Subscribe

Best and Worst Student Loan Services

Student Loan ServicesThis is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot plates, coffee pots, notebooks, pens, pencils, laptops, and other necessities for students as they enter adulthood. These incoming freshmen, their parents, and older, non-traditional students also begin looking into how school will be paid for. Financial aid can be a tricky process, and the lenders used by the Federal government sometimes gain a bad reputation. You may not get the opportunity to pick your servicer, but this list will help you gauge where your servicer stands on the government’s short list of loan providers.

The Student Loan Report keeps track of the nine student loan servicers used by the Federal government. With over $1.4 trillion in student debt in the United States, the government relies on these companies to manages the financial aid system. They loan the money, keep track of payments, and perform all other administrative functions for student loans, including debt collection.

Last year, 5,344 complaints were recorded against all nine of the servicers. These can be accessed through the CFPB’s Complaint Database. In order to accurately assess the performance of these servicers, the number of complaints alone cannot be considered. To see which providers are conducting business the most ethically, the number of complaints must be matched against the number of borrowers. The statistic used in determining the best student loan servicers is the number of complaints per 100,000 borrowers in order to stack the servicers against one another.

Here are the top 3 student loan servicers:

 

Great Lakes Servicing

Based out of Madison, Wisconsin, Great Lakes Servicing has been providing student loan servicing for over fifty years. Unlike other companies on this list, Great Lakes does not provide the money for loans, but rather collaborates with over 1,000 lenders to ensure the best options for borrowers. They work hard to ensure that borrowers are able to repay their loans. Last year, they received 255 complaints from their 8,260,000 borrowers. This gives them a ratio of 3.09 complaints for every 100,000 borrowers. That is the lowest number out of all student loan servicers.

Nelnet

Nelnet is one of the largest servicers used by the federal government. They hold roughly one-third of all student loans in the United States. They are headquartered in Lincoln, Nebraska, and have been a subject of scrutiny in debates over the student loan system. In addition to servicing student loans, they also hand out several scholarships and provide resume-building services. Last year, they received 406 complaints out of their 6,240,000 borrowers. This puts their ratio at 6.51 complaints per 100,000 borrowers.

Not-For-Profit Servicers

This group of servicers includes several agencies that do not profit from student loans. Not-for-profit servicers such as Aspire, CornerStone, COSTEP, and others were added to the list of student loan servicers in 2014. As a group, they represent smaller agencies working to ensure that financial aid options remain competitive. They received 209 complaints from their 3,160,000 borrowers last year, putting their ratio at 6.61 per 100,000. This ratio is only a 1/10th difference than Nelnet’s.

Here are the worst 2 student loan servicers:

Pennsylvania Higher Education Assistance Agency (PHEAA)

The PHEAA is a quasi-governmental agency formed by the Pennsylvania General Assembly in 1963. In 1965, it was designated a Federal student loan servicer by the Higher Education Act. Its Federal loan servicing branches operate  as FedLoan Servicing and American Education Services (AES). Last year, it received 907 complaints from 8,350,000 borrowers or 10.86 per 100,000.

Navient

Navient, based in Wilmington, Delaware, is the largest student loan servicer, holding more than $300 billion in student loans. They come in last of all servicers, but it should not be a shock. The corporation began in 1973 as a government-sponsored entity. In January, the CFPB filed a complaint against the corporation for violations of the Fair Credit Reporting Act and Fair Debt Collection Act. Last year, it received 1,317 complaints from its 6,740,000 borrowers. This puts them at 19.54 complaints per 100,000 borrowers.

The student loan process can be tricky. The Department of Education assigns your loan servicer, but you have some control in what to look for during the repayment process. A good servicer will ensure ethical collecting practices. Research your servicer to stay ahead of the game so you can avoid any pitfall that may affect your credit or financial future.

Readership Programs for Children
Readership Programs for Children The summer break may not always be beneficial to children. Studies show that children lose an average of one month of learning during the time off between school years. One way to counter this is to engross them in activities that...
The Greatness of Good Friday
 What a supreme paradox. We now call the day Jesus was crucified, Good.Many believe this name simply evolved—as language does. They point to the earlier designation, "God's Friday," as its root. (This seems a reasonable conjecture, given that "goodbye"...
Natural Antibiotics and Antivirals
The issues of antibiotics and antibiotic-resistant bacteria have gotten a lot of attention lately. The concern is that bacteria, having been exposed to antibiotics for so long, have developed a resistance to the antibiotics, creating "superbugs." The grim reality is...
Applying and Making Phone Calls to Potential Employers
Applying and Making Phone Calls to Potential Employers Applying to Places Not Hiring: A Wise Move or Not? Are you in desperate need of a job? If you are currently unemployed or if you truly think that your current job is making you “crazy,” you may be due for a new...
Government Assistance for Unemployment
Government Assistance for Unemployment Sometimes, life does not go as smoothly as planned. Fluctuations in the economy lead to periodic lay-offs. Sometimes, a company fails and workers find themselves out of work. Often, an employee and employer simply part ways after...
Step By Step Guide To Debt Repair & Rebuilding Credit
Step By Step Guide To Debt Repair & Rebuilding Credit A severe debt situation is a huge financial misfortune that can ruin your ideal credit scores. If you are bothered by this excruciating condition, never worry. You are not alone in this regard. During the...
The Best Self Help Gurus
In the world today, it is easy to come across scammers looking to take advantage of people in their weakest moments. The realm of self-help is no different. In fact, it can be much worse. Self-help scammers apply abstract concepts so that unsuspecting people will fork...
Financial Aid: Grants for Women
 Thanks to thousands of grants, women who want to go back to college and earn a degree can do so without worrying about large tuition fees. Grants for women are available for single moms, minority women, and women that are going in to specific fields of...
Modern Millionaires Mindset
Here’s A Modern Millionaire Rhetorical Question:   If you have a spare million dollars in your bank account today… How will you spend it? Pay off all your bills and loans? Buy your dream car? Dream house? Give your family a better life? Travel all...
SNAP (Supplemental Nutrition Assistance Program)
The first nutrition assistance program was started in 1939. These types of programs were developed to help people during strenuous times and financial hardships. The program we know today (SNAP) was first introduced in 1961 as the Food Stamp Act that was...
A VA Home Loan Can Help You Get Affordable Housing
 Ever since the housing market collapse, lenders have tightened the requirements to qualify for loans. If you don't have the required credit score or enough for a 20 percent down payment, it will be difficult to secure qualification for a conventional...
Who Qualifies for VA Home Loans
For many veterans and their families, buying a home can be a difficult experience. Many veterans have little patience for the drawn out process of finding a loan, and others have not always had the best luck with credit. Fortunately, Veterans Affairs (VA) can help....
How to Manage Credit Card Payments
Do you have issues paying off credit cards? Sometimes the interest itself can be an overwhelming monthly payment. We have gathered some information below from credit experts that can hopefully help you manage your payments and find a way out from under...
Budget Tips for Today’s Family
If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help...
How to Save Money on Your Kids Dental Bills
Your family budget might not extend as far as it used to. Still, you want your children to have healthy teeth and inexpensive kids dental bills. Learn how to save money on your kids dental.  Like Clean Teeth? Try the Dollar Brush!   Courtesy of Fox News Health...
How To Get A Work-From-Home Job and Earn $275 Per Day
How To Get A Work-From-Home Job & Earn $275 Per Day There are many advantages to working from home. There's no expensive and time-consuming commute, for example, and it's also possible to work from home while juggling other responsibilities. However, while many...
Home Improvement Grants
 Is your home desperate for repairs? Are you at your financial limits, broke...flat broke? Have you ever wondered how it would feel to have the government help you be able to afford these critical repairs? Help is possible through new home improvement...
Self Help Works Too!
Self-Help Works Too! Government assistance serves as a great safety net for a lot of people. Unemployment, SNAP, Social Security Disability, and other benefits operate as a great way to prevent total financial collapse following negative life events. However, each of...
How The New Budget will Impact SNAP
How The New Budget will Impact SNAP  The Supplemental Nutrition Assistance Program (SNAP) assists lower-income families to purchase food in order to prevent hunger. The program also provides economic benefits to communities. The proposed budget for 2018...
Positive Thinking Can Change Your Life
Positive Thinking Can Change Your Life Enthusiasm Is Positive Energy “No pessimist ever discovered the secret of the stars, or sailed to an uncharted land, or opened a new doorway for the human spirit.” - Helen Keller Enthusiasm is the sunshine of your mind’s garden....
Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email to Receive New Assistance Updates

Due to the overwhelming response, please enter your name and email to ensure proper results.

Thank You! You will now receive the latest assistance updates!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

Share This