Nelnet And Great Lakes Will not Service Your Federal Student Loans
If Nelnet or even Great Lakes service the federal student loans of yours, you may get a whole new student loan servicer.
Here is what you need to know.
nelnet and Great Lakes, which are part of the very same business and jointly service federal pupil loans for around thirteen million pupil loan borrowers, may very well not anymore 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 is a student loan servicer? Whenever you pay federal student loans, you don’t spend the federal government or Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and supplies customer care.
This’s another major step toward the commitment of ours to improving customer care and holding the contractors of ours responsible for their performance, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world class experience when dealing with [Federal Student Aid], and I am confident that FSA has employed the companies with the expertise, expertise and experience to deliver that.
Grads of Life BRANDVOICE|Paid Program
3 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
How Creativity Became Necessary to Getting Out The Youth Vote In 2020
On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to more than 68 million students across 5,800 postsecondary institutions yearly – contracts that are signed with five student loan servicers to service federal student loans as well as provide 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)
More FROMFORBES ADVISOR
Pupil Loan Interest Rates: Costs, Options And Ways To Save
Things to Know About Your Pupil Loan Servicer
DeVos would like to streamline as well as simplify student loan repayment. Underneath DeVos’ new strategy, you might begin making pupil loan payments by way of a centralized platform, studentaid.gov, rather than through the unique student loan servicer sites. DeVos thinks the current pupil loan servicing structure lacks accountability and consistency, which hurts pupil loan borrowers.
Nelnet: We are surprised We’re shocked that the 2 highest rated servicers and the dedicated personnel that are accountable for achieving those rankings won’t be looked at by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by this decision and the lack of transparency in the process and can pursue every legal avenue available to make sure that students 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 thirty one, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under the contract of its, 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 14, 2020 with two optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as customer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.
What you must do next
If 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 don’t have to apply for a new student loan servicer.
The Education Department is going to assign you a new pupil loan servicer and will communicate with you in advance of any transition.
As soon as you’re informed of your brand new pupil loan servicer, you can begin sending student loan payments to your new student loan servicer.
When that happens, make sure to update auto payments.
How to pay off pupil loans more rapidly If you have student loans, make sure to use a game plan. What’s the simplest way to pay off pupil loans faster? Begin with these 4 options, all of which have no fees: