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- 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.
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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.
Federal student loans are issued through the government, but after graduation, repayment isn’t made directly through the government….