Education Secretary Betsy Devos (Picture by John Lamparski/Getty Pictures)
If Nelnet or Great Lakes website your federal student education loans, you could get a brand new education loan servicer.
Here’s what you ought to understand.
Student Education Loans
Nelnet and Great Lakes, which are included in the company that is same collectively service federal figuratively speaking for about 13 million education loan borrowers, may not any longer solution federal student education loans. The shock statement comes whilst the U.S. Department of Education, led by Education Secretary Betsy DeVos, seeks to enhance education loan servicing. What exactly is pupil loan servicer? Whenever you spend federal figuratively speaking, you don’t spend the government or Department of Education straight. Instead, you spend your student loan servicer, which gathers your student loan re re re payments and offers customer support.
“This is another major action toward our dedication to improving customer support and keeping our contractors responsible for their performance,” DeVos stated. “Students, moms and dads, borrowers, and schools deserve an experience that is world-class working with [Federal scholar Aid], and I’m certain that FSA has employed the firms using the knowledge, experience and expertise to produce that.”
Just Just Just Exactly What Occurred
The Department of Education announced that Federal Student Aid — which supplies significantly more than $120 billion of school funding to significantly more than 68 million students across 5,800 postsecondary organizations each 12 months — signed contracts with five education loan servicers to program student that is federal and supply “enhanced customer support”:
- Edfinancial Services LLC
- F.H. Cann & Associates LLC
- MAXIMUS Federal Services Inc.
- Missouri Advanced Schooling Loan Authority (MOHELA)
- Texas Guaranteed Education Loan Corporation (Trellis Business)