In recent times, many students and graduates have queried, “What happened to Great Lakes Student Loans?” This concern has become more serious due to significant changes in the student loan servicing industry.
A full understanding of these transformations necessitates examining the history of Great Lakes, what it used to do for student loans, and how this fits in with the bigger picture concerning American student debt issues.
History of Great Lakes Student Loans
Great Lakes Educational Loan Services, Inc., commonly known as Great Lakes started its operations in 1967. It rapidly grew into one of the leading student loan servicers nationally thereby managing federal and private education debts.
In order to achieve this, it was responsible for processing payments on loans, assisting borrowers with repayment options and engaging millions of students and graduates through customer service.
The Role Played By Great Lakes In Student Loan Servicing
MyGreatLakes played a major role in the federal student loan system as a servicer. As such processes involved in students’ loans administration were handled by them including:
- Receiving and processing payments
- Giving advice on deferment or forbearance possibilities
- Helping borrowers comprehend their choices when it comes to payback plans
- Providing clients support services
This is why Great Lakes was held as one of the most user-friendly platforms online which had an efficient customer service base. Its portfolio encompassed billions in dollars owed by university students throughout the nation.
What happened to Great Lakes?
In 2018 when Nelnet bought out Great Lakes, another prominent player within their industry, this question became very applicable. This acquisition marked a turning point for both Great Lakes and its customers.
Acquisition by Nelnet
Two months later after February 2018, Nelnet finally acquired Great Lakes for about $150 million mark. The merger sought to leverage both firms’ strengths, streamline operations while also delivering on better client experience. Thereafter, Great Lakes had to transform in order to comply.
Transition to New Loan Servicing System
One of the most notable changes was a move towards a new loan servicing system. This integration of Great Lakes and Nelnet’s systems was aimed at reducing paperwork and simplifying the process for borrowers. Nonetheless, this transition went on with its own challenges.
Instances where problems were reported as:
- Lack of clarity over account information
- Problems accessing loan summary details online
- Late payment processing and application processes
These developments led many clients who depended on Great Lakes about steady customer services into a state of displeasure.
Changes in Loan Servicing Contracts
Further modifications have been made to the federal student loan servicing environment following recent contract allocations by the Department of Education.
In 2020, the department announced that it would be revamping the federal student loan servicing system to increase customer service levels and create more stringent accountability measures.
One component of this modernization scheme involved contracting new servicers under Next Gen Financial Services Environment (NextGen).
Great Lakes among others had to navigate through these changes whilst competing for new contracts. This changing terrain contributed to alterations and uncertainties regarding how Great Lakes serviced loans.
Impacts on Borrowers
“So, what happened to Great Lakes Loans?” What was the effect of this on borrowers? The acquisition and new service contracts had mixed outcomes for borrowers.
Beneficial Effects
- Upgraded Technology: Aiming at providing better online tools and resources for borrowers, an integration with Nelnet’s systems was done as a result.
- Customer Service Improvement: This meant that Nelnet’s experience and resources would help in improving customer service and giving more comprehensive support to the borrowers.
Negative Impacts
- Service Disruptions: Some problems during the transition period were marked by delays in servicing and other technical errors which caused inconvenience and confusion among borrowers.
- Communication Challenges: In some instances, there were difficulties in getting clear information regarding their loans from the students transitioning.
The Present Status of Great Lakes Student Loans
Great Lakes is still operating as a loan servicer under Nelnet. Though many initial problems during the transition have been ironed out, borrowers occasionally complain about loan servicing. Therefore, it is important for them to keep track of their loan details and maintain regular contact with their servicers.
Prospects Ahead
The question “What happened to Great Lakes Student Loans?” also prompts consideration of the future outlook for the company and the broader student loan servicing industry. NextGen initiative by the Department of Education aims at establishing a more user-friendly and efficient loan servicing system. Here are some aspects:
| Aspect | Description |
|---|---|
| Centralized Servicing Platform | All federal student loans will be managed through a single platform by borrowers themselves, regardless of who services them. |
| Enhanced Customer Support | Adequate levels of customer service provided by servicers along with measures for accountability must be improved upon. |
| Modernized Technology | For serving better technology tools for education loans, modern technology is being harnessed. |
Thus, these improvements will mitigate many borrower issues while enhancing overall experience in managing student loans.
Conclusion
“What happened to Great Lakes Student Loans?” is a complex question that touches on the Nelnet acquisition, transitioning to new servicing systems, and larger changes in the federal student loan servicing environment.
Despite these hurdles, there is an objective of making borrowers more comfortable and efficient during their time. By doing so, students will notice better management and service delivery as regards their loans throughout this NextGen initiative.
Therefore, being aware of ‘what happened to Great Lakes Student Loans’ will indeed help them to move with times amidst dynamic nature of student lending services while making competent financial resolutions about their future livelihoods.
