Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans
If Nelnet or even Great Lakes service your federal student loans, you might get a whole new pupil loan servicer.
Here is what you need to understand.
Great Lakes and nelnet, which are a part of the very same business and together service federal pupil loans for approximately 13 million student loan borrowers, could perhaps 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’s a pupil loan servicer? Whenever you spend federal student loans, you do not spend 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 our commitment to improving customer support and holding our contractors responsible for the performance of theirs, DeVos said. Students, parents, borrowers, as well as schools deserve a world-class experience when managing [Federal Student Aid], and I’m confident that FSA has employed the organizations with the expertise, 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 more than sixty eight million pupils across 5,800 postsecondary institutions each year – signed contracts with 5 pupil loan servicers to service federal student loans as well as give 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)
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What to Know About Your Pupil Loan Servicer
DeVos wishes to streamline and simplify pupil loan repayment. Underneath DeVos’ brand new plan, you may start making pupil loan payments through a centralized platform, studentaid.gov, as opposed to through the individual pupil loan servicer websites. DeVos thinks the present pupil loan servicing structure lacks accountability and consistency, which hurts student loan borrowers.
Nelnet: We’re shocked We are shocked that the 2 highest rated servicers and also the dedicated employees that are responsible for getting those rankings won’t looked into by the Department for this agreement, Nelnet CEO Jeff Noordhoek said. We are frustrated as well as disappointed by the lack and this decision of transparency in the process and often will engage in every legitimate avenue 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 student loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below its contract, and Great Lakes was servicing $243.2 billion of student 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. Individually, Nelnet services $48.7 billion in FFELP, private schooling as well as consumer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you must do next
When Nelnet or even Great Lakes service your federal student loans:
Always keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You don’t need to use for the latest student loan servicer.
The Education Department is going to assign you a new student loan servicer and will get in touch with you in advance of any transition.
After you’re informed of your brand new student loan servicer, you’ll be able to start sending student loan payments to your new student loan servicer.
Once that happens, make sure to update car payments.
How you can pay off student loans faster If you have student loans, make sure to use a game plan. What’s the best way to pay off pupil loans quicker? Start with these four options, each one of which have no fees: