Great Lakes Student Loans Interest Rate [Step By Step Guide]

Great Lakes Student Loans Interest Rate: Great Lakes is an independent and transparent marketplace for the student loan. It does not offer loans but serves as a guarantor as well as the loan servicer. It provides a point of contact to the students over the time of their loans. It also has a user-friendly website and mobile app to help the borrowers access their loan information and make payments.

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Currently, Great Lakes is federal student loan service, if you know about this you can save your time and money. If you have a student loan, there is great chance that you have at least heard of Great Lakes student loans. It offers its services to the millions of the students, working with 6,000 schools & 1,100 lenders. It also claims that it has provided $130 million in the form of scholarships, grants and college advising services to date.

Great Lakes Student Loans Interest Rate

Great Lakes Student Loans Interest Rate

  1. In business more than 40 years.
  2. The debt rate reduces automatically.
  3. Provides useful information on how to manage the loans and repayment options.
  4. Only services federal loans.

Great Lakes Student Loans Interest Rate

Federal student loans are the loans you apply for by filling out the Free Application for Federal Student Aid. The federal government issue the loans but they are serviced by private companies such as FedLoan Servicing, Great Lakes, Navient and Nelnet.

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The interest rate depends on the loan type and the first disbursement date of the loan. The rate of interest varies on your credit score and ability to repay the loan. The federal student’s loans have fixed rates that mean your rate won’t change throughout the life of the loan.

Type of the Loan Borrower Type Rate of Interest

  • Direct Subsidized/ unsubsidized Undergraduate 4.45%
  • Direct unsubsidized Graduate 6.0%
  • Direct PLUS Graduate, parents 7.0%
  • Perkins Loans Undergraduate, graduate 5.0%

Interest is calculated as the percentage of your principal of loan amount. The interest accrues daily so loans with longer terms accrue more interest. In order to save the money of interest throughout the life of your loan, pay it off as early as possible.

Repayment of student loan

The government fixes the repayment plans as well as the benefits of federal loans. The benefits of federal loan such as income-based repayment, deferment options and all services must offer them. In case a borrower doesn’t sign up for a specific repayment plan, the Great Lakes student loan will automatically be put on the standard 10-year plan with fixed payment each month.

While making payments, the borrowers can set up and auto-pay and get a .25% interest rate reduction on the direct loans. You can pay the amount through the website, mobile app, over the phone or through email. The website of the company provides a useful article to manage loans and repayment options.

As you start the making payment on your student loans, a larger percentage of your payment goes towards interest and a smaller portion goes toward your principal.

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