer.
Here’s what you have to know.
nelnet and Great Lakes, which are a component of the same company and together service federal student loans for approximately 13 million student loan borrowers, may 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’s a pupil loan servicer? When you pay federal student loans, you do not pay the federal government or perhaps Department of Education directly. Instead, you pay your student loan servicer, which collects the student loan payments of yours and supplies customer support.
This’s another major step toward the dedication of ours to improving customer support 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 hired the businesses with the knowledge, experience and expertise to give that.
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On June 24, the Department of Education announced that Federal Student 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 deliver 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 plan, you could start making student loan payments through a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer sites. DeVos feels the present student loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are shocked We’re shocked that the two highest rated servicers and the committed personnel who are responsible for achieving those rankings won’t be looked at by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the absence and this decision of transparency in the task and often will pursue every legal avenue readily available to ensure that pupils have the premium quality service they have 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 student loans for 5.5 million borrowers under the contract of its, and Great Lakes was servicing $243.2 billion of pupil loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December 14, 2020 with 2 optional six-month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers which aren’t impacted by the Education Department’s decision.
What you must do next
If Nelnet or even Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly student loan payments to Nelnet or perhaps Great Lakes.
You don’t have to use for a new student loan servicer.
The Education Department is going to assign you a brand new student loan servicer and can speak with you in advance of any transition.
After you’re informed of your brand new pupil loan servicer, you’ll be able to start sending student loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How you can pay off student loans more rapidly If you’ve student loans, be sure to have a game plan. What’s the easiest way to pay off student loans quicker? Start with these 4 options, each one of which have no fees: