If you have Nelnet or Great Lakes for your federal student loan servicer, you will soon be receiving a new servicer. Nelnet and Great Lakes, which collectively manage federal student loans for approximately 13 million student loan borrowers, will no longer service federal student loans after December 2020.

Five Servicers for 68 Million Federal Student Loan Borrowers

The Department of Education announced on June 24th the five servicers that will now service federal student loans are:

  • 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)

Next Gen FSA Expected to Simplify Federal Student Loan Servicing

Education Secretary Betsy DeVos is looking to improve the student loan repayment process by having borrowers make payments on a centralized platform instead of on their servicer’s site. DeVos believes the current student loan servicing system lacks consistency and accountability, which hurts student loan borrowers.

“This is another major step toward our commitment to improving customer service and holding our contractors accountable for their performance. Students, parents, borrowers, and schools deserve a world-class experience when dealing with [Federal Student Aid], and I’m confident that FSA has hired the companies with the knowledge, experience and expertise to deliver that.”

Betsy Devos, Education Secretary

Regardless of which firm holds you loan, IonTuition is here to make managing your student loan repayment as effortless as possible. Click here to talk to a counselor.

Source: Forbes