Nelnet And Great Lakes Will no longer Service Your Federal Student Loans
If Nelnet or even Great Lakes service the federal student loans of yours, you might get a brand new student loan servicer.
Here is what you need to understand.
nelnet and Great Lakes, which are actually part of the same business and jointly service federal pupil loans for around 13 million pupil loan borrowers, could very well not anymore 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? When you pay out federal student loans, you do not pay 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 supplies customer care.
This’s another key step toward the dedication of ours to improving customer service and holding our contractors accountable for their performance, DeVos said. Students, parents, borrowers, as well as schools deserve a world class experience when addressing [Federal Student Aid], and I’m confident that FSA has employed the companies with the knowledge, experience and expertise 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
Just how Creativity Became Essential 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 more than 68 million pupils across 5,800 postsecondary institutions annually – contracts that are signed with 5 pupil loan servicers to service federal pupil loans as well as 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
Things to Know About Your Pupil Loan Servicer
DeVos would like to streamline as well as simplify pupil loan repayment. Underneath DeVos’ brand new strategy, you could start making pupil loan payments via a centralized platform, studentaid.gov, as opposed to through the individual pupil loan servicer websites. DeVos believes the current student loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.
Nelnet: We’re shocked We are shocked that the 2 highest rated servicers as well as the committed employees who are liable for achieving those rankings won’t be looked at by the Department for this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by the absence and this decision of transparency in the process and can pursue every legal avenue readily available to make sure that pupils have the premium quality service they have come to expect from us.
In June 2009, the Education Department awarded Nelnet student loan servicing contracts. As of March thirty one, 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 contract. 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 schooling and consumer loans for 2.1 million borrowers that are not influenced by the Education Department’s decision.
What you need to do next
If Nelnet or even Great Lakes service your federal pupil loans:
Do not panic.
Keep making your regular monthly pupil 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 pupil loan servicer and will get in touch with you in advance of any transition.
After you are informed of your new student loan servicer, you’ll be able to start driving student loan payments to your new pupil loan servicer.
As soon as that happens, be sure to update auto payments.
How you can pay off pupil loans faster If you’ve pupil loans, ensure to have a game plan. What’s the simplest way to pay off pupil loans faster? Begin with these four options, every one of which have no fees: