We explain to school and lender customers how ScholarNet’s great products and service are not impacted by a recent FSA announcement.
Over the last couple of weeks, we’ve received several inquiries from our school and lender customers about ScholarNet and we want to assure you that ScholarNet is on solid footing. You can continue to count on the products and the outstanding service our team provides.
On June 24, Federal Student Aid (FSA) announced several changes they plan to make to the Direct Loan Servicing model as they move to implement the NextGen Financial Services Environment. The changes currently announced by FSA for NextGen do not include utilizing any of the four Title IV Additional Servicers in a business process operations capacity (e.g., contact center and back-office operations). This includes both Great Lakes and Nelnet Servicing, which are separate business units that operate within Nelnet Diversified Services. Understandably, this caused some of you to wonder how this affects ScholarNet. We decided to take a few minutes to respond to these questions clearly and directly to make sure you’re getting the correct information.
ScholarNet is a separate and standalone business operating within Nelnet Diversified Services. Nelnet Diversified Services operates many businesses – including significant commercial FFELP and private loan servicing portfolios, as well as business process outsourcing relationships and a newly launched community solar subscriber management service – that we do not foresee being affected by FSA’s implementation of NextGen. Nelnet is well-diversified, and the large number of other businesses operating within Nelnet – including ScholarNet – will continue to operate as they have been.
We know ScholarNet is important to your institution and you depend on it to serve your students and their families, so we understand why you reached out with your questions. We want you to know that ScholarNet’s future is bright. You can continue to count on our great products and service to help your institution effectively serve your students and families. If you have any further questions, please reach out to a member of the ScholarNet team or contact your ScholarNet representative.