At the point when students get themselves ineligible for government loans and private loans, it is conceivable to make sure about a credit in the interest of your own youngster. Notwithstanding, there are conditions to making sure about these student loans for guardians, with terrible credit a key one.
The great lakes student loans redirects monetary obligation from the student, so the parent takes on the responsibility totally. The assets can be utilized to cover both educational expenses and everyday costs. Premium is charged on the advance at a lower rate than ordinary, somewhere in the range of 7% and 8%, and is reimbursed throughout a concurred timeframe in equivalent amounts.However, supporting student financing in this way is reliant on the candidate having a decent record of loan repayment. Late liquidation decisions or credit defaults can mean the advance won’t be conceded. Likewise, on the off chance that different types of monetary guide are made sure about, at that point the size of the student advance will be decreased.
If you have any federal student loans, you will more likely be on the way to Great Lakes Higher Education Corporation (simply Great Lakes after this). It is a student loan servicing corporation which the US Government uses to deal with student loan servicing.
In comparison with other massive types of student loan servicing agencies, Great Lakes is considered one of the most reliable student loan servicer.The best indicator to come up with that idea is that there are very few numbers of lawsuits against Great Lakes about student loans.
On the other hand, there were some problems with Great Lakes Student Loans which would be better to be knowledgeable about them. To be prepared for any unpleasant cases and have the idea of a solution, it is better to be aware of possible problems that may occur during the partnership with Great Lakes Student Loans.
In the further paragraph, we will provide you with in-detail information about Great Lakes Student Loans. We will guide you on what problems have occurred with these loans, what kind of student loan services they provide, and how to the benefit of Great Lakes.
Otherwise, if you have other special requests or you need help dealing with Great Lakes Student Loans, you may call Student Loan Resolved Helpline.
About Great Lakes
Great Lakes is one of the largest student loan servicers in the whole United States. It is a private-owned corporation which was established in 1967. Since its quality service and work, it is the largest and the most reliable student loan servicer. Besides, Great Lakes borrowing services
According to public reports of 2017, the Great Lakes serviced for more than 7.5 million debt holders and dealt with federal student loans which worth more than $224.4 billion (which is 8,5 billion in private and consumer loans).
By the end of 2019, Great Lakes received almost 20% of new student loans. Even though, in 2017, the Great Lakes merged with another giant student loan servicer – Nelnet, the corporation announced that it would operate under its name.
The HQ of Great Lakes is located in Wisconsin, but there several branches in different states of America such as Indiana, Texas, South Dakota, Minnesota, and Connecticut. There are more than 2000 employees in the corporation currently.
A Basic Review of Great Lakes
Great Lakes provides multiple options for contact when it comes to concerns, questions or early payments. One can contact the Great Lakes by phone, mail, using the mobile application, or entering the online platform. All these options let borrowers make payments with ease.
There is an option for payment method on Great Lakes Student Loans, so you can change your payment to automatic mode which will take the required amount of money from your bank account each month. Through making payment in this method, you can avoid missing the due dates and keep good track of the payments. Besides, this program gives the borrowers 0.25% cut on their interest rate by taking the payments from their bank account automatically.
Problems with Great Lakes Student Loan Servicing
As we mentioned earlier, Great Lakes is one of the nine loan servicing companies that the Department of Education relies on in the billing process of the student debt. Though such important department trusts in the services of Great Lakes, there still occur some unsatisfactory events.
Great Lakes has a better reputation for its work among the competitors. Yet, there are some lawsuits and complaints against Great Lake.
The Better Business Bureau also rates Great Lakes loans with “C” rating. However, some claim that such rating agencies’ conclusions can be biased as they get the main revenue from the organizations they rate.
Right now, while writing this, more than 80% of reviews about Great lakes loan servicer on the Better Business Bureau rating agency’s website is negative. When we take an in-depth look at the historical background of the Great Lakes, we can see numerous problems such as lawsuits, complaints related to student loans.
There is no doubt that Great Lakes is an organization which has strong corporate values. However, it does not guarantee that they will not make a mistake or they do not have incompetent employees. When human labor matters, there are always unpleasant cases, and the Great Lakes is not an exception to this.
Great Lakes Lawsuit
One of the primary lawsuit actions against Great Lakes was the class action alleged by law firms such as Axley Brynelson, Wachs, Gingras, and Cate. They accused Great Lakes of violating the articles of FCRA (abbreviated as Act of Fair Credit Reporting).
Another example of lawsuits against Great Lakes was the case filed by one of the student loan borrowers- Amanda Ross. She accused the Great Lakes of misdirection for the PSLF program.
The Public Service Loan Forgiveness program was created in 2007 when George W.Bush was president. This program is intended for the borrowers who work for public service and have already paid their loans regularly at least 10 years.
Amanda Lawson had an interesting story, so when she completed her doctoral degree, she checked for being eligible for PSLF for her student loan debt with $100000. Great Lakes Student Loans specialist told her that she was qualified.
However, after four years when she applied for forgiveness, she was told a negative response about eligibility. She filed a lawsuit against Great Lakes for giving her fake information about qualifying for the student loan forgiveness.
Additionally, in 2020, another lawsuit was filed by the Student Borrower Protection Center. It raised claims against multiple parties, one of which was Great Lakes. The lawsuit allegations involved the idea that Great Lakes did not implement the CARES Act correctly. Allegedly, the loan servicer provided wrong information to credit agencies about the borrower’s payment actions. As a result, the borrowers’ credit ratings were damaged.
Problems of Auto Pay
Problems of Auto Pay – just like it sounds, Auto Pay is simply a mode of the repayment program. As I mentioned in the early part of this post, this program gives the borrowers 0.25% cut on their interest rate by taking the payments from their bank account each month, automatically.
By mistake, the Great Lake had turned off the AutoPay program for some borrowers without notifying them. As a result, they lost their 0.25% reduction on their interest rate. A considerable number of students blamed Great Lakes due to that unfortunate case.
A Mismatch between Loans and Payments
Another interesting mistake that Great Lake had done is the loan payments that borrowers made were not applied to the right loan. Normally, when you pay more money than the required amount for the loan, the additional part should be applied to the loan at a higher rate.
Unfortunately, for some borrowers, the Great Lake did not act like that. And of course, in such cases, the borrowers lost a considerable amount of reduction on their interest rate.
Unresponded Income-based Repayment Plan Requests
There are some student loan forgiveness programs which require the borrowers to take an Income-Driven Student Loan Repayment plan. Some borrowers accused Great Lake of not even starting the process of repayment applications.
Even though based on legal requirements, Great Lake was obliged to process these applications by the law, and sometimes they rejected them completely.