A Guarantor or Servicer should not be confused with a lender.  Lenders are Banks, Credit Unions, and financial institutions that participate in the Federal Family Education Loan Program as lenders. A student loan guarantor’s obligation is to administer the Federal Family Education Loan Program.  These duties include counseling borrowers that are unable to make their payments or enforcing federal student loan rules.  A student loan servicer administrates the initial processing of a loan application, and issues loan disbursements, conversion to repayment, and in-school tracking.

Great Lakes Higher Education Corporation serves the U.S. Department of Education as one of the nation’s leading guarantors and servicers in student loans.  Great Lakes guarantees over $51 billion in loans under the Federal Family Education Loan Program.  They service over 3.5 million borrowers for over $43 billion in loans.  Great Lakes serves over 3,500 schools and 1,200 lenders.  They also act as designated guarantor for South Dakota, Wisconsin, Ohio, Minnesota, Puerto Rico, and the U.S. Virgin Islands. Great Lakes employs over 1,200 professionals.  Madison, Wisconsin is where Great Lakes is headquartered.

Great Lakes plays a crucial role in the FFEL Program.  The Federal Family Education Loan Program is a student loan program that was authorized by the Higher Education Act of 1965.  These programs are Federal Stafford, Federal Plus, and Federal Consolidation Loans.  These programs are reinsured by the federal government, funded by lenders, and guaranteed by guarantors such as Great Lakes.

Great Lakes Higher Education Corporation acts as a point of contact to increase student loan origination, servicing, and disbursement.  They work with a variety of customers such as borrowers, secondary schools, and lenders.

After writing about the student loan scandals’ that were going on, I’m relieved to know a company like Great Lakes is put in a position to enforce federal student loan rules.  Great Lakes Higher Education Corporation has been a servicer and guarantor for over forty years.  There guiding principle is “Doing what’s right” now that is a statement to ensure security for student borrowers.