When it comes to securing a federal student loan, Great Lakes Higher Education Corporation, a non-profit entity, is one of four approved loan servicers to work directly with schools and lenders. The three other giants in the industry are FedLoan, Navient, and Nelnet.
In its partnership with the Department of Education, as well as private lenders, Great Lakes has 50 years of experience in helping borrowers manage their federal and private student loans. Although during this time their mission has stayed the same, the industry has changed a lot. Great Lakes has been one of the companies leading the forefront during that time. Currently, several million student borrowers rely on Great Lakes, and more than 6,000 schools and 1,000 lenders work with them on loan services.
Great Lakes, based in Madison, WI, has a company slogan of “Doing what’s right.” As a privately-held non-profit entity, Great Lakes uses the profit from their operation to propel its philanthropic ideals of getting as many students as possible to pursue their education goals. Great Lakes believes in the power of education, but it recognizes that some segments of the population are far less likely to go to college – and those students could really unlock their potential and change the trajectory of their lives if they went.
For that reason, Great Lakes specifically focuses the grant money it has available on getting less advantaged students into college, including students of color, students from families who have lower incomes, and students who have never had a family member attend college.
The Services Offered by Great Lakes
Great Lakes provides a number of services to assist borrowers with their student loans and help preserve their credit history in case they run into repayment issues. Defaulting on a student loan can negatively impact a borrower’s future.
They offer many tools borrowers can access to help them manage their student loans responsibly. Borrowers can utilize these particular services right through the Great Lakes online portal:
- Repayment options and resources, including information on standard repayment and income-driven repayment programs.
- Access to payment schedules, billing statements, payment history, tax documents, and loan obligation statements.
- Repayment planners.
- Forbearance and deferment information for borrowers who are having difficulty making their payments.
- Closed school discharge assistance, which can help students whose school closes while they are enrolled.
In addition, Great Lakes offers an online Student Loan Knowledge Center, which offers key information such as:
- Different ways borrowers can make student loan payments, both online and through mobile apps.
- How student loan payments are applied.
- How income-driven repayment plans work and how to apply for them.
- Specific information for veterans who are planning to go back to school.
- How to postpone or decrease loan payments when borrowers are struggling financially.
Some Facts About Great Lakes
Although Great Lakes is based in Wisconsin, it also has multiple operating centers throughout the United States, including Indiana, Minnesota, South Dakota, Texas, and Connecticut.
As one of the biggest federal loan services for students, Great Lakes services more than $244 billion in student loans, with that figure being spread out over 8 million customers. Great Lakes hold the guarantees on almost $75 billion in loans for the Federal Family Education Loan Program. The company makes investments to benefit various communities and their residents. So far, the company has invested almost $260 million in grants.
Great Lakes is also an important employer for those who live in and around the operating centers and headquarters. Throughout the country, Great Lakes employs more than 2,000 people.
As a servicer, since June 2011, it has been ranked No. 1 by borrowers who participated in the U.S. Department of Education quarterly surveys.
Past Problems for Great Lakes
Although Great Lakes has had a long reputation of providing stellar services, the journey hasn’t been without a few bumps in the road.
Great Lakes Better Business Bureau
Although they have an A+ Better Business Bureau rating, there are many complaints from customers about Great Lakes on the BBB website. At the time of writing this, 83% of all reviews of Great Lakes on the BBB website are negative reviews.
Lawsuits Against Great Lakes
Great Lakes has also been embroiled in a federal court class action complaint filed by the law firms of Gingras, Cates and Wachs and Axley Brynelson. The complaint was lodged because of alleged violations of the Fair Credit Reporting Act (FCRA).
Another lawsuit was pursued by borrower Amanda Lawson-Ross, regarding her eligibility for the Public Service Loan Forgiveness program. The forgiveness program began in 2007 during George W. Bush’s presidency. It offers loan debt forgiveness for people who have made 10 years of payments on their balance and who have jobs at non-profits or with the government.
Lawson-Ross was going after her Ph.D. and realized she would owe more than $100,000 by the time she graduated. She checked into the loan debt forgiveness program, learned she would qualify, and allegedly confirmed that with Great Lakes.
During subsequent years, she occasionally touched base to make sure she was still going to be able to qualify. But when she called in 2017, she heard a different story from a customer service representative at Great Lakes. That agent told her all her loans wouldn’t be eligible for the forgiveness program, but that was after she made four years of payments.
She sued Great Lakes because she believes they gave false information about her eligibility for the loan forgiveness program.
Consumer Financial Protection Bureau Keeping Tabs
The Consumer Financial Protection Bureau (CFPB) has also kept a close eye on Great Lakes and other large-scale student loan servicers. The CFPB has been watching student loan complaints lodged by consumers from Sept. 1, 2016, to Aug. 31, 2017, for its annual report of the CFPB Student Loan Ombudsman. During that time, the CFPB handled in the ballpark of 12,900 complaints about federal student loan servicing.
Of those complaints, only 340, or 3 percent, were directed at Great Lakes. That’s compared to 61 percent, or 6,274, that were directed at Navient, and 629, or 6 percent, that were aimed at Nelnet.
Some of the biggest problems experienced by consumers included trouble signing up for income-based repayment plans and having a hard time getting access to borrower protections like student loan discharge.
Reviews for Great Lakes
- BBB Rating: A+ (BBB Accredited since 7/6/2012)
- Consumer Affairs Rating: 1.2 stars (out of 5)
- Yelp Rating: 1.5 stars (out of 5)
Great Lakes Higher Education Contact Information
For more information on how Great Lakes can help with the management and repayment of your federal student loans, visit MyGreatLakes.org or contact them at:
Great Lakes
PO Box 7860
Madison, WI 53707-7860
Phone: 1-800-236-4300
Fax: 1-800-375-5288
Email: borrowerservices@glhec.org
Refinance Your Student Loans With a Private Lender
If you have federal student loans with Great Lakes and would like to refinance them with another lender, consider the below private institutions.
