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.

Feeling Lost? Free (Or Cheap) Career Assessment Tools
In today's world, more people are struggling to pay/find for housing, medical bills, education, and other aspects of life. As a result, embarking on a new career is becoming a popular option to better themselves and their families. However, when choosing a new career,...
Understanding Federal Grants (Part 1)
 Let me start off by asking you this question. How would you like free money that you will never have to pay back, from the federal government? Sounds great doesn't it? Well, the simple truth is that you can get it if the government decides to award you a...
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...
Lifeline Assistance Program
 There is now a program out there that can even help with your cell phone. The special government program called Lifeline Assistance that offers a free phone and minutes to those who qualify. Getting on the list is not very hard, but there are a few things...
The AHCA Impact on Medicare & Medicaid
The Impact on Medicare & Medicaid The repeal and replace legislation concerning the Affordable Care Act (ACA), or Obamacare, seems complicated for many consumers. Though it will likely see changes as it is debated in the Senate, the American Healthcare Act (AHCA)...
How Does Renting to Own Really Work?
 In the years leading up to the financial crisis of 2007-08, the renting to own model — in which tenants/buyers have an option to purchase the house or condo they’re renting from their landlord/seller— was mostly offered by individual homeowners. In the...
Affordable Housing Problems
On 1st Street in Santa Ana — not far from where authorities recently cleared a tent encampment along the Santa Ana River near Angel Stadium — developer Caleb Roope wants to build nearly 1,000 apartments that will be affordable for low-income seniors and...
Easy Formula for Grant Applications
When you look forward to apply for a government grant, you will need to do a lot of research and make elaborate preparations. To give a kick start to your grant seeking process, fist you must understand the different types of grants available. You will...
How To Get The Best Insurance Deals
In most cases finding the best insurance deals is difficult. Since having insurance is a requirement rather than being optional it is a good idea to shop around for the best insurance deals. It’s difficult to shell out the cash for insurance premiums and...
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...
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...
How To Get Involved with Affiliate Marketing or Direct Sales
How To Get Involved with Affiliate Marketing or Direct Sales Life can busy and complicated. With increased costs in childcare, one parent must often stay at home to watch the kids while the other parent works. Or, as someone begins their adulthood, they may need...
Social Security Disability Benefits
Sometimes in life, events occur that prevent people from working in order to make a living. Accidents occur and illness strikes at the most inopportune moments. The Social Security Administration may be able to help. They provide disability benefits to...
“Believe in The Power of 3”
The number 3 is the first number to which the meaning “All” was given. It is the number of the whole as it contains the beginning, a middle, and an end. When you raise the number 3 to a second power, it simply magnifies everything you already have and...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...
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...
Solid Advice for Credit Repair
It may be difficult to find information on the best ways to improve your credit. There is a wealth of different tips in this article to help you rebuild your journey to credit repair. Using these tips can save you from stressing and prevent headaches....
Unpaid Wages Recovery Guide
If you worked for it, then you should get all upaid wages. Everyday can be a struggle and still come up on the short end of the stick. That is why you may be frustrated when you are not paid the money you are owed. Fortunately, there are many steps that you can take...
Walmart Owes Money
Wal-Mart is a nationally recognized big box store offering low prices for customers who have everyday needs. The store employs more than 1.2 million people, and many of them are currently in a situation in which they could receive a big payout from the company for...
Free Cell Phones: Avoid The Trap
Cell phones are becoming very sophisticated with the advancement in the technology. Today the cell phones come with lot of mind-boggling kinds of features on them. Due to the increasing competition between the handset manufacturers and the service providers, lots of...

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 Name and Email for Best Results

Due to the overwhelming response, enter your email for best results. Look for your free ebooks from New Flex Career!

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 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

The More You Share. The More We Can Help!

Share these posts & pages with friends!