DIKSIA.COM - If you have federal student loans that were serviced by Great Lakes Educational Loan Services, you may have noticed some changes in your account recently. That's because Great Lakes has transferred its entire portfolio of federal student loans to Nelnet, another student loan servicer, and is no longer in the business of servicing student loans.
This transfer was authorized by the U.S. Department of Education (ED) and has posted a notice about it at StudentAid.gov/greatlakes. Your loan was not sold. ED will continue to own your loan; however, Nelnet will manage your loan and assist you on ED's behalf as your federal student loan servicer.
This change will not impact the existing status, terms, conditions, interest rate, or available repayment plans of your federal student loan. However, there are some things you need to do and know to ensure a smooth transition and avoid any issues with your loan repayment.
In this article, we will explain what Great Lakes and Nelnet are, why the transfer happened, what you need to do after the transfer, and how to contact Nelnet for any questions or concerns. We will also provide some tips and resources to help you manage your student loans effectively and achieve your financial goals.
What are Great Lakes and Nelnet?
Great Lakes and Nelnet are two of the nine companies that ED contracts with to service federal student loans. They are responsible for handling the billing, payment processing, customer service, and other administrative tasks related to your student loans.
Great Lakes and Nelnet have been part of the same company since 2018, when Nelnet acquired Great Lakes for $150 million. However, they operated as separate entities until 2023, when Great Lakes decided to exit the student loan servicing business and transfer its loans to Nelnet.
Nelnet is one of the largest student loan servicers in the country, with more than 40 years of experience and over $500 billion in student loans under management. Nelnet also offers other products and services related to education, such as tuition payment plans, online learning platforms, and scholarship search tools.
Why did the transfer happen?
The transfer of Great Lakes student loans to Nelnet was part of a larger overhaul of the federal student loan servicing system that ED initiated in 2020. The goal of this overhaul was to improve the customer experience, increase accountability, and reduce costs for borrowers and taxpayers.