We, at Great Lakes and as a federal loan servicer, do not determine the amount of a student’s disbursements or how they are allocated, which is Mr***’s primary concernThose are both done by the schoolWe have provided all pieces of information possible and detailed all options for Mr*** to consider, and unfortunately there is nothing further that we can do or help himMoving forward, and as stated in or prior responses, Mr*** will need to contact his school for any additional information necessary for him to resolve his complaint. Sincerely, Aimee S*** * *** ***Great Lakes Educational Loan Services Inc
Thank you for contacting us on behalf of Mr*** *** a second time and for providing usthe opportunity to further address his concern related to his January 27, complaintWeunderstand his concern to be regarding payments that were submitted to an incorrect address,which were being processed by Great Lakes and which resulted in payments being reflected onhis account as pending prior to them being returned to him.In order to fully address Mr***’s additional concern, it is important to again point out thatuntil recently Great Lakes was able to process and forward payments that were sent to anincorrect payment address (Great Lakes address instead of the address used by the U.S.Department of Education (ED))This process, of processing and forwarding payments to theappropriate payment address resulted in Great Lakes reflecting payments on his account thatwere processed and not yet forwarded to ED.Payments received at the Great Lakes’ processing facility are processed through an automatedsystem and routed to the borrower’s account, which is why payments may have reflected aspending in Mr***’s payment historyAs Great Lakes was informed by ED to discontinueforwarding funds received and processed at an incorrect address, we have no choice but to returnsuch payments to the remitter, which is what occurred with Mr***’s most recent payments.We hope Mr*** will accept our apology for any inconvenience he has experienced, andwould also like to reconfirm that he may follow up with our Borrower Services Department whenhis returned payments are resubmitted to request they be backdated to their original dates ofreceipt.He can reach a Borrower Services Representative by phone at ###-###-####, by email [email protected], or by mail to the address below:We again thank you for giving us the opportunity to further address Mr***’s concern andhope that he finds the additional information helpful.Sincerely,***, ***
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr
***:
Thank
you for contacting us on behalf of Ms*** *** (*** ***) 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 the current credit reporting by Great
Lakes
In
our review of the reporting of Ms***’s account by the Credit Reporting
Agencies (CRAs) we did indeed detect a duplication being reported by
TransUnion. All other CRAs reporting were
seen to be accurate.
We
are happy to report that we are currently working with TransUnion to remedy the
inaccuracy in order for them to report the correct information. We ask that Ms*** allow two weeks for
this process to be completed. She should
see the correction the next time she checks her credit file at TransUnion in
two weeks.
We
sincerely apologize for the frustration Ms*** has experienced with the credit
reporting process and we hope this information will be helpful to her. If you require future assistance from our
office, you can reach us between 8:am and 4:pm Monday through Friday at
###-###-####, or by email at ***.
Sincerely,
Joe
J***
Great
Lakes Ombudsman Office
Dear Mr***:Thank you for contacting us on behalf of Ms*** *** and for providing us furtheropportunity to address her concerns about her student loans that are stillguaranteed by Great Lakes Higher Education Guaranty Corporation (Great Lakes)and were/are serviced by *** Solutions, Incorporated (***)Her concern,as we understand it is that some of her loans have not yet been forgiven due toher service related disability. Our office has contacted the servicer of the loans in question *** as well asGreat Lakes Claims Department to assist in resolving this issue. What we were able to ascertain from ourinvestigation was that *** filed the Total and Permanent Disability (TPD)Loan Discharge Claim to Great Lakes but it was returned to *** on August 6,2015. The reason for the claim rejection was due to *** using an incorrect interest rate causing an incorrect loanamount to be submitted. *** has/had days to refile the claim from August 6, 2015.We are pleased to inform you that some progress has been made on the TPD Claim,although the issue is not yet completely resolved. *** has made the necessary correctionsand has resubmitted the TPD Claim to Great Lakes on September 8, 2015. The next step will be for Great Lakes Claims topay a TPD Claim to ***, at which time the loan/s in question will show thecorrect status of having been approved for TPD discharge due to Ms***’sservice related disability. Great Lakes now has days from September 8, to pay the claim to ***Once Great Lakes pays the TPD Claim to ***, their system will then show that allof the loans that they serviced on behalf of Great Lakes the guarantor havebeen approved for Total and Permanent Disability (TPD) Loan Discharge due toher service related disability. We again would like to thank Ms*** for her service and dedication to ourcountry and sincerely apologize for the frustration Ms*** has experienced andhope this information will be helpful to herWe will keep you informed as tothe progress of the case. In the meantime, if you require assistance from our office, you can reach us between8:am and 4:pm Monday through Friday at ###-###-####, or by email at***. Sincerely,*** ***Great Lakes Ombudsman Office
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity to address her request, which is for Great Lakes to remove the delinquencies reported toward her credit files.To begin, we must first note that the Higher Education Act of requires Great Lakes to
report the status of all serviced student loan accounts to the nationwide Credit Reporting Agencies (CRAs)Additionally, the Fair Credit Reporting Act requires that this information is reported accurately and objectivelyIt’s also important to note that we are audited to ensure our compliance with these requirements.With this in mind, we reviewed Ms***’s account to verify the accuracy of the information we reported toward her credit files, and to ensure no errors were made that lead to, or resulted in, inaccurate delinquency reporting (such as misapplication of payments)This review confirmed that all of the information we reported to the CRAs, on behalf of Ms***, was accurateOur review further confirmed that prior to requesting forbearance on June 14, to bring her account current, her account was days past due.With regards to the conversations Ms*** referenced, our records indicate that she had five conversations with our Borrower Services Department prior to April 2016, which appears to be when she brought her concern to our attentionThese conversations took place on the following dates; July 23, 2014, March 2, 2015, June 2, 2015, October 6, and December 23, We listened to call recordings to verify Ms***’s assertion that she was advised that her account would not be reported to the CRAs unless it exceeded days past dueOur review of these phone calls verified that she was not told that no adverse information would be reported to the CRAs prior to her account exceeding days past dueShe was actually advised that her account would be not be considered in default unless it exceeded days past due.Regrettably, for the reasons mentioned above, even though we empathize with her situation, we are unable to make any adjustments to our past credit reportingNevertheless, we wanted to share with Ms*** an important point listed on Myfico.com, which indicates that individuals who were delinquent in the past are able to improve their FICO score by paying their loans on time, and the longer an individual pays on time, the more their FICO score should increase.We understand that this is not the answer Ms*** was hoping for, and apologize for any frustration she has experiencedIf she has any additional questions or concerns, she may contact our Borrower Services Department by phone at ###-###-####, by email at [email protected], or by mailing:Great LakesP.OBox 7860Madison, WI 53707Sincerely,*** ***
Thank you for contacting us on behalf of Ms*** *** and for providing us theopportunity to address her concern regarding the Economic Hardship Deferment she applied forthat has yet to be approved.I am pleased to advise that we were able to approve Ms***’s Economic HardshipDeferment
The deferment was applied to her account today, February 12, 2016, with the effectivedates January 1, through December 31, 2016.After receiving Ms***’s inquiry, we reviewed the deferment applications she submitted inJanuary Our review confirmed that the documentation she provided on January 7, 2016,the date she submitted her initial deferment renewal application, was sufficient to meet thedeferment’s eligibility requirements.Please note that we appreciate the fact that Ms*** took the time to bring her concern toour attentionTo prevent such issues from arising in the future, as our goal is to provide excellentcustomer service, we have forwarded her concern to the appropriate parties for review andcoaching purposes.I genuinely apologize for the frustration Ms*** experienced, and hope the informationprovided alleviates her concernIf she has any additional questions or concerns, she may contactour Borrower Services Department at ###-###-####, ***, or theaddress below:Great Lakes*** *** ***
*** ** ***
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
Regards,
*** *** I'm still a little confused as to why I was sent a letter in July of this year saying I defaulted, again, on a loan, and why my Federal refund check was not offset in 2015. I also need to understand about the "borrower payment" showing in January of through February of
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.I spoke the Department of Education Umbusment office and a representative provided me with a contact number to Great Lakes Accounts Resolution and I spoke with Neal Neal reviewed the same jargon of information and he stated that I am responsible for the payment of $and that money is divided between my loans The discrepancies is for that I made a total of five $payments The excess WAS NOT applied as they so explained, they allotted the allocation of my monthly payment amongst the total bill of $ For example, two bills combined makes up the $($and $125.32) and they reappropriated the excess funds based on the payment of $Now based on the monthly statements that I received, and avaliable online for my viewing pleasure, shows amounts under the heading of paid ahead Now I have been told by Manager Dick that the value listed under that heading are "phantom credits" and that it is not a true representation of the money I have paid, but how can that be If the documents Great Lakes sends out and clearly states these are amounts paid ahead then why are they not accurately reflected towards my balance Now answer my question, where is the money that is reflected under the heading of paid ahead reflected in the payments history- see attached file.
