Nelnet And Great Lakes Won’t Service Your Federal Pupil Loans
If Nelnet or even Great Lakes service the federal student loans of yours, you may get a new student loan servicer.
Here’s what you have to understand.
nelnet and Great Lakes, which are actually part of the same company and jointly service federal student loans for around 13 million pupil loan borrowers, may 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 boost student loan servicing. What’s a pupil loan servicer? If you pay out federal student loans, you do not spend the federal government or Department of Education directly. Instead, you pay the student loan servicer of yours, which collects the student loan payments of yours and provides customer service.
This is another key step toward our commitment to improving customer service and holding the contractors of ours accountable for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class experience when addressing [Federal Pupil Aid], and I’m confident that FSA has employed the organizations with the knowledge, experience and expertise to deliver 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 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 5 student loan servicers to service federal pupil loans and also 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
Student Loan Interest Rates: Costs, Options And Ways To Save
What to Know About Your Pupil Loan Servicer
DeVos wishes to streamline as well as simplify pupil loan repayment. Under DeVos’ new strategy, you may begin making pupil loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer websites. DeVos believes the current student loan servicing platform lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We are shocked We are shocked that the two highest rated servicers as well as the committed employees who are responsible for getting those rankings will not be looked at by the Department due to this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this choice and the absence of transparency in the task and can pursue every legal 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 pupil loan servicing contracts. As of March thirty one, 2020, Nelnet was servicing $185.5 billion of student loans for 5.5 million borrowers under the contract of its, and Lakes which are Great was servicing $243.2 billion of student loans for 7.3 million borrowers under its agreement. These servicing contracts expire on December fourteen, 2020 with two optional six month extensions through December 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training as well as consumer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you should do next
When Nelnet or even Great Lakes service your federal pupil loans:
Keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You do not need to apply for a new pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and often will communicate with you in advance of any change.
Once you’re informed of your brand new pupil loan servicer, you’ll be able to begin sending student loan payments to your new pupil loan servicer.
When that happens, ensure to update auto payments.
How you can pay off pupil loans faster If you have pupil loans, make sure to end up with a game plan. What is the simplest way to pay off pupil loans faster? Begin with these 4 options, every one of which have no fees: