Despite this law, plaintiffs allege that their credit score was damaged anyway. You can visit StudentAid.gov to see a list of our trusted federal student loan servicers, all of which are fully vetted. "An updated credit file was provided to the credit reporting agencies on May 15," Kiser said, "and all four reporting agencies have processed the file. Find out how Federal Student Aid partners with loan servicers to be here when you need help. "People who are having economic hardship during COVID-19 should be checking their credit report regularly," Wu said. It's important to note that, VantageScore stated: "When accounts are reported with a natural disaster reporting code, information that would normally have a negative impact on a consumer’s credit history is instead 'set to neutral' and thus is not included when calculating the consumer’s credit score. When you take student loans from the Department of education you can't pick your student loan servicer from the beginning, but if Great Lakes happen to be your student loan servicer you are lucky!. In the meantime, if your student loans are serviced by Great Lakes, you should check your credit reports. Zack is the Founder & CEO of Make Lemonade (www.makelemonade.co), a leading online personal finance company that empowers you to live a better financial life. Opinions expressed by Forbes Contributors are their own. points. Click to learn how GLCU can serve you. They are tasked with administering student loans, taking your payments and adjusting your payment terms should you need some changes implemented. Great Lakes services Federal Family Education Loan Program (FFELP) loans, Federal Direct Loan Program (Direct Lending) loans, and private loans. The plaintiffs allege Great Lakes reported borrowers’ student loans as “deferred,” a status that suggests they can’t meet the terms of their loan agreement. I got a notification that my credit score dropped 40 (!!) Typically, you can request one free credit report from each of the three major bureaus — Equifax, TransUnion and Experian — each year. Through multiple glitches, Nelnet sent your loan to collections instead of marking your loan as paid in full on your credit report. On Monday, Harrington said that according to Credit Karma his TransUnion score increased 85 points as of June 7. Harrington had been regularly monitoring his credit score via Credit Karma after struggling in the past to keep up on bills. If you take care of your student loans, they will be great for your credit. "Immediately, Great Lakes began researching these borrower accounts and determined there was an inconsistency between Great Lakes reporting and that of other student loan servicers," he said. As a result, his credit score plummeted and he says he was unable to buy a home, which resulted in a “measurable, immediate financial loss.” Following complaints from borrowers, Great Lakes has publicly admitted the mistake in a tweet on Twitter and says it will correct the error retroactively. Then in a matter of days, his score unexpectedly tumbled by 91 points in May. As a result, borrowers are not required to make federal student loan payments. He had been in a car accident a few years ago, unexpectedly had to buy a car and then his score dropped even further when he took out the new car loan, as he juggled student loan debt and medical bills. 7 months ago. Who is Great Lakes Educational Loan Services? Some borrowers with student loans serviced by Great Lakes saw their credit scores drop after payments in forbearance were reported incorrectly. "So most of that 91 point drop has been recovered," Harrington said. 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