FAQ: When will Direct Loans be transferred to the new servicers?

Question:

When will Direct Loans be transferred to the four new servicers (AES/PHEAA, Great Lakes, Nelnet and Sallie Mae)?

Answer:

The Department of Education (ED) had expected to begin assigning Direct Loans to the new federal loan servicers—FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Nelnet, and Sallie Mae—by August 31, 2010. All four additional servicers are servicing Direct Loans well ahead of that date:

• Nelnet began June 23, 2010
• FedLoan began June 30, 2010
• Great Lakes began July 7, 2010
• Sallie Mae began July 14, 2010

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