They accused Great Lakes of violating the articles of FCRA (abbreviated as Act of Fair Credit Reporting). This is in direct violation of the C.A.R.E.S act section 3513(d). Jeff Richardson, vice president for marketing and communications for VantageScore Solutions, said the company would not comment due to ongoing litigation. The Trump administration has been rushing to fix the errors made by a company the federal government... What Is Next Gen and What Does It Mean for Federal Student Loans?   However, this typically does not have a dramatic effect on your ability to get non-educational loans since many lenders are more interested in your current monthly payment obligations, which are zero while still in school, as opposed to your actual loan balances. I looked through my report to see what had changed and I saw that my student loans accounts were all closed. Now a part of Nelnet, Great Lakes Higher Education Corporation was previously one of the four largest federal student loan servicing agencies in the US, with loans of over $51 billion to more than 10 million borrowers. But Wu said the mistake did not lead to a drop in FICO scores so someone who was seeking a loan might have been OK if the lender was using the FICO score, as most do. Through multiple glitches, Nelnet sent your loan to collections instead of marking your loan as paid in full on your credit report. When we fall short of our goal, our focus is to communicate openly and resolve the issue as soon as possible.". Public Service Loan Forgiveness program was created in 2007 when George W.Bush was president. Before you apply for a loan or mortgage, it may be wise to ask what kind of scoring model the lender will use. Debt relief was welcome this spring but the credit scoring mix-up came at a time when he was working hard to rebuild his score. Find out how Federal Student Aid partners with loan servicers to be here when you need help. Opinions expressed by Forbes Contributors are their own. Yet, he's now hopeful, some fixes will take place sooner rather than later. Great Lakes, Kiser said in an email, reported information relating to repayment borrowers May 6 to the credit reporting agencies in a way it believed would not have a negative impact on credit scores. Method Great Lakes Educational Loan Services Ombudsman Contact Information : Phone (866) 348-0708 : Fax (866) 451-1183 . While Great Lakes have had their up and downs and still far from perfect, a lot of students who dealt with them rated the company with a 3.8 out of 5 stars and that is not too bad. What it’s offering: Great Lakes Educational Loan Services Inc. has a coronavirus information page that provides details about the CARES Act and the suspension of payments and interest accrual on all federally held student loans until Dec. 31, 2020 If you have questions about your account, you can call 1-800-236-4300 or complete an email form. This mistake - which may have been due to a “coding error” may have impacted as many as 5 million student loan borrowers. — Izzak Mireles (@izzak_mireles) May 13, 2020. Chi Chi Wu, staff attorney at the National Consumer Law Center, said the Great Lakes accounts were wrongly marked as "deferred," which influenced the drop in the VantageScores used by Credit Karma. Harrington already faces enough hurdles. For example, plaintiff Cody Hounanian, program director at the nonprofit Student Debt Crisis, learned that his credit score declined after his federal student loans were paused. The lawsuit states that Great Lakes, along with its parent company, services 50% of all student loans in the United States. Additionally, payments were to be reported as current, or on time, under the act. But each month was to be treated in the credit reporting process as if a loan payment was made. As a result, borrowers are not required to make federal student loan payments. For consumers, it's yet another headache associated with lost jobs, fewer paid hours and other financial challenges related to the COVID-19 crisis. Great Lakes is one of the several servicers of federal student loans. Then in a matter of days, his score unexpectedly tumbled by 91 points in May. 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