Great Lakes transferred to Nelnet because Nelnet acquired the company in February 2018 for $150 million. Following the acquisition, all Great Lakes federal student loan servicing was migrated to the Nelnet platform, a process completed by July 2023 to consolidate operations under one of the largest student loan servicers in the U.S..
Your student loan was likely transferred to Nelnet because the U.S. Department of Education (ED) is moving accounts to improve service, a contract with your old servicer ended, you signed up for a program like PSLF, or your private loan was sold to a new lender/servicer. You should receive official notices from both your old and new servicers, and your loan's terms, interest rate, and balance remain the same during these transfers.
On February 7, 2018, Nelnet announced that it had completed the acquisition of Great Lakes Educational Loan Services, Inc.. The loan servicing operation is now a fully owned subsidiary of Nelnet, the combined company now servicing 42% of the total federal student loan debt.
Heads Up: Your Loan Servicer May Have Changed
Here are some of the recent student loan transfers: Navient loans are now under Aidvantage. GSMR loans are now under Edfinancial Services. Great Lakes loans are now under Nelnet.
The suit alleges that Great Lakes unlawfully increased the principal and interest balances on borrowers' student loans after an administrative forbearance period. The Court has not yet decided whether Great Lakes did anything wrong. There is no money available now, and no guarantee that there will be.
In 2018, Nelnet acquired the student loan company Great Lakes, along with Great Lakes' federal student loan servicing contract. Nelnet now services federal student loans under its own name and private student loans under the brand FirstMark.
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
Great Lakes is in the process of transferring its portfolio to Nelnet, another federal student loan servicer. Nelnet acquired Great Lakes in 2018, but the two entities handled servicing separately. Loan transferring from Great Lakes to Nelnet started in March 2022, and it is expected to continue through June 2023.
MOHELA. The Higher Education Loan Authority of the State of Missouri (MOHELA) is the first nonprofit federal student loan servicer to make it onto our list, narrowly squeaking ahead of Nelnet.
On Dec. 9, 2025, the U.S. Department of Education announced a proposed settlement agreement that would end the Saving on a Valuable Education (SAVE) Plan. The settlement must be approved by the court before it can be implemented. Borrowers can use the Loan Simulator to begin exploring other repayment options.
Nelnet paid $150.0 million in cash for 100 percent of the stock of Great Lakes, following the satisfaction of all required closing conditions.
It's common for lenders to sell mortgages they've originated to offload that debt to a different servicer. If that happens to your mortgage, you'll have a new servicer. The terms and details of your loan won't change, but you will have a new servicer responsible for the day-to-day administration of your mortgage.
If you continue to be late, we are required to report your loan(s) as delinquent to the nationwide consumer reporting agencies starting at 90 days past due. The longer you go without making payments, the more your delinquency can affect your credit rating.
The acquisition included Great Lakes' federal student loan servicing contract with the U.S. Department of Education. Following the merger, Great Lakes' federal student loan accounts were gradually transitioned to Nelnet's servicing platform.
Nelnet bought Great Lakes (it didn't "go under") and all Great Lakes accounts are moving to Nelnet -- many already have. Servicer transfers are pretty routine and will not flummox any reasonable mortgage lender.
Your student loan was likely transferred to Nelnet because the U.S. Department of Education (ED) is moving accounts to improve service, a contract with your old servicer ended, you signed up for a program like PSLF, or your private loan was sold to a new lender/servicer. You should receive official notices from both your old and new servicers, and your loan's terms, interest rate, and balance remain the same during these transfers.
During his time in office, President Trump provided temporary COVID-19 relief by pausing federal student loan payments and interest, later extending it, but also signed legislation (the "Big Beautiful Bill") that capped borrowing for grad students, altered repayment options, and made Public Service Loan Forgiveness (PSLF) harder, leading to increased scrutiny and potential garnishments for defaulted loans under his administration's later actions, notes CNN, WPR, NPR, PBS, Yahoo Finance, Student Loan Borrower Assistance, and The New York Times.
The Nelnet Brand is Born
Union Financial Services rebrands to become National Education Loan Network, or Nelnet.
Yes, student loan forgiveness continued in 2025 through existing programs like PSLF and Income-Driven Repayment (IDR) plans, but major changes occurred, with the SAVE plan facing a proposed end (pending court approval) and tax-free forgiveness ending December 31, 2025, meaning new discharges after that date could be taxable, creating uncertainty and urging borrowers to check their status on StudentAid.gov.