Pursuing further education is a great way to mature intellectually and open paths to various career choices. However, it is becoming somewhat of a trouble for some families to pay for a college degree. Every year, a college education is getting more expensive.
However, there are always solutions to the problems. And to address this issue, the simplest solution is to get student loans.
If you have explored the qualifications for financial aid and it seems a student loan is your best option, you may find numerous choices. Your loan servicer helps a lot in your debt repayment when managing your federal student loans.
Learn more about the types of loans available and how they work to determine which type of loan is the best option for you. Keep reading to see if Great Lakes student loans are your best option or not.
There are two types of student loans and the difference between these loans is because of their sources.
Private Loans
These loans are provided through sources such as state agencies, banks, and credit unions. All of these are private sources. The procedure is quite simple for those who pursue college financing.
However, it is essential to know that only qualified applicants are provided loans by banks, online lenders, and other sources.
Borrowers need to be aware of associated fees, terms for repayment, interest rates, and possible options for pausing payments in instances of financial hardship.
A co-signer, such as a parent, may be needed to secure a private student loan if the borrower has not yet established credit.
Federal Loans
These are provided and guaranteed by the federal government. A direct subsidized loan is one example. Like private loans, there are fixed interest rates for federal student loans as well.
A subsidized loan means that the government will pay till the student is studying. On the other hand, unsubsidized have to be paid immediately after the money is arranged.
Great Lakes Student Loans
It is one of the largest student loan services. Great Lakes manages nearly 40% of the debt held by student loan borrowers, together with its parent company Nelnet. For federal student loans, it services almost 20% of student debts. It has a contract with the Department of Education of the US and works with over six thousand schools and partners with over a thousand lenders.
Great Lakes was first established in 1967 in Wisconsin and is very common in student loans.
Now the question arises the great lake student loans private or federal?
Great Lakes is neither a private nor a federal student loan company. It provides manages both federal student loans and private student loans. However, it is mainly referred to as a federal loan servicer.
Great Lakes Assistance:
Great Lakes student service can help you with multiple issues such as:
1. Debt Repayment
You can make a monthly payment, or even additional payment online, or even contact customer service.
2. Alternative Repayment Plans
Your servicer will help you with an income-driven repayment plan in case you cannot afford your monthly payment. Depending on your family’s earnings and size, they may even reduce the payment. There are options to change your payment plans as well.
3. Deferment and Forbearance
In case you are going through financial hardships, such as unemployment or hospital expenses, you can contact them and maybe allowed for forbearance or deferment. Your payment can then be delayed.
4. Loan Forgiveness
If you want to proceed with Public Service Loan Forgiveness (PSLF), you can let your servicer know of this. However, you need to work for a non-profit organization to succeed in this. You do not have to pay the loan as great lake may transfer the payment to PSLF.
They can also advise on whether federal loan consolidation is good for you or not.
How does a Great Lakes Student Loan Work?
You will directly be allotted a loan servicer who will manage your account and payments if you have federal student loans.
Your account will be given to a servicer such as Great lake student loans as the Education Department works with your college to process your student loan. You will not be given a choice to choose the servicer.
Then the servicer contacts you and starts working on managing your plans.
It is essential to know that Great Lakes does not originate any loans of their own. Instead, Great Lakes acts as the intermediary and guarantor between lender and borrower.
If you have more questions about student finances or the great lake student loans, you can search them online or directly contact the servicers.
