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

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

When Nelnet or Great Lakes service the federal student loans of yours, you may get a whole new pupil loan servicer.

Here’s what you have to know.

Pupil Loans
nelnet and Great Lakes, which are actually a component of the same company and jointly service federal student loans for approximately 13 million student loan borrowers, could perhaps not 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 pupil loan servicing. What’s a student loan servicer? When you pay federal student loans, you don’t 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 supplies customer care.

This’s another key step toward our commitment to improving customer care and holding our contractors accountable for the performance of theirs, DeVos said. Pupils, parents, borrowers, as well as schools deserve a world class experience when dealing with [Federal Pupil Aid], and I’m confident that FSA has hired the businesses with the expertise, expertise and experience to deliver that.

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What Happened
On June 24, the Department of Education announced that Federal Student Aid – which provides greater than $120 billion of financial aid to greater than 68 million students across 5,800 postsecondary institutions every year – contracts that are signed with five student loan servicers to service federal pupil loans as well as provide 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 wants to streamline and simplify pupil loan repayment. Underneath DeVos’ brand new strategy, you may start making student loan payments by way of a centralized platform, studentaid.gov, as opposed to through the unique student loan servicer websites. DeVos believes the present student loan servicing platform lacks accountability and consistency, which hurts pupil loan borrowers.

Nelnet: We’re shocked We’re surprised that the 2 highest rated servicers and the dedicated personnel that are liable for getting those rankings won’t be looked at by the Department due to this contract, Nelnet CEO Jeff Noordhoek said. We are frustrated and disappointed by this selection and the lack of transparency in the task and will pursue every legitimate 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 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers below the contract of its, and Lakes which are Great was servicing $243.2 billion of student loans for 7.3 million borrowers under its contract. 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 education as well as customer loans for 2.1 million borrowers that are not impacted by the Education Department’s decision.

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

Don’t panic.
Always keep making your regular monthly pupil loan payments to Nelnet or Great Lakes.
You do not have to apply for a new pupil loan servicer.
The Education Department will assign you a brand new student loan servicer and will speak with you in advance of any transition.
Once you are informed of your new pupil loan servicer, you’ll be able to start driving student loan payments to your new student loan servicer.
As soon as that happens, be sure to update car payments.
How to pay off student loans more quickly If you have student loans, make sure to end up with a game plan. What’s the simplest way to pay off pupil loans faster? Start with these four options, every one of which have no fees: