7 Myths and Facts About Federal Student Loans

Great Lakes is a student loan servicer and originator. We're the connection between you and the lender.

• Part of what we do is:
  • Monitor your school enrollment and status while you're in school.
  • Accept and process your loan payments on behalf of the lender.
  • Assist you as you pay back your loans.
  • Keep you up-to-date with information about your student loans.
  • Originate and service your federal direct consolidation loans, as requested.

• For federal student loans, the interest is determined by the Higher Education Act as enacted and amended by Congress. Interest paid on federal loans either goes to the U.S. Government (for Direct loans) or the individual lender (for Federal Family Education Loans). Also, in general, loan owners control any rate reductions you may get for using an electronic payment method.

• At times, it may feel like your student loans are an overwhelming burden. Remember, your servicer (like Great Lakes) is there to serve you. Stay in touch. Ask questions. Lean on them for help and expertise. At Great Lakes, we look forward to making things go as smoothly as possible with your student loans. Learn more about the free services available to you.

There are numerous repayment options that can help if you're unemployed.

• Income-based repayment plans base your monthly payment amount on your income and family size. Your loan payments could be as low as $0 a month.
• A deferment temporarily postpones your payments, but, interest will still accrue. Who pays for the interest is dependent upon whether your loan is subsidized by the government (they pay the interest) or unsubsidized (you pay the interest).

• Tracking helps prevent any misunderstanding about the types of money you've received for your education (e.g., loans you have to pay back vs. grants you don't). Visit StudentAid.gov to identify your federal loans and your loan servicer. If you also have private student loans, you can get an annual free copy of your credit report from www.annualcreditreport.com to identify them.
• If Great Lakes is your servicer, welcome! We're here to help. Please sign up to access your account on mygreatlakes.org and follow us on Facebook and Twitter. Also, please keep your contact information updated on mygreatlakes.org so you don't miss important communications on your student loans.

• Past due payments (also known as delinquency) can be reported to the national consumer reporting agencies at any time, and under certain circumstances can negatively affect your credit rating.
• Don't wait to take action to fix past due payments! If Great Lakes services your loans, contact us for help in understanding your options, like applying for an income-based repayment plan that may be able to reduce your monthly payment to as low as $0.