Is Great Lakes Borrower Services a government-backed loan?
Is Great Lakes Borrower Services a government-backed loan?. Great Lakes is a great education financing company and has been for quite several times. Great Lakes Education Loan Services is another name for the company. Also, is the Great Lakes a federal loan? Learn the response by reading the following text.
Does Great Lakes qualify for a federal loan?
Great Lakes is a loan servicer for both federal and private student loans in Madison, Wisconsin. According to research, it manages loans for millions of borrowers through contracts with more than 6,000 schools and 1,000 lenders, including the United States Department of Education (DE).
Therefore, does the Great Lakes company have a Federal loan? Actually, Great Lakes is neither a private nor a federal loan servicer. Great Lakes services both private and federal loans, so the type of loan you have will not change once you begin making payments through Great Lakes. https://en.wikipedia.org/wiki/Great_Lakes
Options for Repaying Student Loans
The repayment options for your student loans will depend on your financial situation and whether you have private or federal loans. Great Lakes plays no role in determining repayment options, but rather ensures that the borrower is charged the correct amount based on the plan she or he has chosen.
Individuals with private student loans serviced by Great Lakes likely have varying options for repayment depending on their lender. If you are having trouble making your payments, you can contact your lender to find out what they can offer. Several private lenders will offer repayment plans comparable to those offered by the government. Unlike federal loans, however, they are not required to offer any discounts or alternative payment options.
You will have access to federal income-based repayment options, including REPAYE (Revised Pay As You Earn), PAYE (Pay As You Earn), IBR (Income-Based Repayment), and ICR (Income-Contingent Repayment), as well as federal loan consolidation and deferment, if you are repaying federal loans through the Great Lakes company. The Standard Repayment Plan for federal loans imposes fixed payments over a ten-year loan term if you do not select an alternative plan.
Here are the income-based repayment options that may be available to you for federal loans serviced by the Great Lakes company:
- REPAYE (Revised Pay As You Earn) may result in lower monthly payments and loan forgiveness. The REPAYE monthly payment is 10% of your discretionary income, which is recalculated annually based on family size and income. If your income is relatively high, your monthly REPAYE payment may be higher than it was under the Standard Repayment Plan. However, if your paychecks are smaller, your monthly REPAYE payment may be significantly lower. After 20 or 25 years of repayment under REPAYE (Revised Pay As You Earn), any unpaid balance is cancelled. However, you may be required to pay income tax on any amount that is forgiven.
- PAYE PAYE (Pay As You Earn) closely resembles REPAYE. However, it is designed for those with a high debt-to-income ratio. Similar payments will comprise 10% of discretionary income, and balances will be forgiven after twenty years. PAYE (Pay As You Earn) participants will never pay more than under the Standard Repayment Plan. The PAYE costs the borrowers more because the longer it takes to pay off the loan due to lower monthly payments, the more interest accrues.
- IBR IBR (Income-Based Repayment) is an alternative for borrowers who wish to reduce their monthly payments, as IBR payments are always less than payments on the standard 10-year plan. The monthly payments for IBR (Income-Based Repayment) are 10 or 15 percent of discretionary income. Your payment may vary annually based on your family size or income. IBR (Income-Based Repayment) is designed for borrowers with a high debt-to-income ratio; it will help you manage your monthly payments, but you will pay more interest over the life of the loan. Similar to the other plans, your remaining balance will be forgiven after 20 or 25 years of payment.
- ICR ICR (Income-Contingent Repayment) is an option that allows you to pay off your loans more quickly as your income increases. Your ICR (Income-Contingent Repayment) monthly payment will be 20% of discretionary income or the income-adjusted amount you will pay for a 12-year fixed loan term. ICR (Income-Contingent Repayment) may result in a higher monthly payment than the standard repayment plan, but any remaining balance is forgiven after 25 years.
Tips For The Most Successful Great Lakes Lending Experience
Here are some tips for maximizing your borrowing experience on the Great Lakes:
- Utilize the Great Lakes’ online resources.
Federal loan repayment options vary. Great Lakes is aware that it can be difficult for borrowers to select the best repayment option, so they have created a Repayment Planner to simplify the process. The Repayment Planner enables you to view the potential impact of each program for which your loans are eligible, as well as the impact on your repayment period and interest paid. You can access the Repayment Planned by logging into your online account with Great Lakes.
- Start making payments immediately
Although student loan repayment may be far from your mind while you are in school, it is a good idea to begin thinking about it as soon as possible. You can begin making payments with the Great Lakes company while you are still in school. Most loans begin accruing interest while you are still in school; therefore, beginning repayment early can reduce the total amount of interest accrued and bring you closer to paying off the loan principal.
- Utilize the Great Lakes customer service
If you are struggling to make your monthly payments or want to discuss all of your options with a subject-matter expert, Great Lakes customer service can assist you. Here, you should never be required to pay for assistance with student loans. The Great Lakes team will assist you in comprehending and deciding on federal student loan consolidation, service member benefits, payment plans, and other related matters.
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