Great Lakes helped borrowers combine federal student loans into a single Direct Consolidation Loan to simplify payments and access different repayment options. Consolidation streamlines billing but does not lower the principal; it can extend terms and affect eligibility for forgiveness programs, so confirm effects before consolidating.

Why borrowers used Great Lakes for consolidation

Great Lakes Educational Loan Services, Inc. has been a major student loan servicer for federal loans for many years. Borrowers used Great Lakes to consolidate separate federal student loans into a single loan so they could simplify monthly payments and manage repayment more easily.

What consolidation does (and doesn't)

Federal loan consolidation combines multiple federal loans into one Direct Consolidation Loan. Consolidation simplifies payments - you get one servicer, one bill and one due date - and it can make a borrower eligible for different repayment plans, including income-driven options. The consolidation interest rate is a weighted average of the original loans' rates, rounded up to the nearest one-eighth percent.

Consolidation does not reduce the total amount owed. It can extend the repayment term, which lowers monthly payments but can increase total interest paid over the life of the loan. Consolidation may also change eligibility for certain benefits tied to specific loan types, so borrowers should check details before consolidating.

How consolidation interacted with forgiveness programs

Consolidating can have important consequences for loan forgiveness programs. For example, some forgiveness or cancellation programs apply only to loans of a specific type. Consolidating FFEL or Perkins loans into a Direct Consolidation Loan can make those loans eligible for Public Service Loan Forgiveness (PSLF), but consolidating will usually create a new loan and can affect the count of qualifying payments toward forgiveness. Borrowers should confirm how consolidation affects their particular forgiveness track before proceeding.

Practical considerations for borrowers

• Compare monthly payment changes and the total interest cost over time.

• Confirm whether your existing loan benefits (such as borrower-based cancellation or borrower defense) will survive consolidation.

• If you're pursuing PSLF, verify how consolidation will interact with your qualifying payments.

• Contact Federal Student Aid (studentaid.gov) or the loan servicer for current enrollment and eligibility rules.

Conclusion

Great Lakes served as a common gateway for borrowers seeking consolidation and a simplified repayment experience. Consolidation can be a useful tool to manage federal student loan payments, but borrowers should weigh the trade-offs - particularly around long-term cost and program eligibility - and verify the current rules that apply to their loans.

1. Confirm current ownership and servicing status of Great Lakes Educational Loan Services, Inc. (possible acquisition or transfer of servicing) [[CHECK]]
2. Verify specific effects of consolidation on different forgiveness programs and whether pre-consolidation qualifying payments count toward PSLF in current rules [[CHECK]]