Nelnet And Great Lakes Won’t Service Your Federal Student Loans

If Nelnet or perhaps Great Lakes service your federal student loans, you may get a brand new pupil loan servicer.

Here’s what you need to know.

Pupil Loans
Great Lakes and nelnet, which are a component of the same company and jointly service federal pupil loans for approximately 13 million pupil loan borrowers, might not 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 improve pupil loan servicing. What’s a pupil loan servicer? When you pay out federal student loans, you do not pay the federal government or maybe Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and supplies customer care.

This is another major step toward the commitment of ours to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Students, parents, borrowers, along with schools deserve a world class experience when dealing with [Federal Student Aid], and I am confident that FSA has employed the businesses with the knowledge, expertise and experience to provide that.

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What Happened
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 students across 5,800 postsecondary institutions yearly – contracts which are signed with five student 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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DeVos would like to streamline and simplify student loan repayment. Under DeVos’ new strategy, you may start making pupil loan payments via a centralized platform, studentaid.gov, instead of through the individual student loan servicer sites. DeVos thinks the current student loan servicing system lacks consistency and accountability, which hurts pupil loan borrowers.

Nelnet: We’re surprised We’re shocked that the 2 highest rated servicers as well as the dedicated personnel who are liable for getting those rankings won’t looked into by the Department because of this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the absence and this selection of transparency in the process and will engage in every legitimate avenue readily available to make sure that pupils have the high 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 the contract of its, and Lakes that are Great 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 14, 2021. Separately, Nelnet services $48.7 billion in FFELP, private schooling and customer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.

What you need to do next
When Nelnet or Great Lakes service your federal pupil loans:

Do not panic.
Keep making your regular monthly student loan payments to Great Lakes or even Nelnet.
You do not have to use for a new pupil loan servicer.
The Education Department will assign you a brand new pupil loan servicer and will communicate with you in advance of any transition.
Once you are informed of your brand new student loan servicer, you’ll be able to start driving student loan payments to your new pupil loan servicer.
Once that happens, ensure to update car payments.
How to pay off student loans faster If you have pupil loans, make sure to end up with a game plan. What is the best way to pay off pupil loans quicker? Start with these 4 options, all of which have no fees: