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Nelnet And Lakes which are Great Will no longer Service Your Federal Pupil Loans

Nelnet And Great Lakes Will no longer Service Your Federal Pupil Loans

If Nelnet or Great Lakes service the federal student loans of yours, you might get a brand new pupil loan servicer.

Here’s what you have to understand.

Pupil Loans
Great Lakes and nelnet, which are a component of the same business and together service federal pupil loans for approximately 13 million pupil loan borrowers, might no longer 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 enhance pupil loan servicing. What is a student loan servicer? Whenever you spend federal student loans, you don’t pay the federal government or maybe Department of Education directly. Instead, you pay your student loan servicer, which collects your student loan payments and offers customer service.

This’s another major step toward the dedication of ours to improving customer care and holding our contractors responsible for the performance of theirs, DeVos said. Pupils, parents, borrowers, and schools deserve a world class encounter when addressing [Federal Student Aid], and I’m confident that FSA has hired the companies 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 Student Aid – which provides more than $120 billion of financial aid to more than 68 million students across 5,800 postsecondary institutions every year – contracts which are signed with 5 pupil loan servicers to service federal pupil loans and deliver enhanced customer support:

Edfinancial Services LLC
F.H. Cann & Associates LLC
MAXIMUS Federal Services Inc.
Missouri Higher Education Loan Authority (MOHELA)
Texas Guaranteed Pupil Loan Corporation (Trellis Company)
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DeVos would like to streamline as well as simplify pupil loan repayment. Under DeVos’ brand new plan, you may begin making pupil loan payments via a centralized platform, studentaid.gov, as opposed to through the unique pupil loan servicer websites. DeVos thinks the present student loan servicing platform lacks accountability and consistency, which hurts pupil loan borrowers.

Nelnet: We’re shocked We are surprised that the two highest rated servicers and the dedicated personnel who are accountable for obtaining 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 choice of transparency in the process 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 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 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 fourteen, 2021. Individually, Nelnet services $48.7 billion in FFELP, private education and customer loans for 2.1 million borrowers that aren’t impacted by the Education Department’s decision.

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

Do not panic.
Always keep making your regular monthly student loan payments to Great Lakes or perhaps Nelnet.
You don’t have to use for a new pupil loan servicer.
The Education Department is going to assign you a brand new pupil loan servicer and will get in touch with you in advance of any transition.
As soon as you are informed of your new pupil loan servicer, you can start driving student loan payments to your new student loan servicer.
Once that happens, be sure to update car payments.
How you can pay off pupil loans more rapidly If you’ve pupil loans, ensure to use a game plan. What is the best way to pay off student loans faster? Begin with these four options, all of which have no fees:

 

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