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.

Unexpected Pregnancy Resources
 If the event that you know a low-income family who is experiencing an unexpected pregnancy, you may want to reach out to help. During this time, you can feel overwhelmed and not know what steps to take. But know that you can take on a supportive role in...
Low Income Families and Educational Help
Low Income Families and Educational Help It is a common perception that only the most gifted students are eligible for grants and scholarships to get them through the final phases of their education, and this then gives rise to the popular thought that those residing...
Social Security Benefits & Retirement
Though all Americans look forward to the day when they can kick back in a lawn chair and spend time working in their flower gardens, retirement comes with many burdens. A fixed income or access to a 401(k) may not be enough to supplement the lifestyle many seniors are...
The Most Common Reasons for Debt
 High debt balances can create significant stress, negatively impact not only your future, but it can also impact your health. It can prevent you from enjoying the quality of life that you otherwise may enjoy without the burden of debt payments. While...
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...
4 Challenging Discussions (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue...
Helping Homelessness with Government Grants
 Poverty and homelessness in the United States and around the world is increasing on a daily basis. Here in the United States, rising housing costs and lower livable wages have been among the 2 biggest contributing factors. Lack of mental health facilities...
Five Great Resources for Working from Home
 There have been thousands of people watching “Good Morning America” who have sent us messages thanking us for helping them make the money while working from home. For anyone who hasn’t yet taken the leap forward but feel as though you might be ready,...
Denied Insurance Claim? Don’t Give Up!
Buying insurance is a common and thoughtful step that people take to protect themselves financially from a major mishap, accident or other type of loss. When you purchase insurance, you understandably expect the insurance company to pay out on a claim so that you can...
5 Ways to Keep Your House During A Market Crash
Anyone paying attention to the housing market in the Los Angeles area knows that home prices have been at record highs. National Mortgage News suggests that this could be a housing bubble about to burst, and a decline in home prices and an increase in mortgage...
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...
Government Grants Exposed
You and I have heard it all before, the man with the funny jacket on late night TV telling us that the United States government gives out over 30 Billion dollars in grants every year. And if we want any of that for ourselves, all we have to do is send him...
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...
Affordable Health Insurance
Is finding affordable health insurance as improbable as encountering a unicorn walking across your back lawn? It doesn't have to be. Here are seven steps you can take to lower your costs.   1. Understand your options to buying affordable health...
Tips for Insurance Discounts
Home insurance and automobile insurance might be must-haves, but it doesn’t have to cost you an arm and a leg to have the appropriate coverages. There are things you can do to get discounts on your homeowners insurance and automobile insurance. Here are...
Best Advice for Seeking Employment
Your career and life depend on you taking the time to learn all that you can about earning gainful employment. You cannot get a job without finding the right approach that will open up opportunities. Keep reading if you wish to learn more. Speak with...
Examine Failures and Find Inspiration
How to Examine Failures and Use it as Inspiration Sometimes, when we fail, it can feel like the end of the world. None of us like to be told that we are doing something wrong. None of us like to experience setbacks in our plans. It can make us question our self-worth,...
Coupon Tips That Can Save You Money
Everyone loves a great deal and your luck will get better when you find coupons for your favorite items. There are a lot of great locations to discover coupons these days, including the Internet, newspapers and flyers. These are tips and techniques on how...
Car Shopping and Ways To Pay for It
A franchised new car dealership is a reliable, if not the only, source for anyone who wants to buy a new car.  But to those who prefer buying used or previously owned cars, there are plenty of options and sources one could choose from to be able to make...
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"...
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