Nelnet, a key player in budget & finance as a federal student loan servicer, plays a vital role in overseeing loans and streamlining borrower payments. It is imperative for borrowers to comprehend the array of services provided by Nelnet and stay informed about the dynamic changes in the federal student loan servicing arena. This guide delves into the multifaceted functions of Nelnet, shedding light on its services and examining recent developments impacting borrowers, such as the transfer of loans from Great Lakes to Nelnet.
Nelnet Services:
- Online Account Management:
- Register for online access to your Nelnet account.
- Access monthly billing statements and pay bills conveniently.
- Autopay Enrollment:
- Enroll in autopay for automatic deductions, earning a 0.25% interest rate reduction.
- Income-Driven Repayment:
- Request income-driven repayment, limiting payments to a percentage of your income.
- Complete a paper form with Nelnet or apply online on studentaid.gov.
- Deferment and Forbearance:
- Process requests for temporary payment suspension or reduction based on eligibility.
- Helps borrowers stay in good standing to avoid default, with interest potentially continuing during deferment or forbearance.
- Payment Processing:
- Track and collect monthly payments efficiently.
- Provide the option to make extra payments online, by phone, or by mail.
Understanding Loan Servicers:
- Loan Servicer Assignment:
- The U.S. Department of Education assigns servicers when loans are disbursed.
- Log in to My Federal Student Aid to identify your servicer.
- Servicer’s Role:
- Servicers assist with various tasks but may prioritize options favorable to the company over borrowers.
- Borrowers should be aware of repayment options to ask informed questions.
Transition from Great Lakes to Nelnet:
- Great Lakes Portfolio Transfer:
- Great Lakes is transferring its loan portfolio to Nelnet, with the process expected to conclude soon.
- Borrowers will be notified of the transfer, and a new federal student loan account number will be provided.
- Account Management Post-Transfer:
- Borrowers must set up a new online account with Nelnet after the transfer.
- Update payment preferences and account information with Nelnet.
- Department of Education’s Changes:
- The U.S. Department of Education plans to sign new servicing contracts with five companies, affecting the loan servicing landscape.
- Nelnet is scheduled to continue servicing loans through at least December 2023.
- Borrower Preparedness:
- Download and save payment history from the online account.
- Update contact information with the most recent address, phone number, and email.
Conclusion:
As the federal student loan servicing landscape undergoes changes, borrowers must be well-informed about the services provided by Nelnet and stay prepared for potential transitions. Navigating the intricacies of student loan management ensures borrowers can make informed decisions and effectively utilize the services available to them. Whether managing current loans with Nelnet or anticipating changes due to the Department of Education’s contracts, borrowers should proactively engage with their loan servicers to navigate the evolving terrain of student loan repayment.