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
Regards,
Benita ***
Tell us why her Stacy ***Lead Trade Practice ConsultantRevdex.com of WisconsinW Greenfield Ave #125Milwaukee WI 53214 Complaint ID: ***Reference ID: 00-4563941 Dear Ms***, Thank you for contacting us on behalf of MrKyle A
*** and for providing us the opportunity to address his concern regarding his student loanMr***’s concern as we understand it that he had requested deferment or forbearance in June of and that the loan should not be in default. By way of some background, on December 26, Great Lakes Higher Education Guaranty Corporation (Great Lakes), as the guarantor, paid a default claim to Nelnet Loan Services, IncorporatedThis was the result of their not receiving payment(s) or a completed request for deferment or forbearance to prevent Mr***’s loan from defaulting. Based on the terms of his signed Promissory Note, when his student loan defaulted, the balance became due and payable in full. Ultimately, the servicing of Mr***’s defaulted Stafford loan has been assigned to Performant Recovery Incorporated (Performant). With that being said, we contacted Performant the loan servicer to verify the conversations that possibly transpired between them and Mr*** in June of 2016. Performant informed us that they have not had any telephone contact with Mr***, nor have they received any written correspondence from him. It is also important to note that since his Federal Family Education Loan Program Stafford loan is in default status there is no option for either deferment or forbearance. Additionally our records show that Mr*** has taken advantage of a loan rehabilitation to resolve a prior default. As such his options to resolve his current default are limited because changes to the federal regulations as of August 14, no longer allow borrowers to rehabilitate defaulted loans more than once. One option to avoid possible Administrative Wage Garnishment (AWG) payments and tax offsets would be to enter into a voluntary, fully amortized monthly payment plan to resolve the account in the allowable years. Based on Mr***’s current balance, Performant indicated to us that would be approximately $per month. The Debt Collection Act of and the Debt Collection Improvement Act of authorize the USDepartment of Treasury to offset any eligible Federal payments of individuals indebted to the USGovernmentAs such, Mr***’s defaulted student loan(s) remain certified for Treasury offset until the account is paid in full or he has established and maintained repayment arrangements. Mr*** may be able to avoid future Treasury Offsets if he contacts his loan servicer Performant, and makes and maintains satisfactory agreed-upon repayment arrangements. Mr*** may reach a Performant representative at 1-800-927-7667. Another option available to satisfy a defaulted account is to consolidate. Mr*** can attempt to consolidate through the William DFord Direct Loan Program. A Direct consolidation is when the U.SDepartment of Education (ED) issues a consolidation loan that pays a borrower’s outstanding student loans. They then repay the consolidation loan directly to the ED. Mr*** can obtain additional information on this program; by calling 800-557-or visiting their website at http://www.loanconsolidation.ed.gov/ * It is important to understand that Mr*** will remain responsible for the collection fees should he decide to rehabilitate or consolidate his loans. We again thank you for contacting us and for giving us an opportunity to be of assistanceIf additional information is required, please by all means, contact usYou can reach our office between 7:am and 4:pm Monday through Friday at 866-486-7140, or by email at [email protected]. Sincerely, Joe ***Great Lakes Higher EducationOmbudsman Specialist e
June 2,
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr
***:
Thank
you for contacting us on behalf of Mr*** *** and for providing us the
opportunity to address his concern regarding the application of payments toward
his Direct Loan Program (DLP) and Federal Family Education Loan Program (FFELP)
student loan accounts with the U.SDepartment of Education (ED)
Mr
***’s DLP and FFELP loans are federal loansAs such, Great Lakes, his servicer,
is contractually obligated to abide by all federal guidelines set forth by EDOur
purpose is to assist Mr*** with the repayment of his loans in any way that we
canHowever, as we assist him, we are required to comply with all guidelines
that govern his DLP and FFELP loansInterest rates, forbearance eligibility,
deferment eligibility, loan forgiveness and discharge, repayment options, as
well as payment application are outlined within the federal guidelines
Mr
***’s federal loans are also simple interest loans; meaning interest accrues
daily based on his interest rate and principal balanceThe calculation used to
determine the amount of interest that accrues per day is as follows:
Unpaid Principal Balance x Interest
Rate x Number of Days at that Balance
Divided by
or (Days in a Year)
The
federal guidelines require loan servicers to apply regular monthly payments
made towards a federal loan first to any late charges (if applicable), then to
accrued interest, and then the remainder, if any, is prorated and applied to
the principal balance of the loans within the accountIf a payment is larger
than the regular monthly payment, the overpayment is applied to the principal
of the loan with the highest interest rate, assuming all outstanding accrued
interest is paid
When
extra payments are received they will be applied in this same mannerProvided
the regular monthly payment amount has already been madePlease note that all
accrued interest must first be paid prior to any payment amount being directed
toward the principal balance
Making
extra payments, or overpayments, generally results in a borrower’s loan being
“paid ahead.” This paid ahead status does not affect how their payments are
applied, which is as described above as of the date the payment is received
Instead, it means that a borrower won’t be considered delinquent if they stop
making payments until they are no longer paid aheadIt is important for Mr
*** to realize that he is still reducing his principal balance, which appears
to be his intention
It is
equally important for him to remember that even if he is paid ahead of his
current payment schedule and technically not required to make a payment,
interest does continue to accrue, so it is to his advantage to continue to make
monthly paymentsThere are no prepayment penaltiesBy making payments in
addition to his monthly payment, he will reduce his principal balance faster
Correspondingly, a lower principal balance means less interest will accrue
which will ultimately save him more money over the life of his loan
After
receiving Mr***’s inquiry, we reviewed his accounts and have confirmed that
all of his payments were applied accuratelyMoving forward, we are pleased to
notify Mr*** that any payments he makes in excess of his required minimum
monthly payment, after interest has been satisfied, will be automatically
reapplied as he referenced, which is to reduce the highest interest rate loans
within his accounts, until he advises us differently
Once Mr
***’s payment(s) have been posted to his account, if they have not been posted
as he intended, they will then be reappliedThe reapplication process may take
up to to business daysPlease be assured that regardless of the processing
time involved in reapplying the payment(s), funds received will be applied the
date they were scheduled to be creditedThis can be verified by checking his
payment history on our website, mygreatlakes.org
I regret
the frustration Mr*** experienced and hope that he finds the information
provided helpfulIf he has any additional questions or concerns about the
repayment of his loans, he may contact our Borrower Services Department by
calling ###-###-####, emailing ***, or by mailing:
Great Lakes
** *** ***
*** ** ***
Sincerely,
Aimee S***
*** * *** ***
Great
Lakes Educational Loan Services Inc
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
I do not agree with Great Lakes' responseIt is unfortunate, because I also did not have a choice in having them to service my loansI will have to find a way to refinance my loans ASAP in order to not deal with them any longerIt is to no surprise why they have a 1/star rating in most consumer review websites. I do not agree that I made a payment on 11/to be paid out 11/9, I wanted the payment to be applied on 11/when I posted it to my online accountSince I made my payment on 11/6, the amount I paid should have been to cover the interest paid up to that dateI am already in a program to defer my payments due to my low incomeAt this rate, I will never finish paying off my loans since I am just paying interest.
Regards,
***
Thank you for contacting us on behalf of Mr*** *** and for providing us the opportunity to address his concern regarding the application of payments toward his Stafford loan with the U.SDepartment of Education.After reviewing Mr***’ account, it appears that his concern was addressed
directly during the conversation he had on July 29, with our Escalation Team, and the follow up conversation he had with our Borrower Services Department on August 8, 2016.We would like to apologize to Mr*** for any frustration he experiencedIn the event that Mr*** has additional questions or concerns, to ensure they are thoroughly addressed, we ask that he contact our Escalation Team directly by phone at ###-###-####, or by email at [email protected],
July 27,
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr***:
Thank
you for contacting us on behalf of Ms*** *** and for providing us
the opportunity to address her concern about interest accrual, and her request
for information detailing interest paid on her Direct Loan Program (DLP) student
loan accounts with the U.SDepartment of Education (ED)
Great
Lakes is currently servicing Ms***’s DLP Consolidation loan made in
June 2010, and previously serviced her
DLP Stafford loan that was made in September 2013, which was paid in-full June
5, Ms***’s Consolidation loan and Stafford loan are federal loans
As such, Great Lakes, as her servicer, is contractually obligated to abide by
all federal guidelines governing the federal loan programs as set forth by EDGreat
Lakes purpose is to assist Ms*** with the repayment of her loans in
any way that we canHowever, as we assist her, we are required to comply with
all guidelines that govern her DLP loansInterest rates, forbearance
eligibility, deferment eligibility, loan forgiveness and discharge, repayment
options, as well as payment application are outlined within the federal
guidelines
Ms***’s
federal loans are simple interest loans; meaning interest accrues daily based
on her interest rate and principal balanceThis is also noteworthy because it
is uniform for all federal student loan borrowersThe calculation used to
determine the amount of interest that accrues per day is as follows:
Unpaid Principal Balance x Interest
Rate x Number of Days at that Balance
Divided by
or (Days in a Year)
The
federal guidelines require loan servicers to apply regular monthly payments
made toward a federal loan first to any late charges (if applicable), then to
accrued interest, and then the remainder, if any, is prorated and applied to
the principal balance of the loans within the accountIf a payment is larger
than the regular monthly payment, the overpayment is applied to the principal
of the loan with the highest interest rate, assuming all outstanding accrued
interest is paid.
When
extra payments are received, they will be applied in this same manner, provided
the regular monthly payment amount has already been madePlease note that all
accrued interest must first be paid prior to any payment amount being directed
toward the principal balance
Making
extra payments, or overpayments, generally results in a borrower’s loan being
“paid ahead.” This paid ahead status does not affect how their payments are
applied, which is as described above as of the date the payment is received
Instead, it means that a borrower will not be considered delinquent if they
stop making payments until they are no longer paid ahead
It is
equally important for Ms*** to remember that even if she is paid ahead
of her current payment schedule and technically not required to make a payment,
interest continues to accrue on her account, so it is to her advantage to
continue to make monthly paymentsBy making payments in addition to her
monthly payment, she will reduce her principal balance fasterCorrespondingly,
a lower principal balance means less interest will accrue which will ultimately
save her more money over the life of their loan
Attached
are payment and interest rate histories so Ms*** can see the amount of
interest she paid with each payment made toward her Stafford and Consolidation
loansUnfortunately,
there is not a computerized report detailing the interest accrual that we could
provide Ms***For an example of how to calculate the amount of
interest that is accrued between payments, which appears to be what Ms
*** is concerned with, we will detail how her June 17, payment of
$4,was applied toward her Consolidation loan
The
interest rate on Ms***’s Consolidation loan is currently 6.25% and her
principal balance prior to the aforementioned payment was $137,270.64, of which
$79,was unsubsidized and $58,subsidizedDetailing the separate
balances is necessary because she is currently in a school deferment and
interest is only accruing on her unsubsidized principal balancePrior to Ms
***’s June 17, payment, her last payment made, which brought her unsubsidized
principal balance to the amount listed above, was on May 21,
Using
the aforementioned interest calculation and loan data, below is a calculation
of the interest that accrued between Ms***’s May 21, and June 17,
payments
Unpaid Principal Balance ($79,008.59) x
Interest Rate (6.25%) = $4,
x Number of Days at that Balance (27) =
$133,
Divided by = $
The
attached payment history, which will allow Ms*** to review the
application of all of her payments, confirms a payment of $4,was received
June 17, 2015, of which $was applied to the accrued interest and
$4,was applied to principalAdditionally, so she may see how all payments have been
applied toward her Consolidation loan, we have attached a more detailed payment
history which breaks down how each payment was applied to both the subsidized
and unsubsidized portions of her loanIn order to differentiate between
subsidized and unsubsidized portions of her Consolidation loan, each portion
has its own token number, the subsidized portion falls under token 220, and the
unsubsidized portion under token
I
hope Ms*** finds the information provided helpfulIf she has any
additional questions or concerns, she may contact our Borrower Services
Department by phone at ###-###-####, through email at ***, or by
mailing:
Great Lakes
** *** ***
*** ** ***
Sincerely,
Aimee S***
*** * *** ***
Great
Lakes Educational Loan Services Inc
Thank you for contacting us on behalf of MsDawn *** and for providing us the opportunityto address her concern regarding how the payments she has submitted toward her student loanaccount with the U.SDepartment of Education (ED) were processed, as well as her request forreimbursement of the
interest that has accrued due to payments not processing.Upon review of Ms***’s account, we have confirmed that she did discuss her concernswith a *** *** *** on December 16, To confirm, the payment she isreferencing was received at an incorrect payment address, which does not accept payments forED held loans, and is being refunded as quickly as possibleThe estimated time frame for herexpedited refund request is approximately to business days.After reviewing Ms***’s call with the *** *** ***, we are also pleasedto confirm that once her payment has been resubmitted to the correct payment address for EDheld loans, we will backdate it to December 16, Backdating, or retroactively applying thepayment, will allow for the amount of interest paid on the payment to be equal to the amount ofinterest paid as if the payment was received on that date.Additionally, when previous electronic payments were rejected by Ms***’s financialinstitution, Great Lakes was provided notifications which indicated to us that the checking accountassociated with the routing and account numbers provided was closedBecause Great Lakes onlyreceives a brief summary from a borrower’s financial institution detailing the reason a payment isrejected, we encourage her to again contact her bank to verify the correct routing and accountnumbers to use to ensure her payment is withdrawn from her checking accountWhile we would prefer to have the ability to provide additional information as to why her financialinstitution processed the payment from her savings account as opposed to checking, please alsonote that Great Lakes only sends the financial institution the numbers a borrower provides whensubmitting their paymentUnfortunately, we have no control over how a borrower’s payment issubsequently processed or the account their financial institution withdraws the payment from.We apologize to Ms*** for any frustration she has experienced and hope she finds theinformation provided helpfulIf she has additional questions or concerns, she may contact ourBorrower Services Department by phone at ###-###-####, by email at***, or by mail to the address below:Great Lakes*** *** ***
*** ** ***
Thank you for your recent letter to Mr*** ***, Great Lakes’ President and CEOYour email was forwarded to me for review and response and I appreciate the opportunity to address your request for us to update your mailing address.We are pleased to inform you that the address on your loan has
been updated to:Aquila RiversPO Box 146Sudbury, MA 01776Concerning the letter you sent in September to update your address, it appears that we did not receive it because it was sent to the payment processing center for your lender, the U.SDepartment of EducationUnfortunately, it was not forwarded to Great LakesNevertheless, if you ever need to update similar information in the future, you may do so at any time on our website, mygreatlakes.org, or you may contact us using the information provided belowWe would be happy to assist you.I hope this update alleviates your concernPlease know that we are here to assist you with the repayment of your loan in any way that we canIf you have any additional questions or concerns, you may visit our website or contact our Borrower Services Department by calling ###-###-####, emailing ***, or by mailing:
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity toaddress her concern regarding her Direct Consolidation Loan, which we service on behalf of herlender, the U.SDepartment of Education (ED)Ms***’s concern, as we understand it, is thatshe is
requesting loan forgiveness.Concerning loan forgiveness, we must first point out that the release of a borrower from theirfederal loan obligation must result in the meeting of qualifying requirements, as authorized by TitleIV, Part B, of the Higher Education Act of 1965, as amendedThe Direct Loan Program offers veryfew opportunities for loan forgivenessSome examples of the forgiveness programs available are;Public Service Loan Forgiveness, Teacher Loan Forgiveness, Borrower Defense to Repayment,as well as discharge for Total and Permanent DisabilityIf Ms*** believes that any of theforgiveness programs offered by ED are applicable to her current circumstances, we encourageher to contact us to review the program’s eligibility requirements.Unfortunately, regardless of whether or not a borrower’s situation involves extenuatingcircumstances, which Ms*** made reference to, there are no provisions in place that allow usto make any changes or exceptions to any of the eligibility requirements of the forgivenessprograms offered by EDIf Ms*** would like to review a complete list of the forgivenessprograms offered by ED, or obtain additional information regarding each program’s eligibilityrequirements, she may visit; https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation.As of December 15, 2016, Ms***’s account is days past due in the amount of $8,064.72.Given the status of her account, it is important for her to know that the federal regulations arewritten knowing that borrowers can, during the life of their loan(s), encounter financial situationsthat can prevent them from making their scheduled paymentsTherefore, assistance options suchas deferments, forbearances and alternate repayment plans exist to suspend payments or provideborrowers the opportunity to lower their payments, preventing them from defaulting.We strongly encourage Ms*** to contact us to review the repayment and assistance optionsthat may be available to lower or temporarily postpone her monthly payments to get her accountback into good standing and prevent her loan from defaultingWe would be happy to assist herwith finding the option that best fits her current circumstances.We hope that Ms*** finds the information provided helpfulIf she has additional questions orconcerns, she may contact our Borrower Services Department by phone at ###-###-####(Please note that some calls may be monitored or recorded for quality assurance purposes), byemail at [email protected], or by mail to the address below:Great Lakes*** *** ***
*** ** ***
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
I am requesting the following: A detailed summary of my account; including the original payment schedule, interest rate and ending balance, and an explanation of how the new payment will address the deficit A written assurance from Green Tree that my payment will not increase again during the life of the loan, and if they have miscalculated my account, Green Tree will assume responsibility for any remaining balance at the end of the term A written acknowledgement from Green Tree (to be posted on the Revdex.com site) that two years without an audit on a year loan does not meet the standard of "regular review."
Regards,
*** ***
Thank you for contacting us on behalf of Mr*** *** 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.SDepartment 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 canHowever, 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 receiveThis information can be provided by either the school or the student themselvesStated within the Borrower’s Rights and Responsibilities Statement of Mr***’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*** was no longer a half-time student as of May 20, Unfortunately, we did not receive notification from Mr*** or his school that he was no longer a half-time student until July 16, Consequently, since both of Mr***’s accounts had already utilized their one-time month grace period, his accounts entered repayment and the unpaid interest capitalized, which is in accordance with his loan agreementsThis is the reason Mr***’s accounts went from deferment into repayment so quickly.I understand that this is not the answer Mr*** was hoping for and apologize for the frustration he has experiencedIf he has any questions or concerns, he may contact our Borrower Services Department by phone at ###-###-####, through email at ***, or by mailing:Great Lakes** *** ***
*** ** ***Sincerely,Aimee S*** * *** ***Great Lakes Education Loan Services, Inc
Thank you for your follow up regarding Ms*** ***’s concern about her mother no longer being contacted.As stated in our previous response, the telephone number Ms*** requested no longer be called, ###-###-####, has been removed from our system.If Ms*** has any additional questions or concerns, she may contact our Borrower Services Department via phone at ###-###-####, or by email at ***
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity to address her request which is to no longer contact her mother.To begin, we believe it is important to provide information about Great Lakes Educational Loan Services, Inc(Great Lakes) so that Ms
*** and her mother are aware of the reason we contacted her mother.At Great Lakes, we primarily service federal student loans for the U.SDepartment of Education (ED)When a student is completing the Free Application for Federal Student Aid (FAFSA), so that they may receive federal financial aid, they are required to provide at least two referencesED requires them to provide these references for the sole purpose of being somebody who has the ability to update the student’s demographic information, such as the address or phone number, if the information they originally provided on the application ever becomes invalid.Unfortunately, if the student’s demographic information is no longer valid; their references are contacted in an effort to obtain current contact informationA significant point to note is that the agreement signed by a student to take a federal student loan, the Master Promissory Note, states that the student is required to keep their contact information updated if it ever changes from what they originally provided.Upon receiving Ms***’s inquiry, we reviewed our records for the telephone number she referenced, ###-###-####Our records indicated that this number was on our system as the contact number for MsPhyllis Smith, who is listed as a reference for one of our customersHowever, to ensure that Ms***’s mother is no longer contacted, we have placed the previously referenced number on our “do not call” listMoving forward, Ms***’s mother should no longer receive any telephone calls from Great Lakes.I apologize for any frustration Ms*** experienced and hope the information provided alleviates her concern
We, at Great Lakes and as a federal loan servicer, do not determine the amount of a student’s disbursements or how they are allocated, which is Mr***’s primary concernThose are both done by the schoolWe have provided all pieces of information possible and detailed all options for Mr*** to consider, and unfortunately there is nothing further that we can do or help himMoving forward, and as stated in or prior responses, Mr*** will need to contact his school for any additional information necessary for him to resolve his complaint. Sincerely, Aimee S*** * *** ***Great Lakes Educational Loan Services Inc
Thank you for contacting us on behalf of Mr*** *** a second time and for providing usthe opportunity to further address his concern related to his January 27, complaintWeunderstand his concern to be regarding payments that were submitted to an incorrect address,which were being processed by Great Lakes and which resulted in payments being reflected onhis account as pending prior to them being returned to him.In order to fully address Mr***’s additional concern, it is important to again point out thatuntil recently Great Lakes was able to process and forward payments that were sent to anincorrect payment address (Great Lakes address instead of the address used by the U.S.Department of Education (ED))This process, of processing and forwarding payments to theappropriate payment address resulted in Great Lakes reflecting payments on his account thatwere processed and not yet forwarded to ED.Payments received at the Great Lakes’ processing facility are processed through an automatedsystem and routed to the borrower’s account, which is why payments may have reflected aspending in Mr***’s payment historyAs Great Lakes was informed by ED to discontinueforwarding funds received and processed at an incorrect address, we have no choice but to returnsuch payments to the remitter, which is what occurred with Mr***’s most recent payments.We hope Mr*** will accept our apology for any inconvenience he has experienced, andwould also like to reconfirm that he may follow up with our Borrower Services Department whenhis returned payments are resubmitted to request they be backdated to their original dates ofreceipt.He can reach a Borrower Services Representative by phone at ###-###-####, by email [email protected], or by mail to the address below:We again thank you for giving us the opportunity to further address Mr***’s concern andhope that he finds the additional information helpful.Sincerely,***, ***
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr
***:
Thank
you for contacting us on behalf of Ms*** *** (*** ***) 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 the current credit reporting by Great
Lakes
In
our review of the reporting of Ms***’s account by the Credit Reporting
Agencies (CRAs) we did indeed detect a duplication being reported by
TransUnion. All other CRAs reporting were
seen to be accurate.
We
are happy to report that we are currently working with TransUnion to remedy the
inaccuracy in order for them to report the correct information. We ask that Ms*** allow two weeks for
this process to be completed. She should
see the correction the next time she checks her credit file at TransUnion in
two weeks.
We
sincerely apologize for the frustration Ms*** has experienced with the credit
reporting process and we hope this information will be helpful to her. If you require future assistance from our
office, you can reach us between 8:am and 4:pm Monday through Friday at
###-###-####, or by email at ***.
Sincerely,
Joe
J***
Great
Lakes Ombudsman Office
Dear Mr***:Thank you for contacting us on behalf of Ms*** *** and for providing us furtheropportunity to address her concerns about her student loans that are stillguaranteed by Great Lakes Higher Education Guaranty Corporation (Great Lakes)and were/are serviced by *** Solutions, Incorporated (***)Her concern,as we understand it is that some of her loans have not yet been forgiven due toher service related disability. Our office has contacted the servicer of the loans in question *** as well asGreat Lakes Claims Department to assist in resolving this issue. What we were able to ascertain from ourinvestigation was that *** filed the Total and Permanent Disability (TPD)Loan Discharge Claim to Great Lakes but it was returned to *** on August 6,2015. The reason for the claim rejection was due to *** using an incorrect interest rate causing an incorrect loanamount to be submitted. *** has/had days to refile the claim from August 6, 2015.We are pleased to inform you that some progress has been made on the TPD Claim,although the issue is not yet completely resolved. *** has made the necessary correctionsand has resubmitted the TPD Claim to Great Lakes on September 8, 2015. The next step will be for Great Lakes Claims topay a TPD Claim to ***, at which time the loan/s in question will show thecorrect status of having been approved for TPD discharge due to Ms***’sservice related disability. Great Lakes now has days from September 8, to pay the claim to ***Once Great Lakes pays the TPD Claim to ***, their system will then show that allof the loans that they serviced on behalf of Great Lakes the guarantor havebeen approved for Total and Permanent Disability (TPD) Loan Discharge due toher service related disability. We again would like to thank Ms*** for her service and dedication to ourcountry and sincerely apologize for the frustration Ms*** has experienced andhope this information will be helpful to herWe will keep you informed as tothe progress of the case. In the meantime, if you require assistance from our office, you can reach us between8:am and 4:pm Monday through Friday at ###-###-####, or by email at***. Sincerely,*** ***Great Lakes Ombudsman Office
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity to address her request, which is for Great Lakes to remove the delinquencies reported toward her credit files.To begin, we must first note that the Higher Education Act of requires Great Lakes to
report the status of all serviced student loan accounts to the nationwide Credit Reporting Agencies (CRAs)Additionally, the Fair Credit Reporting Act requires that this information is reported accurately and objectivelyIt’s also important to note that we are audited to ensure our compliance with these requirements.With this in mind, we reviewed Ms***’s account to verify the accuracy of the information we reported toward her credit files, and to ensure no errors were made that lead to, or resulted in, inaccurate delinquency reporting (such as misapplication of payments)This review confirmed that all of the information we reported to the CRAs, on behalf of Ms***, was accurateOur review further confirmed that prior to requesting forbearance on June 14, to bring her account current, her account was days past due.With regards to the conversations Ms*** referenced, our records indicate that she had five conversations with our Borrower Services Department prior to April 2016, which appears to be when she brought her concern to our attentionThese conversations took place on the following dates; July 23, 2014, March 2, 2015, June 2, 2015, October 6, and December 23, We listened to call recordings to verify Ms***’s assertion that she was advised that her account would not be reported to the CRAs unless it exceeded days past dueOur review of these phone calls verified that she was not told that no adverse information would be reported to the CRAs prior to her account exceeding days past dueShe was actually advised that her account would be not be considered in default unless it exceeded days past due.Regrettably, for the reasons mentioned above, even though we empathize with her situation, we are unable to make any adjustments to our past credit reportingNevertheless, we wanted to share with Ms*** an important point listed on Myfico.com, which indicates that individuals who were delinquent in the past are able to improve their FICO score by paying their loans on time, and the longer an individual pays on time, the more their FICO score should increase.We understand that this is not the answer Ms*** was hoping for, and apologize for any frustration she has experiencedIf she has any additional questions or concerns, she may contact our Borrower Services Department by phone at ###-###-####, by email at [email protected], or by mailing:Great LakesP.OBox 7860Madison, WI 53707Sincerely,*** ***
Thank you for contacting us on behalf of Ms*** *** and for providing us theopportunity to address her concern regarding the Economic Hardship Deferment she applied forthat has yet to be approved.I am pleased to advise that we were able to approve Ms***’s Economic HardshipDeferment
The deferment was applied to her account today, February 12, 2016, with the effectivedates January 1, through December 31, 2016.After receiving Ms***’s inquiry, we reviewed the deferment applications she submitted inJanuary Our review confirmed that the documentation she provided on January 7, 2016,the date she submitted her initial deferment renewal application, was sufficient to meet thedeferment’s eligibility requirements.Please note that we appreciate the fact that Ms*** took the time to bring her concern toour attentionTo prevent such issues from arising in the future, as our goal is to provide excellentcustomer service, we have forwarded her concern to the appropriate parties for review andcoaching purposes.I genuinely apologize for the frustration Ms*** experienced, and hope the informationprovided alleviates her concernIf she has any additional questions or concerns, she may contactour Borrower Services Department at ###-###-####, ***, or theaddress below:Great Lakes*** *** ***
*** ** ***
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
Regards,
*** *** I'm still a little confused as to why I was sent a letter in July of this year saying I defaulted, again, on a loan, and why my Federal refund check was not offset in 2015. I also need to understand about the "borrower payment" showing in January of through February of
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.I spoke the Department of Education Umbusment office and a representative provided me with a contact number to Great Lakes Accounts Resolution and I spoke with Neal Neal reviewed the same jargon of information and he stated that I am responsible for the payment of $and that money is divided between my loans The discrepancies is for that I made a total of five $payments The excess WAS NOT applied as they so explained, they allotted the allocation of my monthly payment amongst the total bill of $ For example, two bills combined makes up the $($and $125.32) and they reappropriated the excess funds based on the payment of $Now based on the monthly statements that I received, and avaliable online for my viewing pleasure, shows amounts under the heading of paid ahead Now I have been told by Manager Dick that the value listed under that heading are "phantom credits" and that it is not a true representation of the money I have paid, but how can that be If the documents Great Lakes sends out and clearly states these are amounts paid ahead then why are they not accurately reflected towards my balance Now answer my question, where is the money that is reflected under the heading of paid ahead reflected in the payments history- see attached file.
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
Regards,
Benita ***
Tell us why her Stacy ***Lead Trade Practice ConsultantRevdex.com of WisconsinW Greenfield Ave #125Milwaukee WI 53214 Complaint ID: ***Reference ID: 00-4563941 Dear Ms***, Thank you for contacting us on behalf of MrKyle A
*** and for providing us the opportunity to address his concern regarding his student loanMr***’s concern as we understand it that he had requested deferment or forbearance in June of and that the loan should not be in default. By way of some background, on December 26, Great Lakes Higher Education Guaranty Corporation (Great Lakes), as the guarantor, paid a default claim to Nelnet Loan Services, IncorporatedThis was the result of their not receiving payment(s) or a completed request for deferment or forbearance to prevent Mr***’s loan from defaulting. Based on the terms of his signed Promissory Note, when his student loan defaulted, the balance became due and payable in full. Ultimately, the servicing of Mr***’s defaulted Stafford loan has been assigned to Performant Recovery Incorporated (Performant). With that being said, we contacted Performant the loan servicer to verify the conversations that possibly transpired between them and Mr*** in June of 2016. Performant informed us that they have not had any telephone contact with Mr***, nor have they received any written correspondence from him. It is also important to note that since his Federal Family Education Loan Program Stafford loan is in default status there is no option for either deferment or forbearance. Additionally our records show that Mr*** has taken advantage of a loan rehabilitation to resolve a prior default. As such his options to resolve his current default are limited because changes to the federal regulations as of August 14, no longer allow borrowers to rehabilitate defaulted loans more than once. One option to avoid possible Administrative Wage Garnishment (AWG) payments and tax offsets would be to enter into a voluntary, fully amortized monthly payment plan to resolve the account in the allowable years. Based on Mr***’s current balance, Performant indicated to us that would be approximately $per month. The Debt Collection Act of and the Debt Collection Improvement Act of authorize the USDepartment of Treasury to offset any eligible Federal payments of individuals indebted to the USGovernmentAs such, Mr***’s defaulted student loan(s) remain certified for Treasury offset until the account is paid in full or he has established and maintained repayment arrangements. Mr*** may be able to avoid future Treasury Offsets if he contacts his loan servicer Performant, and makes and maintains satisfactory agreed-upon repayment arrangements. Mr*** may reach a Performant representative at 1-800-927-7667. Another option available to satisfy a defaulted account is to consolidate. Mr*** can attempt to consolidate through the William DFord Direct Loan Program. A Direct consolidation is when the U.SDepartment of Education (ED) issues a consolidation loan that pays a borrower’s outstanding student loans. They then repay the consolidation loan directly to the ED. Mr*** can obtain additional information on this program; by calling 800-557-or visiting their website at http://www.loanconsolidation.ed.gov/ * It is important to understand that Mr*** will remain responsible for the collection fees should he decide to rehabilitate or consolidate his loans. We again thank you for contacting us and for giving us an opportunity to be of assistanceIf additional information is required, please by all means, contact usYou can reach our office between 7:am and 4:pm Monday through Friday at 866-486-7140, or by email at [email protected]. Sincerely, Joe ***Great Lakes Higher EducationOmbudsman Specialist e
June 2,
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr
***:
Thank
you for contacting us on behalf of Mr*** *** and for providing us the
opportunity to address his concern regarding the application of payments toward
his Direct Loan Program (DLP) and Federal Family Education Loan Program (FFELP)
student loan accounts with the U.SDepartment of Education (ED)
Mr
***’s DLP and FFELP loans are federal loansAs such, Great Lakes, his servicer,
is contractually obligated to abide by all federal guidelines set forth by EDOur
purpose is to assist Mr*** with the repayment of his loans in any way that we
canHowever, as we assist him, we are required to comply with all guidelines
that govern his DLP and FFELP loansInterest rates, forbearance eligibility,
deferment eligibility, loan forgiveness and discharge, repayment options, as
well as payment application are outlined within the federal guidelines
Mr
***’s federal loans are also simple interest loans; meaning interest accrues
daily based on his interest rate and principal balanceThe calculation used to
determine the amount of interest that accrues per day is as follows:
Unpaid Principal Balance x Interest
Rate x Number of Days at that Balance
Divided by
or (Days in a Year)
The
federal guidelines require loan servicers to apply regular monthly payments
made towards a federal loan first to any late charges (if applicable), then to
accrued interest, and then the remainder, if any, is prorated and applied to
the principal balance of the loans within the accountIf a payment is larger
than the regular monthly payment, the overpayment is applied to the principal
of the loan with the highest interest rate, assuming all outstanding accrued
interest is paid
When
extra payments are received they will be applied in this same mannerProvided
the regular monthly payment amount has already been madePlease note that all
accrued interest must first be paid prior to any payment amount being directed
toward the principal balance
Making
extra payments, or overpayments, generally results in a borrower’s loan being
“paid ahead.” This paid ahead status does not affect how their payments are
applied, which is as described above as of the date the payment is received
Instead, it means that a borrower won’t be considered delinquent if they stop
making payments until they are no longer paid aheadIt is important for Mr
*** to realize that he is still reducing his principal balance, which appears
to be his intention
It is
equally important for him to remember that even if he is paid ahead of his
current payment schedule and technically not required to make a payment,
interest does continue to accrue, so it is to his advantage to continue to make
monthly paymentsThere are no prepayment penaltiesBy making payments in
addition to his monthly payment, he will reduce his principal balance faster
Correspondingly, a lower principal balance means less interest will accrue
which will ultimately save him more money over the life of his loan
After
receiving Mr***’s inquiry, we reviewed his accounts and have confirmed that
all of his payments were applied accuratelyMoving forward, we are pleased to
notify Mr*** that any payments he makes in excess of his required minimum
monthly payment, after interest has been satisfied, will be automatically
reapplied as he referenced, which is to reduce the highest interest rate loans
within his accounts, until he advises us differently
Once Mr
***’s payment(s) have been posted to his account, if they have not been posted
as he intended, they will then be reappliedThe reapplication process may take
up to to business daysPlease be assured that regardless of the processing
time involved in reapplying the payment(s), funds received will be applied the
date they were scheduled to be creditedThis can be verified by checking his
payment history on our website, mygreatlakes.org
I regret
the frustration Mr*** experienced and hope that he finds the information
provided helpfulIf he has any additional questions or concerns about the
repayment of his loans, he may contact our Borrower Services Department by
calling ###-###-####, emailing ***, or by mailing:
Great Lakes
** *** ***
*** ** ***
Sincerely,
Aimee S***
*** * *** ***
Great
Lakes Educational Loan Services Inc
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
I do not agree with Great Lakes' responseIt is unfortunate, because I also did not have a choice in having them to service my loansI will have to find a way to refinance my loans ASAP in order to not deal with them any longerIt is to no surprise why they have a 1/star rating in most consumer review websites. I do not agree that I made a payment on 11/to be paid out 11/9, I wanted the payment to be applied on 11/when I posted it to my online accountSince I made my payment on 11/6, the amount I paid should have been to cover the interest paid up to that dateI am already in a program to defer my payments due to my low incomeAt this rate, I will never finish paying off my loans since I am just paying interest.
Regards,
***
Thank you for contacting us on behalf of Mr*** *** and for providing us the opportunity to address his concern regarding the application of payments toward his Stafford loan with the U.SDepartment of Education.After reviewing Mr***’ account, it appears that his concern was addressed
directly during the conversation he had on July 29, with our Escalation Team, and the follow up conversation he had with our Borrower Services Department on August 8, 2016.We would like to apologize to Mr*** for any frustration he experiencedIn the event that Mr*** has additional questions or concerns, to ensure they are thoroughly addressed, we ask that he contact our Escalation Team directly by phone at ###-###-####, or by email at [email protected],
July 27,
*** ***
*** *** *** ***
*** *** *** ** ***
*** * *** *** ***
*** ** ***
Complaint ID: ***
Great Lakes ID: ***
Dear
Mr***:
Thank
you for contacting us on behalf of Ms*** *** and for providing us
the opportunity to address her concern about interest accrual, and her request
for information detailing interest paid on her Direct Loan Program (DLP) student
loan accounts with the U.SDepartment of Education (ED)
Great
Lakes is currently servicing Ms***’s DLP Consolidation loan made in
June 2010, and previously serviced her
DLP Stafford loan that was made in September 2013, which was paid in-full June
5, Ms***’s Consolidation loan and Stafford loan are federal loans
As such, Great Lakes, as her servicer, is contractually obligated to abide by
all federal guidelines governing the federal loan programs as set forth by EDGreat
Lakes purpose is to assist Ms*** with the repayment of her loans in
any way that we canHowever, as we assist her, we are required to comply with
all guidelines that govern her DLP loansInterest rates, forbearance
eligibility, deferment eligibility, loan forgiveness and discharge, repayment
options, as well as payment application are outlined within the federal
guidelines
Ms***’s
federal loans are simple interest loans; meaning interest accrues daily based
on her interest rate and principal balanceThis is also noteworthy because it
is uniform for all federal student loan borrowersThe calculation used to
determine the amount of interest that accrues per day is as follows:
Unpaid Principal Balance x Interest
Rate x Number of Days at that Balance
Divided by
or (Days in a Year)
The
federal guidelines require loan servicers to apply regular monthly payments
made toward a federal loan first to any late charges (if applicable), then to
accrued interest, and then the remainder, if any, is prorated and applied to
the principal balance of the loans within the accountIf a payment is larger
than the regular monthly payment, the overpayment is applied to the principal
of the loan with the highest interest rate, assuming all outstanding accrued
interest is paid.
When
extra payments are received, they will be applied in this same manner, provided
the regular monthly payment amount has already been madePlease note that all
accrued interest must first be paid prior to any payment amount being directed
toward the principal balance
Making
extra payments, or overpayments, generally results in a borrower’s loan being
“paid ahead.” This paid ahead status does not affect how their payments are
applied, which is as described above as of the date the payment is received
Instead, it means that a borrower will not be considered delinquent if they
stop making payments until they are no longer paid ahead
It is
equally important for Ms*** to remember that even if she is paid ahead
of her current payment schedule and technically not required to make a payment,
interest continues to accrue on her account, so it is to her advantage to
continue to make monthly paymentsBy making payments in addition to her
monthly payment, she will reduce her principal balance fasterCorrespondingly,
a lower principal balance means less interest will accrue which will ultimately
save her more money over the life of their loan
Attached
are payment and interest rate histories so Ms*** can see the amount of
interest she paid with each payment made toward her Stafford and Consolidation
loansUnfortunately,
there is not a computerized report detailing the interest accrual that we could
provide Ms***For an example of how to calculate the amount of
interest that is accrued between payments, which appears to be what Ms
*** is concerned with, we will detail how her June 17, payment of
$4,was applied toward her Consolidation loan
The
interest rate on Ms***’s Consolidation loan is currently 6.25% and her
principal balance prior to the aforementioned payment was $137,270.64, of which
$79,was unsubsidized and $58,subsidizedDetailing the separate
balances is necessary because she is currently in a school deferment and
interest is only accruing on her unsubsidized principal balancePrior to Ms
***’s June 17, payment, her last payment made, which brought her unsubsidized
principal balance to the amount listed above, was on May 21,
Using
the aforementioned interest calculation and loan data, below is a calculation
of the interest that accrued between Ms***’s May 21, and June 17,
payments
Unpaid Principal Balance ($79,008.59) x
Interest Rate (6.25%) = $4,
x Number of Days at that Balance (27) =
$133,
Divided by = $
The
attached payment history, which will allow Ms*** to review the
application of all of her payments, confirms a payment of $4,was received
June 17, 2015, of which $was applied to the accrued interest and
$4,was applied to principalAdditionally, so she may see how all payments have been
applied toward her Consolidation loan, we have attached a more detailed payment
history which breaks down how each payment was applied to both the subsidized
and unsubsidized portions of her loanIn order to differentiate between
subsidized and unsubsidized portions of her Consolidation loan, each portion
has its own token number, the subsidized portion falls under token 220, and the
unsubsidized portion under token
I
hope Ms*** finds the information provided helpfulIf she has any
additional questions or concerns, she may contact our Borrower Services
Department by phone at ###-###-####, through email at ***, or by
mailing:
Great Lakes
** *** ***
*** ** ***
Sincerely,
Aimee S***
*** * *** ***
Great
Lakes Educational Loan Services Inc
Thank you for contacting us on behalf of MsDawn *** and for providing us the opportunityto address her concern regarding how the payments she has submitted toward her student loanaccount with the U.SDepartment of Education (ED) were processed, as well as her request forreimbursement of the
interest that has accrued due to payments not processing.Upon review of Ms***’s account, we have confirmed that she did discuss her concernswith a *** *** *** on December 16, To confirm, the payment she isreferencing was received at an incorrect payment address, which does not accept payments forED held loans, and is being refunded as quickly as possibleThe estimated time frame for herexpedited refund request is approximately to business days.After reviewing Ms***’s call with the *** *** ***, we are also pleasedto confirm that once her payment has been resubmitted to the correct payment address for EDheld loans, we will backdate it to December 16, Backdating, or retroactively applying thepayment, will allow for the amount of interest paid on the payment to be equal to the amount ofinterest paid as if the payment was received on that date.Additionally, when previous electronic payments were rejected by Ms***’s financialinstitution, Great Lakes was provided notifications which indicated to us that the checking accountassociated with the routing and account numbers provided was closedBecause Great Lakes onlyreceives a brief summary from a borrower’s financial institution detailing the reason a payment isrejected, we encourage her to again contact her bank to verify the correct routing and accountnumbers to use to ensure her payment is withdrawn from her checking accountWhile we would prefer to have the ability to provide additional information as to why her financialinstitution processed the payment from her savings account as opposed to checking, please alsonote that Great Lakes only sends the financial institution the numbers a borrower provides whensubmitting their paymentUnfortunately, we have no control over how a borrower’s payment issubsequently processed or the account their financial institution withdraws the payment from.We apologize to Ms*** for any frustration she has experienced and hope she finds theinformation provided helpfulIf she has additional questions or concerns, she may contact ourBorrower Services Department by phone at ###-###-####, by email at***, or by mail to the address below:Great Lakes*** *** ***
*** ** ***
Thank you for your recent letter to Mr*** ***, Great Lakes’ President and CEOYour email was forwarded to me for review and response and I appreciate the opportunity to address your request for us to update your mailing address.We are pleased to inform you that the address on your loan has
been updated to:Aquila RiversPO Box 146Sudbury, MA 01776Concerning the letter you sent in September to update your address, it appears that we did not receive it because it was sent to the payment processing center for your lender, the U.SDepartment of EducationUnfortunately, it was not forwarded to Great LakesNevertheless, if you ever need to update similar information in the future, you may do so at any time on our website, mygreatlakes.org, or you may contact us using the information provided belowWe would be happy to assist you.I hope this update alleviates your concernPlease know that we are here to assist you with the repayment of your loan in any way that we canIf you have any additional questions or concerns, you may visit our website or contact our Borrower Services Department by calling ###-###-####, emailing ***, or by mailing:
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity toaddress her concern regarding her Direct Consolidation Loan, which we service on behalf of herlender, the U.SDepartment of Education (ED)Ms***’s concern, as we understand it, is thatshe is
requesting loan forgiveness.Concerning loan forgiveness, we must first point out that the release of a borrower from theirfederal loan obligation must result in the meeting of qualifying requirements, as authorized by TitleIV, Part B, of the Higher Education Act of 1965, as amendedThe Direct Loan Program offers veryfew opportunities for loan forgivenessSome examples of the forgiveness programs available are;Public Service Loan Forgiveness, Teacher Loan Forgiveness, Borrower Defense to Repayment,as well as discharge for Total and Permanent DisabilityIf Ms*** believes that any of theforgiveness programs offered by ED are applicable to her current circumstances, we encourageher to contact us to review the program’s eligibility requirements.Unfortunately, regardless of whether or not a borrower’s situation involves extenuatingcircumstances, which Ms*** made reference to, there are no provisions in place that allow usto make any changes or exceptions to any of the eligibility requirements of the forgivenessprograms offered by EDIf Ms*** would like to review a complete list of the forgivenessprograms offered by ED, or obtain additional information regarding each program’s eligibilityrequirements, she may visit; https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation.As of December 15, 2016, Ms***’s account is days past due in the amount of $8,064.72.Given the status of her account, it is important for her to know that the federal regulations arewritten knowing that borrowers can, during the life of their loan(s), encounter financial situationsthat can prevent them from making their scheduled paymentsTherefore, assistance options suchas deferments, forbearances and alternate repayment plans exist to suspend payments or provideborrowers the opportunity to lower their payments, preventing them from defaulting.We strongly encourage Ms*** to contact us to review the repayment and assistance optionsthat may be available to lower or temporarily postpone her monthly payments to get her accountback into good standing and prevent her loan from defaultingWe would be happy to assist herwith finding the option that best fits her current circumstances.We hope that Ms*** finds the information provided helpfulIf she has additional questions orconcerns, she may contact our Borrower Services Department by phone at ###-###-####(Please note that some calls may be monitored or recorded for quality assurance purposes), byemail at [email protected], or by mail to the address below:Great Lakes*** *** ***
*** ** ***
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID ***, and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below
I am requesting the following: A detailed summary of my account; including the original payment schedule, interest rate and ending balance, and an explanation of how the new payment will address the deficit A written assurance from Green Tree that my payment will not increase again during the life of the loan, and if they have miscalculated my account, Green Tree will assume responsibility for any remaining balance at the end of the term A written acknowledgement from Green Tree (to be posted on the Revdex.com site) that two years without an audit on a year loan does not meet the standard of "regular review."
Regards,
*** ***
Thank you for contacting us on behalf of Mr*** *** 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.SDepartment 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 canHowever, 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 receiveThis information can be provided by either the school or the student themselvesStated within the Borrower’s Rights and Responsibilities Statement of Mr***’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*** was no longer a half-time student as of May 20, Unfortunately, we did not receive notification from Mr*** or his school that he was no longer a half-time student until July 16, Consequently, since both of Mr***’s accounts had already utilized their one-time month grace period, his accounts entered repayment and the unpaid interest capitalized, which is in accordance with his loan agreementsThis is the reason Mr***’s accounts went from deferment into repayment so quickly.I understand that this is not the answer Mr*** was hoping for and apologize for the frustration he has experiencedIf he has any questions or concerns, he may contact our Borrower Services Department by phone at ###-###-####, through email at ***, or by mailing:Great Lakes** *** ***
*** ** ***Sincerely,Aimee S*** * *** ***Great Lakes Education Loan Services, Inc
Thank you for your follow up regarding Ms*** ***’s concern about her mother no longer being contacted.As stated in our previous response, the telephone number Ms*** requested no longer be called, ###-###-####, has been removed from our system.If Ms*** has any additional questions or concerns, she may contact our Borrower Services Department via phone at ###-###-####, or by email at ***
Thank you for contacting us on behalf of Ms*** *** and for providing us the opportunity to address her request which is to no longer contact her mother.To begin, we believe it is important to provide information about Great Lakes Educational Loan Services, Inc(Great Lakes) so that Ms
*** and her mother are aware of the reason we contacted her mother.At Great Lakes, we primarily service federal student loans for the U.SDepartment of Education (ED)When a student is completing the Free Application for Federal Student Aid (FAFSA), so that they may receive federal financial aid, they are required to provide at least two referencesED requires them to provide these references for the sole purpose of being somebody who has the ability to update the student’s demographic information, such as the address or phone number, if the information they originally provided on the application ever becomes invalid.Unfortunately, if the student’s demographic information is no longer valid; their references are contacted in an effort to obtain current contact informationA significant point to note is that the agreement signed by a student to take a federal student loan, the Master Promissory Note, states that the student is required to keep their contact information updated if it ever changes from what they originally provided.Upon receiving Ms***’s inquiry, we reviewed our records for the telephone number she referenced, ###-###-####Our records indicated that this number was on our system as the contact number for MsPhyllis Smith, who is listed as a reference for one of our customersHowever, to ensure that Ms***’s mother is no longer contacted, we have placed the previously referenced number on our “do not call” listMoving forward, Ms***’s mother should no longer receive any telephone calls from Great Lakes.I apologize for any frustration Ms*** experienced and hope the information provided alleviates her concern