Great Lakes Higher Education Corporation

Review: Good morning,

On July 18, 2014 I called Great Lakes to make two one-time payments above and beyond my monthly payment. I spoke with [redacted] (extension # available if desired) to complete these transactions. The first payment was to pay off a loan account in full and after processing, it was done correctly and I am pleased with the service of that portion. I also appreciated [redacted]'s help very much. The second payment was to pay off (in full) the highest interest rate loan remaining in a [redacted] indicated that the pay-off amount of $7,829.33 was correct for July 21, 2014 which was the day the payments would process. This was acceptable and understandable because the 18th was a Friday and I called to make the payment in the afternoon. [redacted] also instructed me to call Great Lakes back in a couple of days with a token # to ensure that the payment was applied appropriately. This was also acceptable. I monitored how the payment was applied and noticed that after it was processed, I still had a balance of $191.87. I called Great Lakes and spoke with [redacted] (again, extension # available) about the issue. She instructed me that she'd submit the request and it would be corrected/processed in a few days. She also assured me that it would be back-dated to July 21st so that I would not be held responsible for the interest that accrued since the payment was made. In the meantime, I continued to monitor my account, but noticed it was still not updating and it was incorrect. I then emailed Great Lakes hoping I could get a more transparent answer about whether or not the process had been submitted, etc. On July 25th, I received an email from [redacted] that stated "We have forwarded your email request on for processing. Please allow 2-4 business days for this request to be reviewed and for your payment to be updated." I did so and waited. On July 28th, however, I noticed it was still not correct and the account was still showing a positive balance when it should have been (according to the payment made on July 18th and processed on July 21st) $0.00. I called back to Great Lakes customer service and spoke with [redacted] (again, extension # available). [redacted] put me on hold to speak with customer accounts or another department about the payment, came back on the phone, and assured me that she had submitted the request and that the interest would be removed/backdated to the day my payment was processed (again, that was July 21st). She advised me to call back in 2-3 days to ensure it was applied correctly. On August 1st, 2014 the account had still not been updated. It was showing a balance of $4.23 when it should have been (as of July 21st, 2014) $0.00. I called back to Great Lakes AGAIN and spoke with [redacted]. She was extremely professional and apologetic that I had to call so many times to get this taken care of. She put me on hold to contact the billing/customer accounts department (as all the others had also done) and I was, again, told that the payment was submitted, would be processed and it would be backdated to $0.00 to reflect the day I made the original payment.

In the meantime, I had a regularly scheduled $288.33 payment coming out via autopay on August 2, 2014. I asked [redacted] how this issue would impact the ability to pay the regularly scheduled payment or if I should suspend my autopay until this gets resolved (I am paid ahead on the account so it wouldn't have penalized me). She informed me that the $288.33, after interest, would be applied to the highest interest rate loan so the 6.55% loan would be wiped out anyhow- even if the backdating wasn't finished yet. Then, the $4.23 backdate/correction to the 6.55% interest loan would be applied/credited to the remaining loan(s). All four of these conversations were consistent with one another and in EACH instance I was told I would not be held responsible for the additional accrued interest or amount as my balance would be $0.00.

Fearing the worst, I have been monitoring my account very closely to ensure that the account gets updated before too much time passes. I called Great Lakes this morning (8/5/14) and asked the customer service representative to speak directly to a supervisor because this is the FIFTH time I have called to resolve the same issue. I was able to speak to [redacted] (extension # available), and after being assured FOUR times by assumingly competent employees/representatives, [redacted] could tell me no more than "the original amount must have been calculated incorrectly - I'm sorry you were misled". She refused to backdate the amount accrued since I initially made the payment or correct the error that was not just made by [redacted], but also by FOUR other supposed knowledgeable PROFESSIONALS.

Knowing I had a regular $288.33 payment applied on August 2nd, I then asked how the last payment was applied and she was able to tell me that on the $4.23 left in that 6.55% interest loan, only $0.06 ($0.01 in interest and $0.05 in principal) was paid out of the $288.33 payment made on August 2nd toward that loan. It was my understanding that after interest was applied on all loans, payment toward principal went to the highest interest rate loan first. This was also confirmed to me by [redacted] on the telephone on August 1st when she told me the remaining balance would be paid even if the correction wasn't finished processing yet. In sum, that $288.33 payment paid a total of $31.38 in interest so it's unclear to me why the (now) $4.16 remains in that account. [redacted] said she did not know how payments are divided among loans because she doesn't work in that department; she also could not forward me to anyone who knew the answer because "they don't accept calls". She then quickly transferred me to HER supervisor, who was unavailable to talk. I left a voicemail and hope to hear back from her as soon as possible.

Great Lakes, as many companies do, makes their mission statement very clear. They claim that they are committed to "doing what's right". Unfortunately, I am experiencing the opposite to be true. IF there truly was an error in the original calculation, that was not my error; nor was it my fault. Similarly, if an error was noted to me BEFORE I needed to call the company FIVE times, I could have been more understanding of the error. But instead, the loan has continued to accrue interest despite the fact that I have been told since July 18th that it no longer is because it is paid in full. Even as I wait for another supervisor to call me back, it's clear that I am NOT a priority and the company is NOT doing their best to help make student loan repayment successful because the loan CONTINUES to accrue interest as I have spent that last 18 days trying to correct this issue.Desired Settlement: There are three outcomes I would like to see as a result of this experience:

First and foremost, I would like the loan balance on that 6.55% to reflect $0.00 as I have been told it would FOUR times. If there was, indeed, an error in the math by [redacted] (the gentleman I spoke with on 7/18) which wasn't caught by 4 representatives, I would like Great Lakes to cover that. I have been told FOUR times that I do not need to pay anything additional on that loan.

Second, more training for customer service representatives, or perhaps a refresher course/seminar/training, seems necessary to ensure that a customer does not get misled FOUR times over 18 days of continuous communication, if that is actually what happened.

Finally, it appears there needs to be more clarity/transparency on how loan payments are applied. There is still a lot of secrecy about the process, as evidenced by [redacted] (the supervisor) not being able to tell me how a payment is divided among different loans within the same payment. As my regular payment on August 2nd was applied, only .0002% of the payment actually went to the highest interest rate loan. This is opposite what I was told by [redacted] on August 1, 2014 and every other employee at Great Lakes I've spoken with, with the exception of [redacted] this morning. Becoming more transparent can be done on the website or at least training the employees to be able to speak to that point. Currently, the website discusses how payments are applied but it also assumes the same interest rate in all of those examples. I find that to be a form of "strategic ambiguity" and as a consumer who wants to understand the process (and acknowledges I borrowed money and need to pay it back), I don't appreciate it.

Business

Response:

August 12, 2014

I have 3 separate student loans all under one account with MyGreatLakes. Under this account I pay a lump sum for all of the loans. Using this arrangement I can not see how my previous payments are applied. I have even asked via email multiple times to apply my payments to the highest balance that also happens to have the highest interest rate. MGL customer service says that's not possible. I should have the right to pay off the loans how I wish as long as I make the minimum payments. They have also been applying my payments to the loan with the lowest interest rate. So much so that the loan with the highest interest rate has actually gone above my original principal balance and I've been paying off my loans for 1.5 years. Additionally, I have asked 4 separate times for an estimated monthly payment on each of my loans if I separate them into their own accounts. Each time they give the BS answer that this will result in losing my paid ahead status. Not once have they actually answered my question.
This company is stealing my money. If my payments were applied properly to the loans with the highest interest rate, it would save me so much money. Instead they apply it to the lowest interest rate and in the long term they will make more profit.
All I am asking at this point is how much would each loan be if I separated each into their own accounts.

Review: [redacted] has consolidated my husband's student loans, as of August 2014. The total balance reflects the original total balance of his loans, as it should, as [redacted] explicitly said they had consolidated all of his loans both verbally and in writing. However, my husband still has a remaining balance with Great Lakes. His total balance now, as stated on nslds.ed.gov, is much higher than the original balance that he had before going through with the consolidation, signaling that we are now paying double for all three of his loans that he has through Great Lakes. I have made countless calls between the two companies over the past three months trying to figure out where the miscommunication is between the two companies, but each one continues to redirect me back to the other company. [redacted] continues to insist that they have consolidated all of my husband's loans and Great Lakes continues to insist that they have never received any consolidation notifications whatsoever.Desired Settlement: 1) We would like for our total remaining balance to be brought back down to what it was originally at before the consolidation.

2) We would either like to be reimbursed for the loans we have been double-paying for over the past 4 months or have it entered as an extra payment on my balance.

Business

Response:

February 19, 2015

Review: I have had nothing but horrible experiences when dealing with Great Lakes. Their Agents are unprofessional & not too knowledgeable when it comes to information. Their overly delayed actions have not only caused me to be unable to start School this semester, they have also taken money not owed to them out of my tax refund. This loan is paid in full but they still have a lien on my taxes. Which takes me back to their LACK of professionalism. Why was this not taken care of when my balance reached 0.00? It makes no sense that they know my account is paid but they did not have this removed. I am so tired of dealing with these people.Desired Settlement: I want my money back that was taken in error, in a timely manner. I have filed a complaint previously where I asked for a letter stating my account has been paid. I still haven't gotten it. (more proof of their lack) I want a copy of the records they have so that I can make sure they did not take more money from me than what was due.

Business

Response:

Complaint ID: [redacted]

Great Lakes ID: [redacted]

Dear

Mr. [redacted]:

Thank

you for contacting us on behalf of Ms. [redacted] and for providing us

the opportunity to address her concerns about her student loan that was guaranteed

by Great Lakes Higher Education Guaranty Corporation (Great Lakes). Her concern

as we understand it is regarding the United States Treasury Offset that

occurred shortly after her loan had been paid in full.

We

are happy to confirm that the Great Lakes Accounting Department will be processing

a refund of $55 for Ms. [redacted] this week.

Her Tax Offset Refund will be mailed to her by the end of the week.

We

sincerely apologize for the frustration Ms. [redacted] has experienced and we hope

this information will be helpful to her.

If you require future assistance from our office, you can reach us

between 8:00 am and 4:30 pm Monday through Friday at ###-###-####, or by email

at [redacted].

Sincerely,

Great

Lakes Ombudsman Office

Review: On 1/3/2015 I contacted Great Lakes to see why I was showing in default on my loan. I was not aware of a balance of close to $40.00 was left. My checks were being garnished then they stopped, I assumed the garnishment was over. They had not contacted me to let me know there was a balance. I found out about the default when I went to apply for financial aid & was denied. So on 1/3 I sent a email. On 1/5/2015 I contacted them by phone & was told I was showing a balance & was directed to their Collection agency (CTI) were I spoke to [redacted] & was told it would take from 1/5-1/9 for them to confirm with their Accounting department the balance owed on the account. As a person who works in the Corporate field I find it absurd that it would take so long to find this information. I then called [redacted] back on 1/9 she said that they still had not heard back from Accounting. I asked to speak to a Supervisor. After being on hold almost 5 mins she came back n the line & stated that a the Supervisors were in a meeting except for [redacted] who was on the phone. She stated that [redacted] would call me back when she was off the phone. I never got a call back. I called back on 1/09 & spoke to [redacted] who connected me to [redacted] informed me there was a balance I told him I was aware & would like to pay it. He stated that he could not take a payment without confirming the amount due with Accounting. He said that he would contact them & see if he could get a response within 30 mins & that he would call me back. He never did,

I contacted [redacted] on 1/12 who finally took my payment.

I contacted Great Lakes on 1/15 & spoke to [redacted] & I asked her how I would get a letter saying that my loan was paid. She informed me that I would need to send a copy of my bank showing the money was taken from my account. I emailed it to them & contacted a woman who's name I forgot to write down and she confirmed that they had my email but that my proof was not accepted because it did not show my account balance before the payment was taken out or after & that it would have to show that in order for them to send my school a letter stating my default was paid. I informed her that my bank does not show that information. She stated that was the policy & there was nothing she could do about the policy. I then sent them a copy of my completed transactions where it showed the payment to them was completed. And requested that my email be forwarded to a Supervisor or Manager. They did not contact me back.

Due to all this run around, lack of professionalisim & error or their part I was dropped from my classes due to not being able to pay. After all of this I am still showing in default & will not be able to attend school until they have updated the National Student Loan Department. This should not have taken 17 days to get rectified.Desired Settlement: I want the National System updated within 1 week I have already given them ample time to correct this.

Business

Response:

Thank you for contacting us on

behalf of Ms. [redacted], and for providing us the opportunity to assist

her.

Review: I was up-to-date on my monthly loan payment and I made an extra payment on my federal student loan, under the amount of $200. The selections for an online payment are "pay account in full", "pay monthly payment", or "other". After I selected "Other Amount", I was presented a field in which I typed the numerical amount I wished to submit. I submitted this payment. I was never asked to verify the amount. I was never asked to confirm. I was not sent an email confirming the amount. I was sent an email that day, 12/10/2014 with a Billing Statement that said nothing more than the total amount due by 12/26 was $0.00, which is correct since I already paid my monthly payment. $28,505.18 was charged to my account on 10/11/14. It wiped my savings and checking account entirely for over 24 hours. I was charged a $35 overdraft fee. I called both my bank, [redacted], and Great Lakes to notify both of them that I never authorized this payment and it needs to be stopped with a note being made on my account that I have requested to do so. The telephone representative from Great Lakes indicated that it was my fault, they have never encountered this problem before, and there was nothing they could do about it until the payment was processed by my bank. He never elevated my call to a supervisor, despite my asking to speak to one. My bank rejected the payment the next day, after having no funds for over 24 hours. Six days later the same exact charge was made to my account, again wiping my account while I was on travel. Again, I have to wait over 24 hours to regain access to my account. I was never told it would happen twice. I never authorized the payment in the first place. I was never notified of the amount that they are claiming I elected to pay until it was charged. They are unethical and unfit to manage the immense responsibility of holding tens of thousands of dollars (or more) of student loans from college graduates.Desired Settlement: Great Lakes should pay for my services to be relocated elsewhere. I cannot trust them with access to my accounts and I would like to have my loans moved to a different provider. I have been without funds for an accumulative 49 hours due to their unethical and lacking management, making me delinquent on other payments as a result.

Business

Response:

December 23, 2014

Hello, I am a single mom, struggling to make it, I called great lakes to delay my loans and keep in good standing with them, I said I would allow them to deduct a ten dollar payment from my account, they also took one for 80.94 and 50.00, I never authorized these payments, they bounced my account, now I have 90.00 in bank fees also. This is sad and theft.

Review: In 2011, I took out a student loan To help pay for my tuition and books at [redacted]. I have actually received two separate loans: Spring semester 2011, and fall semester 2011 Since those two student loans, I have not received any further assistance. Beginning in September 2013, I was contacted by Great Lakes in regards to my "past due" account.

I informed the caller that since I was registered for school, and six months had not passed since I had left school, I was not required to make any payments. Since September 2013, I have received a total of three calls from Great Lakes asking me about how I would like to repay my "past due " account. According to the agreement that I signed in [redacted]'s financial aid office, I would not be required to make payments until six months of not being registered for school. I feel that great Lakes is overstepping its bounds in its collection effort and violating the terms of the agreement.Desired Settlement: Cease and desist with collection attempts

Business

Response:

[redacted]

Complaint ID [redacted]

Great Lakes ID [redacted]

Dear Mr. [redacted]:

Thank you for contacting us on behalf of [redacted] and for providing us the opportunity to

address his concerns in regard to the status of his student loan account.

On May 22, 2013, Mr. [redacted]’s school, [redacted], certified that he was

enrolled half-time through March 11, 2013. The terms of Mr. [redacted]’s Master Promissory Note

state “your 6-month grace period begins the day after you stop attending school or drop below

half-time enrollment.” In accordance with these terms, Mr. [redacted]’s grace period began on

March 12, 2013 and ended on September 11, 2013.

Mr. [redacted]’s first payment was due on October 22, 2013. His regular monthly payment amount

is $50.00 and his account is currently past due $150.00. I encourage Mr. [redacted] to contact us if

he either needs assistance bringing his account up to date or if he was attending classes at

least half-time after March 11, 2013. We will be happy to work with him to lower or suspend his

payments, or to update his enrollment dates upon receipt of the necessary documentation.

I apologize for the frustration Mr. [redacted] experienced. He should feel free to contact our

Borrower Services Department at ###-###-#### with any additional questions or concerns

regarding the repayment of his loan.

Sincerely,

Consumer

Response:

Review: My student loan was discharged due to permanent disability but after I filed the dept of ed. Kept my tax return and I was told since it was taken after I filed it would be returned but I had to wait 3 yrs till my loan was officially discharged. Back in Nov or maybe earlier I contacted the discharge dept. to start everything, they were sent copies of my tax offset and the letter from them stating they were keeping my tax return.. for proof that they took it out after I filed. When I called they told me everything was good, they just had to verify it and it would be returned. I have called several times and contacted you once before. The dept of ed. ( ###-###-#### ) just tells me they are still verifying the information but it has been about 9 months .Desired Settlement: DesiredSettlementID: Refund

I would like them to refund my tax return as promised. About 2,500

address was [redacted]

Business

Response:

Thank you for contacting our office on behalf of

Ms. [redacted]

Review: I have been charged interest on my subsidized loans while I was attending New Mexico State university full time. While Studying abroad for spring 2013, I filed an income based repayment plan which pays the interest for the first three years of the plan. I was informed that I lost my grace period the first semester I studied abroad, but later I was charged interest before then when I attended NMSU full time and interest for the first semester I studied abroad while I was forced to use up my entire grace period before being permitted to fill out an IBR. According to page 8 of the IBR form, the law states that for the first three years of the IBR plan the government pays interest no matter what, but GLBS charged me interest summer and fall of 2014. Therefore, GLBS has double dipped and charged me illegally $1,013.50 and must refund the money. I will pay that amount to hire an attorney because I value my time and education. Also, I have overpaid several times my subsidized loans and GLBS lost the payments so that I had to pay it off repeatedly.Desired Settlement: I would like for my loans to be corrected to refund to me the $1,012.50 in interest that was double dipped from all of my subsidized federal loans by Great Lakes since the government has already paid it off. I am resubmitting my enrollment status for the semesters I was back charged interest for and lost my grace period for while attending NMSU full time, but I would like for GLBS to abide by the law and not charge me for additional times when I was in school more than half time. I value my time and education. I have always been in college since taking out my first loan, in my grace period, and on an IBR while studying abroad and after studying abroad until fall 2015. I am attending NMSU more than part time spring 2016.

Business

Response:

Thank you for contacting us on behalf of Ms. [redacted] and for providing us the opportunityto address her concern regarding interest accrual in relation to her enrollment at New MexicoState University (NMSU), as she believes the dates the in-school deferment was applied to herGreat Lakes’ accounts are inaccurate.Ms. [redacted]’s account was reviewed after receiving her inquiry and it appears that her concernwas addressed during a conversation she had with a Specialized Account Manager on January5, 2016. During this conversation, Ms. [redacted] indicated that NMSU failed to report herenrollment information accurately, and that she is in the process of obtaining and providingupdated information. Once received, we will apply the in-school deferment according to thedates NMSU certifies that she was a half-time student. Please note that if the in-schooldeferment is applied differently than the dates currently on file, any necessary interestadjustments on Ms. [redacted]’s subsidized loan balances will be made at that time.Additionally, to verify the dates NMSU has currently certified Ms. [redacted] as being a half-timestudent, we reviewed the National Student Loan Data System (NSLDS), ED’s central repositorythat houses all federal student loan information, as well as the enrollment information wereceived from NMSU. At the present time, according to the information reviewed, the in-schooldeferment has been correctly applied to Ms. [redacted]’s accounts.According to the most recent enrollment information certified by NMSU, Ms. [redacted]’s accountsare currently in an in-school deferment, effective January 15, 2015 through May 15, 2017.Please keep in mind that these dates are subject to change, as we are required to update astudent’s enrollment status with the most recent information certified by their school. For herreference, we have attached the document NMSU’s Registrar’s Office provided us, as it outlinesher enrollment history and shows the dates NMSU considered her to be at least a half-timestudent. Furthermore, to provide confirmation that the in-school deferment was applied to Ms.[redacted]’s accounts as certified by NMSU, we have attached the status history letters we emailedto her on January 4, 2016.I hope that Ms. [redacted] finds the information provided helpful. If she has any additional questionsor concerns that need to be addressed, she may contact a Specialized Account Manager directlyat ###-###-#### – Option 1. She may also contact our Borrower Services Department with anyquestions or concerns at ###-###-####, [email protected], or the address below:Great LakesP.O. Box 7860Madison, WI 53707Sincerely,

Review: I went back to school for a year and they put my loans in the deferment. However, I have unsubsidized loans, and the interest accrues everyday. My accounts had been shown that the deferment end in 2017, but they abruptly (within 24 hrs) changed the status to "in-payment" as soon as my school notified them that I'm not in school anymore. After the changed status, they've capitalized the interest and sent me the e-bill in two days. FYI: I know that I have to make payments soon after I finish the school, but I just have no idea when.Desired Settlement: They should have given me a chance to pay all the accrual interest off before capitalized into the principle amount by notifying me a day or two in advance of their intention to do so. An organization that cares its customers should act on a good faith and use a clear communication. The reason I want to pay off the interest is to save some money on federal and state taxes for this year when I file the income taxes.

Business

Response:

Thank you for contacting us on behalf of Mr. [redacted] and for providing us the opportunity to address his concern regarding his interest capitalizing after his Direct Loan Program (DLP) student loan accounts with the U.S. Department of Education (ED) entered repayment after Great Lakes received notification he was no longer attending school as at least a half-time student.At Great Lakes, our goal is to assist our borrowers with meeting their loan obligation(s) in any way that we can. However, as we assist them, we are required to comply with all federal guidelines that govern the DLP, as set forth by ED, in addition to the terms and conditions detailed within their Promissory Note(s), or loan agreement(s). Interest rates, forbearance eligibility, loan forgiveness and discharge, repayment options, as well as deferment eligibility are all outlined within the federal guidelines.In accordance with the federal guidelines, Great Lakes is required to update a student’s enrollment information with the most recent certified information we receive. This information can be provided by either the school or the student themselves. Stated within the Borrower’s Rights and Responsibilities Statement of Mr. [redacted]’s loan agreements, is that if he stops attending school or drops below half-time enrollment, he will notify the proper parties, such as his servicer.According to our records, Mr. [redacted] was no longer a half-time student as of May 20, 2015. Unfortunately, we did not receive notification from Mr. [redacted] or his school that he was no longer a half-time student until July 16, 2015. Consequently, since both of Mr. [redacted]’s accounts had already utilized their one-time 6 month grace period, his accounts entered repayment and the unpaid interest capitalized, which is in accordance with his loan agreements. This is the reason Mr. [redacted]’s accounts went from deferment into repayment so quickly.I understand that this is not the answer Mr. [redacted] was hoping for and apologize for the frustration he has experienced. If he has any questions or concerns, he may contact our Borrower Services Department by phone at ###-###-####, through email at [redacted], or by mailing:Great Lakes[redacted]Sincerely,Aimee S[redacted]Great Lakes Education Loan Services, Inc.

Consumer

Response:

Review: I have two accounts and a total of 5 loans from when I went to college. After college I begin paying extra amount each month in hopes to have my loans paid off faster. Here is the problem that they refuse to fix despite their representatives and even agreed with me on - how payments are applied. According to their website there are rules they are required to follow (https://www.mygreatlakes.org/educate/knowledge-center/how-payments-are-applied....⇄ My issues stems from the part where my payments are not all going first to the loan with the highest interest rate but spread across each loan. On the webpage on how the payments are applied it says: "Did you know there are rules in your student loan agreement we're required to follow when we apply payments to interest, late fees (if any), and your unpaid balance? This means it's not possible for you to direct a payment to be applied entirely to the unpaid balance of a loan. For all loans other than federal loans with income-driven repayment (IDR) plans, payments must be applied first to late fees, if any, then interest, and finally the unpaid balance. For federal loans with an IDR plan, payments must be applied first to interest, then late fees, and finally the unpaid balance."

And it also says: "However, when it comes to extra payment amounts (see examples below), after all interest and late fees due have been satisfied, we automatically apply the extra amount to the unpaid balance on the loan with the highest interest rate (if there are multiple loans in your account). If you don't want the extra payment amount to be applied this way, contact us. If you, instead, want an extra payment amount to be applied to a specific loan, you must provide us with the loan's account number and interest rate. If multiple loans in the account have the same interest rate, and you want an extra payment amount applied to one and not the other, please contact us to ensure the payment is applied to the loan you want."

So how I took from it was that after I paid my interest and late fees (which I had none) all the extra cash that i'm paying in is suppose to be going into the loan with the highest interest rate! The account management guy kept trying to tell me that the rules they are suppose to follow does not work that way. They first have to take the minimum payment on both accounts , then interest, then any late fees before the money be applied to the account with the highest interest rate. I spent half hour arguing with him and even with him agreeing saying I was right. He refused to do anything different because my interpretation of it was wrong. Here is the kicker, according to the accounts online I am paid ahead on one account for a year and the other about six months or so. He also elaborated that despite being paid ahead, any payments I make will first have to do a minimum payment of both accounts of that month before I can even directly put it to my loan I want it to go to. And to just show how much these guys are greedy I sent in a check with a large sum targeting a certain loan - wrote all the details needed for them to know which loan it was suppose to go to, even wrote a letter and extra details and explained exactly what this money to be applied on they mess that all up send 1 grand of the money to a loan on a completely different account and only $500 to the one I requested to begin with! So even following their own rules that they fail to included on the "how payments are applied" page was still wrong! I had to call them up to fix it (I was actually pre warned from a representative to watch it and make sure it goes into the right account and call them when it doesn't. Sounds like its happening to not just me but many other people. Who knows how much money they managed to scam out of people..Desired Settlement: I would love to have a lawsuit settlement. But seeing that is time consuming and costly I would leave that as a last resort. So my other desired outcome would be for them to go back into all my payments I made in the past and fix every single one of them so that all my payments after interest would be go directly to the principle on loan with the highest interest rate and not spread across each loans I have. Every payment should also be effectively be applied on the date it was initially made which would mean that every interest payment I made would be lower and should be refunded or credited to my loan (with the highest interest rate). Also, if they plan to to keep using their old practice for now on they must update their "how payments are applied" page with CLEAR information saying that EVERY payment is first goes to their minimum required payment, then interest, late fees, etc.

Business

Response:

June 2, 2015

Great Lakes makes it very difficult to pay off loans. I have attempted, 3 times now, to pay off my highest interest loan first ( one of three loans with G.L.) . The first customer service rep I spoke with said , in order to do this, I would have to make a general payment of the loan balance amount online that would be applied to all 3 loans, and then I would have to write a request to have the payment reapplied to the highest interest loan after the payment had been processed.
Before I did this, I called to confirm this information through another rep. This time, I was told I could just pay off the highest interest loan over the phone. I specified I only wanted the payment to be applied to the highest interest loan. Over the phone seemed to be much less hassle, so that's what I did.
Months later I checked my G.L. balance to find that, while the majority of the payment was applied to the highest interest loan, they also applied some of the payment to the other two.... keeping a small balance in the highest interest loan so that they could still collect on it.
I was told that my payment had been processed incorrectly, and a request would have to be submitted to reverse it and be reapplied. I said instead of waiting for the request to be processed, I would immediately pay the remaining balance on the high interest loan. The rep told me she could not do that until this month's auto loan payment had been processed.
I will call again tomorrow.....

Review: This account is listed on my credit report as negative activity how ever I have never done business with this company. They recently seized my tax return of over $7000 without any record of debt, because there is none. When I go on their website to register online to gather information it comes up "We're sorry, but we were unable to find an active Great Lakes website account associated with the SSN"! How is this even possible that a company can take $7000 without any oversight. I do not even have any record of a FAFSA application. You cannot receive any federal financial aid without a FAFSA application!Desired Settlement: The line of negative credit needs to be removed. The tax refund amount of $7051 needs to be returned to the IRS for proper issuance (the legal process has already been started with the IRS how ever Great Lakes cooperation would expedite the process and correct the wrong done). If Great Lakes still believes that their statement of charges is correct then they should send me a copy of the credit application, statement of understanding, and a billing statement from the school showing that bills w ere paid by Great Lakes on my behalf.

Business

Response:

Dear Mr. [redacted]:

Review: My government student loans are monitored by Great Lakes. On their website it says that extra payments will go to the highest interest rate loans. That was initially the case, so I called them and asked them if they could allocate my payments toward my highest interest rate loans like their website said.

After they said that they would, the reallocated all my extra payments to one of my loans that wasn't the highest percent. They put ALL of them toward my 4.25% loan, and increased my 6.55% loan balance, costing me more interest. This is exactly what I asked them not to do, and goes against their payment policies they advertise on their website. Its also costing me more money.Desired Settlement: I want them to reallocate all of my extra payments to my highest interest rate loans, and reimburse my account of all interest that this has caused my account to accrue due to them not allocating my payments as their website said, and then after I asked to reallocate to my highest interest rate loan they didn't. I want my highest interest rates loan closed (as I have paid more than enough for them to be paid off).

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. Hello. I filed a complaint but the company has resolved the issue. My complaint can be closed.

Review: I was under the impression that my student loan through Great Lakes had been deferred. No effect on my credit score. It came up when I attempted to trade my car in that my credit score had gown down 200. I was unable to trade my car with that low of a score.Desired Settlement: I would like it taken off my credit report and for my loan to be deferred.

Business

Response:

Thank you for contacting us on behalf of Ms. [redacted] and for providing us the opportunityto address her request, which is for Great Lakes to stop reporting and remove her student loan,which we service on behalf of her lender, the U.S. Department of Education (ED), from her creditfiles at the nationwide Credit Reporting Agencies (CRAs).After receiving Ms. [redacted]’s inquiry, we were unable to identify the deferment referenced shethought her account was under. According to our records, the last deferment Ms. [redacted] utilizedwas the unemployment deferment from April 12, 2014 through October 11, 2014. In order to utilizea deferment, a borrowers needs to meet the eligibility requirements outlined within the federalguidelines. Because of this, the unemployment deferment can only be placed on a borrower’saccount for a maximum of six months. At the end of the six months, a borrower needs to reapplyand confirm that they still meet the eligibility requirements necessary to qualify and utilize theunemployment deferment. Unfortunately, Ms. [redacted] did not submit a renewal application and heraccount entered repayment.At the present time, our records indicate Ms. [redacted]’s student loan is 275 days past due. If theamount of her monthly payment, which is currently $419.97, has created a hardship, it is importantfor Ms. [redacted] to realize that there are several repayment and assistance options available to helpher lower or postpone her payments. To discuss these options and save her loan from defaulting,we highly recommend that she contact our Borrower Services Department using the informationlisted below. Depending on her preferences, our website, mygreatlakes.org, also provides detailedinformation to help her determine what option may be the best fit for her situation. No matter whatoption she decides upon, we encourage her to contact us as soon as possible so that we mayassist her in bringing her loan up to date.Concerning Ms. [redacted]’s request to remove information from her credit files, we must first pointout that the Higher Education Act of 1965, as amended, requires that Great Lakes report thestatus of all serviced student loan accounts to the nationwide Credit Reporting Agencies.Additionally, we must also point out that the Fair Credit Reporting Act requires that this informationbe reported accurately and objectively. We are audited to ensure our compliance with theserequirements. Given the above points, perhaps the most important fact for Ms. [redacted] to keep inmind is that we are required, as long as we service her loan, to report her student loan informationto the CRAs.In order to verify the accuracy of our credit reporting, we re-evaluated our past reporting towardMs. [redacted]’s account to ensure no errors were made that would lead to, or result in, inaccuratedelinquency reporting (such as misapplication of payments). Our review confirmed that no sucherrors were made. Regrettably, because the credit reporting done on Ms. [redacted]’s account isaccurate, we are unable to make any adjustments to it.Although we are unable to approve Ms. [redacted]’s request, a noteworthy point disclosed onMyfico.com is that individuals who were delinquent in the past are able to improve their FICOscore by paying their loans on time, and the longer an individual pays on time, the more theirFICO score should increase.I understand that this is not the answer Ms. [redacted] was hoping for and apologize for anyfrustration she has experienced. If she has any questions or concerns, she may contact ourBorrower Services Department at ###-###-####, [redacted], or the addressbelow:

Review: Great Lakes reported my account as a collection account in June of 2010. However, every month they are continuing to report late payments on going when the rule of credit reporting is once an account is reported as a collection account, the status on payments should not be reported on-going after the date it was determined to be collections. This is erroneous reporting of the credit file. Great lakes will not contact me or discuss the loan since it is now handled through a third party... the third party cannot control what Great Lakes is reporting. Therefore I am stuck in a vicious cycle. The Fair Credit Report Act indicates this practices is not permitted by law and Great Lakes continue to circumvent the rule and will not correct.Desired Settlement: All late payment dates reporting to Equifax after June of 2010 should be removed.

Business

Response:

Stacy Juedes Lead Trade Practice ConsultantRevdex.com of Wisconsin10101 W Greenfield Ave #125Milwaukee WI 53214 Dear Ms. Juedes: Thank you for contacting us on behalf of Mr. White and for providing us the opportunity to address his concerns regarding his loan that is guaranteed by Great Lakes Higher Education Guaranty Corporation (Great Lakes). We are happy to report that Great Lakes has provided a detailed response to Mr. White’s concerns today. We again thank you for contacting us and for giving us an opportunity to be of assistance. If additional information is required, please by all means, contact us. You can reach our office between 7:00 am and 4:30 pm Monday through Friday at [redacted]. Sincerely,*

[redacted]Great Lakes Higher EducationOmbudsman Specialist

Unable to access my account online without providing an email address and agreeing to receive ALL notices, bills, statements and correspondence electronically, which I do NOT wish to do. I should be able to access my account without regard to the method of communication chosen for receipt of statements and other information. I should not be forced to conduct business online.

I hope this review prompts a call from the CEO to have him hear what I have been through! The service at this company is the worst I have ever experienced in 53 years!

When my loan was taken over by Great Lakes from direct loans they automatically doubled my payment saying they got poor information. It took me six months to get my loan straightened out after contacting the state attorney generals office and finally I was helped by the Ombudsman office of the Federal Loan program. This month another loan has gone into payment and I have decided that I should pay this loan off rather than deal with this company on another loan. I wrote on the web site, requesting the exact payoff and method so I could close this loan. I got a response via email basically saying they were so busy they will get back to me in 5-7 business days.

Review: I have notified Great Lakes that I am in school half-time, and they are refusing to place my account in deferment. I am currently taking 5 credit hours at the University of [redacted] and 1 credit hour at [redacted] for a cumulative total of 6 hours.

I originally notified them around the beginning of January of 2014, and the immediately placed my account in deferment and sent me an e-mail validation. Since then, KU required me to complete my exit interview due to falling under 6 credit hours with them (they would not take [redacted] into consideration), and Great Lakes took my account out of deferment. Now they state each college has to fill out the "In-School Deferment Request," but the wording in the request is poor. It specifically asks the signing college if the student is enrolled half-time, which I am not at the individual schools; it is cumulative. Therefore, they will not sign the paperwork. Moreover, when I have explained this to Great Lakes in writing, now almost three times, they keep referring me back to the "in-School Deferment Request" telling me it needs to be signed. It is like talking to a brick wall. This lender is required by law to place my account in deferment if I am in school half-time, and with the paperwork they keep referring me to, they are making this task impossible.

Thank you for your help.Desired Settlement: They need to place the accounts in deferment or forbearance.

Business

Response: