Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
When Nelnet or even Great Lakes service the federal student loans of yours, you may get a brand new student loan servicer.
Here’s what you need to understand.
Great Lakes and nelnet, which are a part of the very same company and collectively service federal student loans for around 13 million student loan borrowers, can 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 boost pupil loan servicing. What is a pupil loan servicer? Whenever you pay out federal student loans, you do not spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and provides customer service.
This is another key step toward the dedication of ours to improving customer support and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, along with schools deserve a world-class experience when managing [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the knowledge, expertise and experience to give that.
Grads of Life BRANDVOICE|Paid Program
Three Takeaways For Business Leaders Amid New Corporate Commitments
UNICEF USA BRANDVOICE|Paid Program
The Covid-19 Vaccine Market – By The Numbers
Civic Nation BRANDVOICE|Paid Program
Just how Creativity Became Vital to Getting Out The Youth Vote In 2020
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 68 million pupils across 5,800 postsecondary institutions each year – signed contracts with five student loan servicers to service federal pupil loans and deliver enhanced customer 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)
Far more FROMFORBES ADVISOR
Student Loan Interest Rates: Costs, Options And Ways To Save
What to Know About Your Pupil Loan Servicer
DeVos wishes to streamline and simplify pupil loan repayment. Underneath DeVos’ brand new strategy, you might start making student loan payments through a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos believes the present student loan servicing structure lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We are shocked We are shocked that the 2 highest rated servicers and the committed employees that are accountable for getting those rankings won’t be looked at by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the absence and this choice of transparency in the process and often will pursue every legitimate avenue readily available to ensure that students 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 below the contract of its, 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 two optional six-month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private training and consumer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
What you need to do next
When Nelnet or Great Lakes service your federal student loans:
Do not panic.
Keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not have to use for the latest pupil loan servicer.
The Education Department will assign you a brand new student loan servicer and will speak with you in advance of any change.
After you’re informed of your new pupil loan servicer, you’ll be able to start sending 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 quickly If you have pupil loans, make sure to end up with a game plan. What’s the easiest way to pay off pupil loans quicker? Start with these four options, every one of which have no fees: