Nelnet And Great Lakes Will not Service Your Federal Pupil Loans
If Nelnet or perhaps Great Lakes service the federal student loans of yours, you might get a new pupil loan servicer.
Here’s what you need to know.
Student Loans
Great Lakes and nelnet, which are a part of the same business and collectively service federal student loans for approximately 13 million student loan borrowers, may very well 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? Whenever you pay federal student loans, you don’t pay the federal government or perhaps Department of Education directly. Rather, you pay the student loan servicer of yours, which collects your student loan payments and offers customer service.
This is another key step toward our dedication to improving customer care and holding the contractors of ours responsible for their performance, DeVos said. Pupils, parents, borrowers, along with schools deserve a world class experience when managing [Federal Pupil Aid], and I’m confident that FSA has hired the companies with the knowledge, expertise and experience to give 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
How Creativity Became Essential to Getting Out The Youth Vote In 2020
What Happened
On June twenty four, the Department of Education announced that Federal Pupil Aid – which provides more than $120 billion of financial aid to greater than sixty eight million pupils across 5,800 postsecondary institutions each year – signed contracts with five student loan servicers to service federal pupil loans and also deliver 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
ByDori Zinncontributor
Things to Know About Your Pupil Loan Servicer
ByBrianna McGurraneditor
DeVos would like to streamline as well as simplify pupil loan repayment. Under DeVos’ new plan, you could start making student loan payments via a centralized platform, studentaid.gov, instead of through the unique pupil loan servicer sites. DeVos thinks the current student loan servicing structure lacks consistency and accountability, which hurts student loan borrowers.
Nelnet: We’re shocked We are shocked that the two highest rated servicers and the dedicated personnel that are accountable for achieving those rankings will not looked into by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We’re frustrated as well as disappointed by the absence and this selection of transparency in the process and often will engage in every legitimate avenue readily available to make sure that pupils have the premium quality service they’ve 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 student loans for 5.5 million borrowers below the contract of its, and Great Lakes 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 2 optional six month extensions through December 14, 2021. Individually, Nelnet services $48.7 billion in FFELP, private education and customer loans for 2.1 million borrowers that aren’t influenced by the Education Department’s decision.
The thing you must do next
If Nelnet or Great Lakes service your federal pupil loans:
Don’t panic.
Keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not need to use for the latest pupil loan servicer.
The Education Department will assign you a brand new pupil loan servicer and will speak with you in advance of any change.
Once you’re informed of your new pupil loan servicer, you can begin driving student loan payments to your new pupil loan servicer.
Once that happens, be sure to update auto payments.
How to pay off pupil loans more rapidly If you’ve pupil loans, be sure to have a game plan. What’s the easiest way to pay off student loans quicker? Start with these 4 options, every one of which have no fees: