Nelnet And Great Lakes Will not Service Your Federal Pupil Loans

When Nelnet or even Great Lakes service your federal student loans, you may get a whole new student loan servicer.

Here is what you need to know.

Pupil Loans
nelnet and Great Lakes, which are actually a component of the same company and together service federal student loans for approximately 13 million pupil loan borrowers, can easily not anymore 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? If you pay federal student loans, you don’t spend the federal government or Department of Education directly. Rather, you pay the student loan servicer of yours, which collects the student loan payments of yours and offers customer support.

This’s another major step toward our dedication to improving customer support and holding the contractors of ours responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, and schools deserve a world-class encounter when addressing [Federal Pupil Aid], and I’m confident that FSA has hired the organizations with the expertise, experience and expertise to give 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 every year – signed contracts with 5 pupil loan servicers to service federal student loans as well as provide 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)
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DeVos wants to streamline and simplify pupil loan repayment. Under DeVos’ new plan, you might start making student loan payments by way of a centralized platform, studentaid.gov, instead of through the individual pupil loan servicer websites. DeVos thinks the current student loan servicing system lacks accountability and consistency, which hurts student loan borrowers.

Nelnet: We are surprised We’re surprised that the two highest rated servicers as well as the committed employees that are liable for obtaining those rankings will not looked into by the Department because of this agreement, Nelnet CEO Jeff Noordhoek said. We’re frustrated and disappointed by the lack and this decision of transparency in the task and can pursue every legitimate avenue available to make sure that pupils have the good quality service they’ve come to expect from us.

In June 2009, the Education Department awarded Nelnet pupil loan servicing contracts. As of March 31, 2020, Nelnet was servicing $185.5 billion of pupil loans for 5.5 million borrowers under 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 14, 2020 with two optional six-month extensions through December fourteen, 2021. Separately, Nelnet services $48.7 billion in FFELP, private training and customer loans for 2.1 million borrowers which are not influenced by the Education Department’s decision.

The thing you should do next
When Nelnet or perhaps Great Lakes service your federal pupil loans:

Don’t panic.
Always keep making your regular monthly pupil loan payments to Nelnet or even Great Lakes.
You do not need to use for the latest pupil loan servicer.
The Education Department will assign you a new pupil loan servicer and often will speak with you in advance of any change.
As soon as you are informed of your new student loan servicer, you can begin sending pupil loan payments to your new pupil loan servicer.
As soon as that happens, make sure to update car payments.
How to pay off student loans more rapidly If you’ve pupil loans, make sure to end up with a game plan. What is the best way to pay off pupil loans faster? Begin with these 4 options, all of which have no fees: