If you’ve been scrolling through student loan news, you might’ve paused and asked yourself, Is there a lawsuit against Great Lakes Student Loans? You’re not alone—this question has been making the rounds among borrowers, especially with all the buzz around student loan forgiveness and servicer accountability.
If you manage your loans through MyGreatLakes, it’s only natural to wonder how any legal action might affect your account or repayment options. So let’s unpack what’s going on, what it means for you, and whether you need to worry.
Great Lakes: Overview and Role
Before we dive into legal matters, it helps to know exactly who we’re talking about.
Great Lakes Educational Loan Services was one of the major federal student loan servicers in the U.S., handling millions of accounts on behalf of the Department of Education. I used to get those letters with the Great Lakes logo and felt the same student-loan dread you probably know too well.
Here’s a quick breakdown of what they did:
- Managed repayment for federal student loans
- Processed income-driven repayment (IDR) applications
- Handled deferment and forbearance requests
- Communicated with borrowers about balances, due dates, and options
But in recent years, Great Lakes transitioned many accounts to Nelnet or other servicers, as the federal loan system overhauled contracts. This shuffle led to a whole new round of questions, confusion, and yes—legal scrutiny.
Legal Issues Surrounding Great Lakes
Let’s get into what’s actually triggered the lawsuits and investigations.
Claims against Great Lakes focus on misleading credit reporting and poor handling of forbearance and repayment options. Specifically, during the COVID-19 payment pause, some borrowers saw their paused loans reported incorrectly as “deferred”—which can hurt your credit score.
This is where the question, Is there a lawsuit against Great Lakes Student Loans? really comes into play for many.
Here are some of the key issues that have been raised:
- Incorrect reporting of paused payments as missed or deferred
- Miscommunication about eligibility for Public Service Loan Forgiveness (PSLF)
- Poor customer service that led to missed deadlines or misinformation
- Failure to accurately apply payments
A class-action lawsuit was filed alleging that borrowers were misled by inaccurate information about their loan status. That’s not a minor complaint—credit scores and long-term financial planning were at stake.
Cool tip: Always download your full payment history every few months. It’s boring—but it’s your backup if errors show up later.
In short: Legal action wasn’t random—it was sparked by real harm experienced by real borrowers.
The Lawsuit Timeline: What Happened and When?
While some lawsuits were aimed directly at Great Lakes, others named broader servicer groups including Nelnet, their parent company.
Here’s a simplified look at how things unfolded:
| Year | Event |
|---|---|
| 2020 | CARES Act pauses federal loan payments—reporting errors surface |
| 2021 | Borrowers report credit score drops linked to Great Lakes reporting |
| 2022 | Lawsuits filed in multiple states over misinformation and loan handling |
| 2023 | Class action picks up traction; investigations broaden |
| 2024 | Federal scrutiny continues as Department of Education revamps contracts |
One big issue? Many borrowers didn’t realize anything had gone wrong until they checked their credit report or were denied for PSLF because of errors they didn’t even know existed.
So yes, if you’ve felt like something wasn’t quite right with your loan file—there’s a decent chance it wasn’t.
Should You Worry If Great Lakes Was Your Servicer?
Here’s where I get a lot of panicked DMs from friends: “I had Great Lakes—does this lawsuit mean I’m in trouble?”
No, you’re not. But you should take a few proactive steps to protect yourself.
Although the question Is there a lawsuit against Great Lakes Student Loans? is valid, most borrowers aren’t directly named or involved. That said, affected borrowers could qualify for compensation or credit correction.
Here’s what I recommend doing right now:
- Check your credit report – Look for loan accounts marked as “deferred” during the pandemic pause.
- Review your payment history – Make sure payments were applied properly (especially if you’re going for PSLF).
- Log in to your current loan servicer – Confirm that your loan balance, interest, and repayment plan info is accurate.
- Document everything – Save PDFs of statements, application submissions, and emails.
If you notice anything off, you can:
- File a complaint with the Consumer Financial Protection Bureau (CFPB)
- Contact your new loan servicer for a dispute or correction
- Monitor updates about the class-action status to see if you’re included
Cool tip: Use tools like Credit Karma or Experian to get alerts for changes in your credit file. It’s like a watchdog for your financial health.
To wrap this up: Worrying? No. Staying informed and proactive? Absolutely yes.
Broader Impact on Student Loans
There’s something bigger at play here, and I want to make sure you see it too.
As lawsuits against student loan servicers pop up—including when people ask Is there a lawsuit against Great Lakes Student Loans?—we’re seeing a long-overdue accountability wave hit the industry. For too long, borrowers were expected to navigate confusing systems solo.
This legal heat has already led to:
- Contract reviews for major servicers
- Changes in loan forgiveness tracking and automation
- More oversight from the Department of Education
- Better borrower communication (in theory, at least)
While the system isn’t perfect—far from it—it’s trending in the right direction. Lawsuits shine a spotlight on the cracks, and that pressure is forcing change.
Cool tip: If you’re pursuing PSLF or IDR forgiveness, keep a spreadsheet with dates, calls, and screenshots. If there’s one lesson here, it’s: trust, but verify.
Final thought: Your loans may be paused, forgiven, or transferred—but your right to accurate service and honest information doesn’t go anywhere.
Conclusion
Although the question Is there a lawsuit against Great Lakes Student Loans? points to real concerns, it doesn’t mean everyone with a Great Lakes history needs to panic. Still, staying educated and vigilant is key.
Check your reports, document your data, and stay updated on legal news—it’s your best defense in a messy system.
Log into your loan account today. Just double-check. It takes five minutes and gives you peace of mind.
