Great Lakes Educational Loan Services continues to affect millions of borrowers’ credit reports, here’s what you need to know.
Great Lakes Educational Loan Services was one of the largest federal student loan servicers in the U.S., responsible for managing billions in federal loan payments on behalf of the Department of Education.
If you've ever taken out a federal student loan, there's a good chance they were the company handling your payments.
But here's why you should pay attention: even though Great Lakes stopped servicing federal loans in 2022, many borrowers still find their name lingering on credit reports. Sometimes with outdated, duplicate, or incorrect information. And that can affect your credit score, loan eligibility, or even mortgage approval.
Over my 17 years in finance and credit repair, I've helped thousands of clients navigate student loan issues on their credit reports. Great Lakes entries are among the most common problems I see.
This guide will walk you through exactly what Great Lakes is, why it might be affecting your credit, and the specific steps to clean up your report.
What Is Great Lakes Educational Loan Services?
Great Lakes Educational Loan Services was one of the largest federal student loan servicers in the United States. For years, they managed millions of borrowers' federal student loans, handling everything from payment processing to customer service.
But here's what many people don't know: Great Lakes stopped servicing federal student loans in December 2021.
In 2022, most Great Lakes accounts were transferred to other servicers, primarily Nelnet. This mass transfer created a perfect storm of credit reporting errors that I'm still helping clients resolve today.
Great Lakes handled federal student loans like:
- Direct Subsidized and Unsubsidized Loans
- PLUS Loans for parents and graduate students
- Consolidated loans
They weren't a lender, they were the middleman between you and the Department of Education.
Why Great Lakes Appears on Your Credit Report
There are several reasons Great Lakes might show up on your credit report, and not all of them are problematic.
Legitimate reasons include:
- You had federal student loans serviced by Great Lakes
- You made late payments while they were your servicer
- You defaulted on loans under their management
Problematic reasons include:
- Your loans were transferred but Great Lakes is still reporting as active
- Duplicate entries showing both Great Lakes and your new servicer
- Incorrect payment history or account status
- Outdated information that should have been removed
In my practice, I see the transfer-related errors most frequently.
When loans moved from Great Lakes to Nelnet or other servicers, the handoff wasn't always clean. Some borrowers ended up with two entries for the same loan, one from Great Lakes and one from the new servicer.
Others found that Great Lakes continued reporting their loans as active months after the transfer.
Can You Remove Great Lakes From Your Credit Report?
The short answer: YES, but… It depends on accuracy.
You cannot remove legitimate, accurately reported information from your credit report. If Great Lakes correctly shows your payment history while they serviced your loans, that information stays.
However, you can remove:
- Inaccurate account information
- Duplicate entries from loan transfers
- Outdated information that should have been updated
- Incorrect payment histories
- Wrong account balances or statuses
The 7-year rule applies here.
Late payments and closed accounts typically fall off your credit report after seven years. But if Great Lakes is still showing as an active servicer when your loans have been transferred, that's an error you can dispute immediately.
From my experience, about 60% of Great Lakes credit report issues I encounter involve transfer-related errors that can be successfully removed.
Steps To Remove Great Lakes From Your Credit Report
Here's the exact process I use with my clients to clean up Great Lakes entries:
Step 1: Pull Your Complete Credit Report
Get your free credit reports from all three bureaus at AnnualCreditReport.com. Since 2020, you can access free weekly reports.
Look for Great Lakes entries across all three reports (Experian, Equifax, and TransUnion). They might appear differently on each bureau, so check carefully.
What to look for:
- Account status (open vs. closed)
- Payment history
- Account balance
- Date of last activity
- Whether your loans show as transferred
Step 2: Verify the Accuracy
This is where my expertise really matters. Most people skip this crucial step.
Check these details:
- Is the account still showing as active when your loans were transferred?
- Are there duplicate entries for the same loan?
- Does the payment history match your records?
- Is the balance correct?
