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7 Fables and Factual Statements About Federal Figuratively Speaking

When you have federal student education loans, demystifying their typical urban myths will allow you to within the long-run. Is it possible to split misconception from reality?

MYTH Great Lakes owns my figuratively speaking.

FACT Lenders, just like the U.S. Department of Education or banking institutions, possess your loan.

  • Section of that which we do is:
    • Track your school status and enrollment as long as you’re in college.
    • Accept and process your loan re re payments with respect to the lending company.
    • Work with you as you repay your loans.
    • Help keep you up-to-date with information regarding your figuratively speaking.
    • Originate and program your federal direct consolidation loans, as requested.

MYTH Great Lakes controls my education loan rate of interest and earnings through the interest.

  • For federal student education loans, the attention is decided because of the advanced schooling Act as enacted and amended by Congress. Interest paid on federal loans either would go to the U.S. National (for Direct loans) or even the specific loan provider (for Federal Family Education Loans). Additionally, generally speaking, loan owners control any price reductions you might get for making use of a digital repayment technique.
  • For personal figuratively speaking, the attention price is decided by — and profits head to — specific loan providers, just like a bank or credit union.

MYTH i have to spend a charge to register for Auto Pay, or submit an application for loan consolidation or a repayment plan that is income-driven.

  • In certain cases, it could feel your student education loans are a burden that is overwhelming. Keep in mind, your servicer (like Great Lakes) is here to provide you. Remain in touch. Inquire. Lean in it for expertise and help. At Great Lakes, we look ahead to making things get since smoothly as you are able to along with your figuratively speaking. Find out more about the services that are free for your requirements.

If I can’t find a job after graduation MYTH I don’t have to pay back my student loan.

There are many payment options that will help if you should be unemployed.

  • Income-based payment plans base your payment quantity on your revenue and household size. Your loan re re payments might be as little as $0 30 days.
  • A deferment temporarily postpones your repayments, but, interest will still accrue. Whom will pay for the attention depends upon whether your loan is subsidized by the federal government (they spend the attention) or unsubsidized (you spend the attention).

Them back MYTH I don’t have to think about my loans until it’s time to pay.

  • Tracking helps prevent any misunderstanding concerning the forms of cash you have received for the training ( e.g., loans you need to pay straight back vs. Funds you do not). Go to the National scholar Loan information System (NSLDS) to determine your federal loans and your loan servicer. You can get an annual free copy of your credit report from www. Annualcreditreport.com to identify them if you also have private student loans.
  • If Great Lakes will be your servicer, welcome! cashnetusa We are right right here to aid. Please register to get into your account on mygreatlakes.org and follow us on Twitter and Twitter. Additionally, please maintain your contact information updated on mygreatlakes.org so that you do not miss essential communications on your student education loans.

MYTH last due repayments cannot impact my credit rating.

  • Overdue payments (also referred to as delinquency) may be reported to your nationwide customer reporting agencies whenever you want, and under particular circumstances can adversely influence your credit score.
  • Do not wait to take action to fix overdue re re payments! If Great Lakes services your loans, call us for aid in understanding your choices, like trying to get an income-based payment plan that could possibly lower your payment per month to as little as $0.

MYTH Past due repayments cannot impact my capacity to get solutions or any other loans and their attention prices.

  • Overdue re payments could be a thing that businesses glance at before they consent to rent you housing or enable you to sign up for a site, such as for instance mobile solution.
  • Overdue re payments may also influence the capability to obtain the rate that is lowest feasible for insurance, and may also impact the interest you’re provided on other loans or mortgages.

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