What You Need to Know About Great Lakes Student Loan
If you haven’t started paying off federal student loans, you may not have heard of Great Lakes student loans. However, if you have unpaid federal debt, you probably need to read it soon.
Great Lakes cash Loans is one of the largest student loan providers in the country, offering 1: 4 or 23% direct student loans. This equates to approximately 8 million Great Lakes borrowers with more than $ 220 billion in debt.
This Great Lakes review has everything you need to know about your Great Lakes loan.
Get a Great Lakes Student Loan
When you apply for a federal student loan, you are assigned the role of trustee of a list of approximately 10 major providers of student loan services. Generally, the only way to transfer a federal loan to another provider is through loan consolidation.
However, it is possible to change your loan service provider by applying for a direct consolidation loan program. When consolidating loans, combine some or all of your federal student loans into one consolidated loan. This gives you an interest rate and a monthly payment to manage.
The new interest rate is calculated from the weighted average interest rate on each consolidated loan and rounded to the nearest eighth.
Who can consolidate?
To consolidate your loans with Great Lakes or another provider, you must have at least one federal loan that is eligible for consolidation. You must also have completed your studies. In addition, you must:
- Log into studentloans.gov and apply for a student loan consolidation. It takes approximately 30 minutes to process the request.
- Here you can decide if you want to consolidate your credit with Great Lakes loan services.
- Also, select the loans you want to consolidate and the type of payment plan you want, and then apply.
- Generally, it takes 30-60 days to process and pay for your application, but it can take up to 90 days. You still have to pay off your existing loans while you wait for the loans to be delivered to the Great Lakes Higher Education Corporation.
- Repayment will begin after the initial loan grace period if you refinance the loan within the grace period or within 60 days of paying off a Great Lakes loan.
- Next, you must register with My Great Lakes to cancel the student loan and administer the loan.
General information: prices, conditions, prices and limits
There are no loan consolidation fees. This is necessary to qualify for income-based payment plans (more on that later).
- These programs allow you to pay only between 10% and 15% of income on student loans volunteers.
- After 20 or 25 years of repayment, you will receive the balance of your student loan. You can also enroll in the standard payment plan or other payment plans offered by the Department of Education.
- If you want to access certain student loan programs, such as: B. Public loan program, you must also consolidate your student loans.
Pros and Cons of Great Lakes Loans
- Federal Insurance – As a provider of federal student loan services, Great Lakes offers the same benefits that you can get from any other federal loan service provider. These include, for example, access to income-based payment programs, student loan programs, and late payments and repairs. These benefits will help you if you decide to go back to school or face financial difficulties.
- Easier Payments – By consolidating loans, you simplify your monthly loan payments. All you need to do is apply for a federal student loan. While it doesn’t necessarily save you money, it gives you a comprehensive view of single-digit student debt and can be a less daunting task in terms of managing your refund.
- No Less Interest on Money – Great Lakes consolidation loans won’t lower your interest rate or save you money.
- Longer payment periods would mean a higher interest rate – if you extend the term of the loan during consolidation, you will pay more interest over the life of the loan. If you think you don’t need federal student loan protection or want your loans to pay off faster, you can use refinancing your student loan with a private lender to lower your mortgage rate.
- BBB Complaints: The Better Business Bureau has received several complaints about Great Lakes Loans and student loan provider oakparkfinancial. For more information, see our oakparkfinancial Student Loan Review.
Great Lakes money back options
Like all federal student loan providers, the Great Lakes loan service offers seven standard payment plan options.
- Standard repayment period – Make the same monthly repayments for 10 years . Once this is done, you will be automatically added to this plan.
- Standard Refunds – Closed: Make lower payments first, then increase your payment amount every two years. This is useful if you have a low income now, but want to earn more in the future.
- If you only have a direct loan of more than $ 30,000 ( Federal Family Education Loan , FFEL) : an extension of your payment. You can pay off the loan for 25 years instead of 10 years . This way, you can lower your monthly payments but end up paying more interest.
- Adjusted Earnings Compensation – Direct Loans Only . You pay 10% of your discretionary income for loans. After 20 years, you will receive student loans. If you also have graduate loans, it will take you 25 years to pay them back.
- Pay As You Make (PAYE): Applies only to direct loans. This requires proof of financial hardship and allows you to pay only 10% of the proceeds of a discretionary loan. It must be renewed every year.
- Income-based payment (IBR) for FFEL and direct loans. In case of financial difficulties, the monthly payments will be between 10% and 15% of your discretionary income, and after 20 or 25 years the loans will be extended.
- Income Based Repayment (ICR) – For direct loans. It is also the only plan that qualifies for Parent PLUS loans. It does not require any financial hardship. You must pay 20% of your discretionary income or what you would have paid with another fixed payment plan for 12 years.
Can I get refinancing from a private lender?
You do not need to consolidate a federal student loan with a federal student loan service provider if you want to consolidate loans. There are times when it makes sense to refinance a federal loan from a private lender with a private student loan.
For example, if you want to speed up your student loan payments and you don’t need to use an income-based repayment program, federal student loan tolerance, or deferred protection offers, refinancing your private student loan can save you money.
However, this option should not be underestimated as federal credit protection would be lost. You may not even be entitled to a lower interest rate due to private refinancing. In that case, it may make more sense to enlist the services of a federal student loan service provider.
If you think student loan refinancing is right for you, check out our guide to the best student loan refinancing companies. And if you are looking for more loan options check out our website and get . cash now
Bottom Line: Are Great Lakes Student Loans Right For You?
Great Lakes Student Loans is one of many student loan providers that can monitor your federal loan payment. Great Lakes offers customer support. By consolidating your loans with one servicer, you can enroll in another student loan repayment program.
However, this does not allow to reduce the price. So if you want to save money and have good credit, consider going to a private student loan refinance company.