Gather your documentation:
- Payment records from Great Lakes
- Transfer notifications from your new servicer
- Account statements showing the transfer date
- Any correspondence about the loan transfer
Step 3: Contact Your Current Servicer First
If your loans were transferred, start with your current servicer (likely Nelnet).
Ask them to:
- Confirm the transfer date
- Verify they're reporting your loans correctly
- Request they notify credit bureaus of any Great Lakes reporting errors
This step often resolves the issue faster than going directly to the credit bureaus.
Step 4: Dispute With Credit Bureaus
File disputes online with all three credit bureaus. Be specific about what's wrong:
For duplicate entries: "This account was transferred to [New Servicer] on [Date]. Great Lakes should no longer be reporting this loan as active."
For incorrect information: "The payment history/balance/status is incorrect. Supporting documentation attached."
For outdated information: "This servicer relationship ended on [Date] when loans were transferred. This entry should be updated or removed."
Step 5: Send a Dispute Letter to Great Lakes
Even though Great Lakes no longer services federal loans, they may still handle credit reporting for transferred accounts.
Send a certified letter requesting:
- Correction of inaccurate information
- Removal of duplicate entries
- Update of account status to reflect the transfer
Below is a chart showing the average success rate of different types of credit report disputes.
These statistics highlight how likely each issue is to be resolved in your favor when properly challenged, especially with expert support.
Step 6: Consider a Goodwill Letter (Optional)
If you have legitimate late payments with Great Lakes but have since improved your payment history, you might try a goodwill letter.
This won't work for everyone, but I've seen success when clients can show:
- Consistent on-time payments since the issues
- Valid reasons for past difficulties (medical emergency, job loss)
- A genuine commitment to responsible borrowing
Common Mistakes To Avoid
After 17 years in credit repair, I've seen these mistakes repeatedly:
Disputing accurate information. If Great Lakes correctly reported your payment history while they serviced your loans, don't waste time disputing it. Focus on actual errors.
Ignoring all three credit bureaus. Great Lakes might appear differently across Experian, Equifax, and TransUnion. Check and dispute with all three.
Not following up. Credit bureaus have 30 days to investigate disputes. If you don't hear back, follow up. Don't assume no news is good news.
Disputing without documentation. Support your disputes with evidence. The more documentation you provide, the better your chances of success.
Forgetting about the new servicer. Make sure your current servicer is reporting accurately too. Sometimes fixing the Great Lakes issue creates problems with the new servicer's reporting.
What If Great Lakes Is No Longer Your Servicer?
This situation affects millions of borrowers.
Here's what you need to know:
If your loans transferred to Nelnet or another servicer:
- Check that your new servicer is reporting correctly
- Dispute any Great Lakes entries that should be marked as transferred
- Look for duplicate reporting of the same loans
Common transfer issues we resolve:
- Great Lakes showing loans as active when they should be closed/transferred
- Both Great Lakes and the new servicer reporting the same loan
- Payment history not transferring correctly to the new servicer
- Incorrect balances due to timing of the transfer
The fix: Usually involves disputing the outdated Great Lakes entry while ensuring your new servicer's reporting is accurate.
You Can Remove Great Lakes Educational Loan Services
Great Lakes entries on your credit report aren't automatically problematic, but transfer-related errors are incredibly common.
The key is understanding what should and shouldn't be there. If your loans were transferred but Great Lakes is still reporting as your active servicer, that's an error worth disputing.
If you're seeing duplicate entries, incorrect payment histories, or outdated account statuses, you have good grounds for removal.
My advice after 17 years in this business: Don't ignore credit report errors, but don't dispute accurate information either.
Focus your energy on legitimate problems that are actually hurting your credit score.
The student loan servicing landscape has changed dramatically in recent years. Many borrowers are dealing with reporting confusion from these changes. You're not alone, and in most cases, these issues can be resolved with persistence and the right approach.
Need help removing student loan errors from your credit report? Consider working with a qualified credit repair professional who understands the complexities of student loan servicing transfers and credit reporting requirements.
Remember, clean credit reports don't happen overnight, but they're worth the effort. Every error you remove is a step toward better financial opportunities.