As the US Department of Education restructures federal student loan servicing, Nelnet and Great Lakes will no longer process federal loans
The Department of Education has not renewed contracts with student loan servicer Great Lakes and Nelnet, with plans to change the way student loans are serviced and repaid.
The Department of Education wants to change to a model where loans are paid directly through studentaid.gov for more consistency and accountability.
If the Department of Education doesn’t change plans, 12.3 million Great Lakes and Nelnet customers will have their loans changed to another servicer in December.
In the meantime, borrowers should continue making regular payments to their current servicer.
Sign up for Personal Finance Insider’s email newsletter here »
As of December 2020, Great Lakes and parent company Nelnet will no longer service federal student loans.
According to a press release by the Department of Education released July 24, the two companies haven’t made the list of the five companies with contracts to service federal student loans. The release states that five companies — EdFinancial Services, F.H. Cann & Associates, Maximus, MOHELA, and Trellis Company — will hold contracts from the Department of Education. See the rest of the story at Business Insider
‘Let’s just see what happens’: Suze Orman advises Americans hold off buying homes during the pandemicIf our kids ever get our life insurance money, I hope they’ll spend it in 2 ways: on debt and index fundsIf your company has stopped matching 401(k) contributions, you can still save for retirement — you just might want to change how you do it
Original Source: feedproxy.google.com
Visited 173 Times, 1 Visit today