There are different types of Great Lakes student loans available from the US Department of Education. These loans are used to help students pay their college tuition and other educational expenses. Without a doubt, going to college can be quite expensive. Great Lakes is one of the student loan service providers that help students manage their loans.
Here are the 3 types of Great Lakes Student Loans available:
1. Federal Family Education Loan Program (FFELP) Loans
FFELP or the Federal Family Education Loan Program is a student loan program given by a private lender and is guaranteed by the federal government. Private lenders can be banks, credit institutions or credit cooperatives. In cases wherein the student cannot pay his loan, the federal government — being the guarantor — will subsequently reimburse the commercial lenders the amount owed by the student.
2. Federal Direct Loan Program (Direct Lending) Loans
This student loan program provides loans with low interest rate for students. The federal government lends you the money via your college. In order to avoid default, the federal government will assign a student loan service provider such as Great Lakes to each student. This service provider helps to manage the loans of each student.
3. Private Loans
Unlike the Federal Direct Loan Program, private loans do not involve the federal government. Commercial lenders such as banks, credit unions and other financial institutions lend their money to students directly. These commercial lenders determine the eligibility of each student based on their own criteria.
8 Steps to Apply Great Lakes Student Loans
Applying for a student loan is not difficult. Now that you know the 3 types of Great Lakes Student loans, here are the steps on how to apply for one:
Complete the form Free Application for Federal Student Aid (FAFSA) online. Then, submit it to the US Department of Education.
It takes 3-5 days for the US Department of Education to process your application. The department will send a Student Aid Report to you and your college in order to determine your eligibility.
Your college will provide the information about your eligibility for the financial aid, and it is your responsibility to review it.
In case there is no problem with your eligibility, you can approve it. Otherwise, you can return it to your college for further inquiries.
Once you accept the eligible financial aid, you have to complete the Master Promissory Note from the US Department of Education online. This note is about the details of your student loan and your responsibilities.
The US Department of Education transfers the money via your college.
A student loan service provider such as Great Lakes is assigned to you. They will help you manage your loan and make sure that you do not default on your payment.
Great Lakes provides the latest information about your loan and reminds you to pay on time. If you have any difficulties about the repayment, you can always contact Great Lakes to discuss your problems and they will help you find the solution.
Pursuing a college degree that will open the door for a great career can be difficult if you do not have a financial backup to help you pay your tuition and other expenses. With the help of Great Lakes student loans, your dream for a better future can now be achieved.
Which types of Great lakes student loans are you interested in applying? Contact Great Lakes now.