Navigating Your Student Loans: An Overview of Great Lakes and the Transition to Nelnet

Great Lakes Educational Loan Services was one of the largest student loan servicers in the United States, playing a crucial role in managing student debt for millions of borrowers. However, significant changes have occurred in recent years. This article aims to provide a comprehensive overview of Great Lakes, its services, and the subsequent transition to Nelnet, another major federal loan servicer.

What Was Great Lakes?

Great Lakes Higher Education Corporation was a non-profit corporation headquartered in Madison, Wisconsin. For over 50 years, Great Lakes provided loan management and borrower support services. As a federal loan servicer, Great Lakes acted as an intermediary between borrowers and the Department of Education (ED). The government contracts with private companies like Great Lakes to manage debt and offer customer service. Great Lakes services the following types of federal loans: Direct Unsubsidized, Direct Subsidized, Direct PLUS, Direct Consolidation, and Federal Family Education Loan (FFEL).

Among other things, it oversaw billing and answered borrowers’ questions about their student loan accounts. Great Lakes borrowers could also submit requests to the servicer for income-driven repayment plans and turn to them for their student loan records. It is one of 10 federal loan servicers, and it also handles some private student loans on behalf of its business partners.

Acquisition by Nelnet and Transfer of Services

In February 2018, Nelnet Diversified Solutions, LLC, the parent company of Nelnet Federal Student Loan Services, acquired Great Lakes. While Nelnet acquired Great Lakes in 2018, the two entities handled servicing separately. However, the federal student loan system went through several changes over the last few years, one of which involves a shuffling of loan servicers. As of summer 2023, Great Lakes Educational Loan Services left the servicing business.

Loan transferring from Great Lakes to Nelnet started in March 2022 and continued through June 2023. The portfolio of Great Lakes’ student loan servicing was transferred to Nelnet Federal Student Loan Services.

Understanding the Role of a Loan Servicer

When you’re in school, you likely don’t pay much attention to your loans or your loan servicer. But your loan servicer can play an important role in managing your debt, helping you identify ways to reduce your payments or postpone your payments if you’re dealing with an emergency.

The name of the company sending you a federal loan bill every month is your servicer. If your loan payments haven’t begun or you’re not sure which company is your servicer, log in to My Federal Student Aid to find out. However, they can’t change how payments are processed and may not suggest the most beneficial repayment option for you. It’s most important to know your repayment options so you can know the right questions to ask.

Nelnet: The New Servicer for Great Lakes Loans

Department of Education (ED), Nelnet is the new servicer for Great Lakes student loans. Nelnet Federal Student Loan Services has been in the loan servicing industry for decades. To date, it has helped 15 million borrowers with managing their federal education loans. Along with accepting your loan payments on behalf of the Department of Education, it facilitates repayment plan requests and deferment and forbearance options.

Transferring to a new loan servicer isn’t uncommon, but it’s easier to make that transition when you know what to expect. Despite shifting to a different company, there’ll be minimal impact on your student debt. All that’s changed is which student loan companies service your loans. Your repayment status remains constant, too. For example, if you were in deferment with Great Lakes, you’d still be in deferment with Nelnet.

What to Expect During the Transition

If Great Lakes was your servicer, you were notified that your account was transferred two weeks prior to your transfer date. You also received notification from Nelnet once the transfer was complete and a new federal student loan account number.

Read also: Guide to UC Davis Student Housing

When your loans transfer to Nelnet, your Great Lakes account may say “closed” or “paid in full.” That account status suggests that your student debt is settled.

Great Lakes will continue to forward payments to Nelnet for at least 120 days after your transfer date, but you must set up a new online account with Nelnet after your loan transfers. Once you have access you can contact Nelnet, access your monthly billing statements and pay bills.

How to Manage Your Loans with Nelnet

Making a payment with Nelnet works in much the same way as it did with Great Lakes. The primary difference is that you’ll now submit your loan payments through Nelnet instead of Great Lakes. Before you can utilize autopay or make online payments, you must create a new account with Nelnet.

To repay your student loans that were once with Great Lakes and are now with Nelnet, you can pay:

Online or by phone: You can make payments over the phone by calling 888-486-4722 or online through your Nelnet.com account.
Through your bank: Your bank may offer online bill pay through their payment system. If you use this payment method, you’ll need to identify Nelnet as the “payee” and provide your Nelnet account number, and the P.O. The initial letter of your account number determines the address you send payments.

In addition to these payment options, you can also create special payment instructions on how you want your payments applied to your loan balance. A one-time payment instruction can be set up within your Nelnet.com account while making a payment. You can also set up recurring instructions for all future payments.

Read also: Investigating the Death at Purdue

Outside of paying through Nelnet, you can also access your Great Lakes borrower payment history. Log in to your Nelnet.com account and go to “Inbox” within the Documents menu to find this information.

Key Actions to Take After the Transfer

Create a Nelnet Account: This is essential for managing your loans, making payments, and accessing important information.
Update Autopay: If you were enrolled in autopay with Great Lakes, you must re-enroll with Nelnet. Enrolling in autopay will reduce your interest by 0.25 percentage point.
Review Payment Options: Familiarize yourself with the various repayment plans offered by Nelnet, including income-driven repayment options.
Update Contact Information: Ensure your contact information is current with Nelnet to receive important updates and notifications.

Repayment Options Available Through Nelnet

If Great Lakes is your loan servicer, the company is who you contact if you need to change your payment plan or if you have questions about your loan status. Depending on your situation, you may be able to take advantage of one or more of the following repayment options.

Income-Driven Repayment (IDR) Plans: It’s important to contact Great Lakes right away if you can’t afford your payments. You may be eligible for an IDR plan which extends your repayment term and calculates your monthly payments based on your discretionary income. You can request income-driven repayment, which limits your student loan payments to a percentage of your income, by completing a paper form with Nelnet. (You can apply online on studentaid.gov and then recertify your income each year online as well.) You might be able to choose these income-based options for federal loans serviced by Great Lakes. This page will show which government student loans can borrowers repay with what repayment options. REPAYE might offer lower monthly payments or loan forgiveness. It will cost 10% of your discretionary income. Each year, your pay is adjusted based on your family income. However, income tax may still apply to any amount forgiven. PAYE is similar to REPAYE but is designed for people with high debt levels relative to their income. It will cost 10% of your discretionary income. However, you cannot forgive your outstanding debts in the next 20 years. The Standard Repayment Plan will still apply. IBR is an option for people who want to lower their monthly payments. It’s usually less than the standard 10-year plan. These payments are 10% to 15% of your discretionary earnings. ICR will help you pay off your loans faster as you earn more. They forgive any unpaid balances in 25 years.
Deferment or Forbearance: If you have a financial emergency, such as a major illness or you lose your job, you can temporarily postpone your payments with a federal loan deferment or forbearance. Contact Great Lakes to find out what you need to do to apply. Nelnet can help you temporarily stop making payments or reduce your payment amount if you qualify. This helps you stay in good standing to avoid default. But during any periods of deferment or forbearance, interest can continue to build.
Direct Consolidation: If you have multiple federal student loans, a Direct Consolidation Loan allows you to combine them together. Going forward, you’ll have just one loan, one servicer, and one simply monthly payment to remember.

Additional Options to Consider

Additionally, options like student loan forgiveness programs and student loan refinancing could provide further assistance.

Loan Forgiveness: If you plan on pursuing federal loan forgiveness programs like Public Service Loan Forgiveness or Teacher Loan Forgiveness, Great Lakes is who you contact to discuss your eligibility and how to apply.
Student Loan Refinancing: You can't choose a federal loan servicer; they’re assigned to you. But if you’re unhappy with the service you’ve received from your loan servicer, you could take advantage of student loan refinancing. While you can technically refinance federal loans, this isn’t always the wisest decision. In general, refinancing is best for students who exclusively borrowed private student loans. While you’ll lose your federal loan benefits, you could qualify for a lower interest rate or reduced monthly payment. If you opt to consolidate your federal loans, your next step is applying for a Direct Consolidation Loan.

Addressing Past Issues with Great Lakes

In the past, some borrowers have reported issues with Great Lakes. According to the 2020 Student Loan Ombudsman report, Great Lakes is in the top five companies with the most borrower complaints.

Nearly 5 million borrowers whose federal student loans are serviced by Great Lakes may have seen their credit scores dip because their debts were erroneously reported to the major credit bureaus during the automatic six-month forbearance that began in March 2020. Your paused payments may have been reported as “deferred” as a result of a coding error. The paused payments should have been reported as if you had made them. If you were current when forbearance began, for example, the status should be “current.”Deferred status is not a scoring factor under FICO credit scoring formulas, the ones most commonly used to make lending decisions. But deferred status can lower the credit scores generated by VantageScore formulas - the scores most commonly offered for free to consumers as a way to track their credit history. Great Lakes says it is working with credit reporting agencies to correct the inaccuracies. If your loans are still with Great Lakes, the company recommends you reach out to Nelnet's customer service department.

Tips for Managing Your Student Loans Effectively

To prevent any miscommunications or issues, use these following tips to better manage your Great Lakes loans:

Sign up for an Online Account or the Mobile App: If you have access to a computer or smartphone, create an account with the myGreatLake online portal or the mobile app. When you have an account, you can make payments, view your payment history, see your loan details, and download necessary forms. Being able to track your payment activity will allow you to follow your repayment progress.
Contact Customer Support When You Need Help: If you need help with your loans, either because you think your payment wasn’t applied appropriately or you can’t afford your payments, contact Great Lakes as soon as possible.
Keep Good Records: If you contact customer service to discuss deferring your payments, entering an IDR plan, or pursuing loan forgiveness, take careful notes. Record the date and time of the call, the name of the customer support representative, what you discussed, and the outcome and takeaways from the call. Keeping detailed records can come in handy if there are any disputes about what you agreed to with customer service.

Contacting Nelnet for Assistance

If you have concerns or questions about your student loan, contact Nelnet for assistance. Nelnet is your primary resource for your previously serviced Great Lakes student loans. To contact Nelnet via phone, dial 888-486-4722. Along with your basic contact information, include your account number or Social Security number to avoid response delays. You should’ve also received your new Nelnet account number. If you’re calling internationally, dial 303-696-3625. Box 82561, Lincoln, NE, 68501-2561. California residents can contact Nelnet at P.O. Furthermore, Nelnet lists additional addresses for payments, documents, and bankruptcy claims.

How to File a Complaint

If you’ve had difficulty with Great Lakes that you have been unable to resolve, start by filing a complaint directly with a customer service representative. If your issue goes unresolved, you can also make complaints about Great Lakes to:

Department of Education
FSA Ombudsman GroupP.O.

When you submit a complaint, you’ll have the opportunity to share your grievances and describe your desired outcome. Make sure to keep records of conversations you have, including the day, time and customer service representative you spoke with. This method should be used only as a last resort, says the federal student aid office.

tags: #mygreatlakes #student #loans #overview