In an attempt to ensure funding for students, the Department of Education, with the support of various acts, has decided to take more control over student loans.

Secretary of Education Arne Duncan has awarded companies contracts to control student loans, according to a White House Press Release.

These companies are AES/

PHEAA of Harrisburg, Pennsylvania; Great Lakes Education Loan Services, Inc., of Madison, Wisconsin; Nelnet, Inc., of Lincoln, Nebraska; and Sallie Mae Corporation of Reston, Virginia.

“The award of these contracts provides the Department with the capacity necessary to support anticipated increases in the number of loans owned by the Department and ensures borrowers receive the assistance they need to effectively manage their federal student loan obligations,” the press release stated.

“The award of these contracts is another step in the Department’s efforts to ensure that all eligible students have access to federal student loans and that, in partnership with the private sector, schools and borrowers receive excellent service,” Duncan said.

These contracts are based on performance, and will offer the Department of Education the ability to control all types of student loans, including outstanding debts.

In addition, the revenue generated from these contracts will be based on how well these companies do, such as customer service and ability to avoid defaults.

“The President’s proposal ensures the viability of the federal student loan programs, while saving billions of dollars that can be used to assure the future availability of federal Pell Grants for our nation’s neediest students,” Duncan said.