What to Expect in 2023 as Great Lakes Student Exits Loan Servicing
Are you a borrower with Great Lakes federal student loans? Read on to learn about the transfer to Nelnet and how it may impact your student loan repayment.
If you are a borrower with federal student loans from Great Lakes, you may have received notification that these loans are going to be transferred to Nelnet. If this is the case, you should contact Nelnet as soon as possible. The new loan servicer for these accounts is Nelnet. This transfer is being made as part of ongoing efforts by the United States Department of Education to improve borrowers’ experiences with the servicing of their student loans and are aimed at improving the overall quality of the education loan repayment experience.
This article will walk you through everything you need to know about the transition of the servicer for your federal student loans from Great Lakes to Nelnet. The transition is scheduled to begin during the fall of 2022 and last through fall of 2023.
What factors influenced the decision to transfer?
This transfer is being made as part of the ongoing efforts that are being made by the Department of Education of the United States of America to improve the overall quality of the experience that borrowers have with regard to the servicing of their student loans. Reducing the number of loan servicers who are responsible for the portfolio of loans they service is the means by which the Department intends to achieve its objective of making the servicing of borrowers’ loans more effective, efficient, and user-friendly.
When, exactly, is the relocation going to take place?
The transition of the servicing portfolio for federal student loans from Great Lakes to Nelnet is scheduled to take place throughout 2023, according to the announcement made by both companies. You will be notified by both Great Lakes and Nelnet about the transfer, and you will also be notified about any changes to the contact information for your loan servicer that may have occurred because of the transfer. This is only the case if the transfer will have an impact on your loans.
What kind of an impact do you anticipate the transfer having on borrowers?
Great Lakes is responsible for the servicing of any federal student loans that are currently being processed, but Nelnet is going to take over this responsibility. If you already have loans of this kind, it indicates that they will be transferred. The following information will provide you with the understanding you need to fully comprehend the repercussions of the transfer:
The terms of the loan, including both the interest rate and the repayment schedule, will not change.
Any payments that have already been made that have met the requirements will not result in any kind of penalty for you.
There is a chance that both the website and the contact information of the company that services your loan will be updated. Both Great Lakes and Nelnet will provide you with information regarding the transfer, as well as any modifications to the contact information for your loan servicer that may have occurred.
It is possible that any automatic payment plans or loan consolidation strategies that you have set up with Great Lakes will require an update from you. If this is the case, you will need to provide this update to Great Lakes.
To get themselves ready for the transfer, borrowers need to know what steps they need to take.
- They are responsible for ensuring that Great Lakes has their most current contact information in order to ensure that they are notified of the transfer and any changes that may occur to the contact information for their loan servicer.
- Keep an eye out for any notifications that may come from Great Lakes or Nelnet regarding the transfer, as well as any changes that may occur to the contact information for their loan servicer. Also, make sure to note any changes that may occur to the information that you provide to their loan servicer.
- They need to make sure that any loan consolidation plans or automatic payments that they had set up with Great Lakes are updated with Nelnet after the transfer so that there is no break in service when it comes to making payments. This will ensure that there is no lapse in service.
Will my existing credit score be impacted in any way by the transfer?
A: The transfer will not have any impact whatsoever on your credit score, so there is no need for you to be concerned about that.
Will the transfer have any impact on the terms of my loan or the interest rate that I am currently paying?
A: The terms of your loan and your interest rate will not be altered in any way as a result of the transfer, so there is no need for you to be concerned about that.
Do I need to do anything out of the ordinary to get ready for the transition to Nelnet if my loans are going to be moved there?
A: You should update your contact information with Great Lakes and keep an eye out for notification from both Great Lakes and Nelnet about the transfer and any changes to your loan servicer’s contact information.
What are the benefits of combining the servicing of several different loans into one payment?
The United States Department of Education made the decision as part of an effort to streamline the process of loan servicing and make it more user- and customer-friendly to distribute the servicing of federal student loans among a smaller number of loan servicers. This decision was made in an effort to reduce the number of loan servicers. The following is a list of some of the benefits that come with consolidating the servicing of your loans, including but not limited to:
Because borrowers will have fewer points of contact with their loan servicers, it is likely that they will experience fewer communication problems, and they will generally have an experience that is simpler and more streamlined overall.
When obtaining information about their loans from loan servicers, borrowers might be able to get information that is both more reliable and up to date.
It is possible that the Department will be able to increase its oversight and monitoring of loan servicers, which will most likely result in increased compliance with federal regulations. This is something that the Department will be able to do.
The consolidation could result in lower costs not only for loan servicers but also for the Department, which would allow for a greater allocation of resources to be put towards the support of borrowers as well as various other important initiatives.
As a result of the transition of their loan servicing to Nelnet, borrowers who have federal student loans from the Great Lakes region will experience a significant amount of change. Nelnet will be taking over the servicing of these loans. Even though the purpose of the transfer is to provide borrowers with a better experience when it comes to the servicing of their loans, borrowers should make sure they are aware of any changes to the contact information for their loan servicer as well as the transfer.
If borrowers follow the steps outlined in this article and take the appropriate actions, they will be able to prepare for the transfer and ensure that there will be no disruptions in the servicing of their loans. If you have any additional questions or concerns regarding the transfer, you can contact TitanPrep today