About lender
Great Lakes is one of nine private companies that have signed an agreement with the US Department of Education to manage the billing of federal student loans. Thus, a loan servicer does not own the loan and does not control the interest rate. Great Lakes is one of the most commonly assigned student loan services. Up to the moment, the company has been managing one in four student loans or 23% of all direct loans. This amounts to almost 8 million Great Lakes debtors who owe more than $220 billion in debt.
Great Lakes was founded in 1967 and had its headquarters in Madison, Wisconsin. The corporation was acquired by Nelnet in 2018. However, the two organizations handled servicing independently. Beginning in March 2022, loans were transferred from Great Lakes to Nelnet.
Great Lakes, like all services, monitors borrowers' accounts, makes monthly payments and interacts with borrowers directly about their loans. If a borrower is suffering financial trouble, the firm can assist them in changing their repayment arrangements or requesting deferral or forbearance. It also verifies debtors' eligibility for loan forgiveness.
Pros and cons
Pros
- Easy repayment. You simplify your monthly loan repayment by merging your loans. You will just have to worry about one federal student loan. Although this will not necessarily save you money, it will provide you with a comprehensive view of your student debt in a single amount, making repayment easier.
- Special protections. As a federal student loan servicer, Great Lakes provides all the same protections as any other federal loan servicer. Access to income-driven repayment schemes, student debt forgiveness programs, and forbearance and deferment are examples of these. These advantages are in place to help you if you wish to return to school or if you run into financial difficulties.
- Payment Options: Great Lakes customers can pay using a variety of methods, including cheques, cash orders, credit cards, and scheduled withdrawals.
Cons
- No interest rate reduction. Consolidating your loans with Great Lakes will not result in a lower interest rate or any savings.
- Longer repayment terms imply higher interest. If you choose to extend your loan payback term when consolidating, you will end up paying more interest over the loan life.
- Does not operate as a federal student loan servicer anymore.
Terms and conditions
Great Lakes does not set interest rates as a federal loan servicer. For loans distributed from July 1, 2022, to June 30, 2023, the fixed rate for federal undergraduate Stafford Loans will rise from 3.73% to 4.99%.
Servicers of federal student loans can only offer the payment plans established by the US Department of Education. As a result, Great Lakes, like all of its competitors, provides a limited set of repayment options:
- Standard 10-year fixed-payment plan;
- A 25-year plan with fixed payments;
- 10- or 25-year graduate plan in which payments grow at regular intervals;
- Income-driven plans.
