After the COVID-19 emergency relief measures expire on December 31, 2022, federal student loan repayment will start. In order for you to succeed with repayment, we want to help you get ready, answer your questions, and give you the assistance you require.
Ready to Repay Checklist
Even though it may seem a little intimidating to consider making payments after such a long time, please know that Great Lakes is here to assist you at every turn. The following steps can be taken right away to get you ready to manage your student loans because we want your repayment experience to be as easy as possible.
Step 1: Make sure you can access your Great Lakes online account
If you havent logged in recently, give it a go. We can help you access your account if you can’t remember your user ID, PIN, or password.
Step 2: Bring your contact information up-to-date
Update your account’s contact information if you’ve changed your email address or phone number since March 2020 or if you’ve moved. Verify your address, email address, and phone number are accurate by going to your Welcome page and selecting the Manage Profile section. If your name has changed, please give us a call.
Step 3: Check your payment amount and expected due date
Visit your Welcome page and look at the Repayment Planner section to review your previous monthly payment amount if you were already in repayment before the COVID-19 payment pause went into effect. This will assist you in budgeting for the cost once repayment is due.
The Repayment Planner on the Welcome page will show an estimated amount you’ll pay each month once the COVID-19 payment pause ends if you weren’t in repayment before it went into effect (for instance, you were in a grace period that has since ended).
Make a note of your first due date as well (which cannot be earlier than January 1, 2023) so you can adjust your monthly spending plan to begin paying off your student loans on time.
Step 4: Take action if you can’t afford your payments
If you are worried that you won’t be able to manage your payments once repayment starts, now is the time to take action. While youre on the Welcome page, select Explore Repayment Options. There, you can begin the application process for choices that might better suit your needs.
Step 5: Watch for notices from us
To assist you in getting ready for repayment, Great Lakes and Federal Student Aid have sent and will continue to send communications. Please carefully read these notices as they contain important information about what to expect.
We will send you a billing statement about three weeks prior to your due date as the end of the payment pause draws nearer. If you previously set up a bill-paying service with your bank, you might need to do so once more. Refer to “I previously used a bill-pay service to make monthly payments” See the FAQs below for information on how to continue using that payment method once repayment begins.
Additionally, you will still need to confirm your enrollment by logging into your mygreatlakes account if you previously used Auto Pay to make your monthly payments before March 13, 2020 and you haven’t done so. org account, selecting Payments, then selecting Auto Pay.
If you haven’t done so already, you must do so in order for your payments to continue to be made using Auto Pay. If you do not choose to continue with Auto Pay, it will be terminated and you will forfeit the 0. When the COVID-19 payment pause ends, you’ll need to make other payment arrangements and receive a 25% interest rate reduction. Log in to your mygreatlakes. org account, and you’ll be asked to confirm your Auto Pay enrollment.
Ready to Repay Timeline
Here is a quick overview of what to expect over the upcoming few months.
FAQs — Preparing for Repayment
Here are some inquiries and responses you might have as the COVID-19 payment pause comes to an end.
Review these Q&As to get ready to repay!
Making Payments
When the pause is over, go to your Welcome page and look at the Repayment Planner section to see an estimated amount you’ll pay each month.
View the Account Summary section on your Welcome page after logging in to see your balance.
If the amount of your prior payment changes, we will only send you a new payment schedule. If so, we will send you your payment schedule between 32 and 44 days before the first payment is due.
If you were making payments prior to the payment pause, your monthly payment amount shouldn’t have changed unless you applied for an income-driven repayment (IDR) plan, had your IDR payment recertified, or had it recalculated during the pause. It might be necessary to adjust your monthly payment amount if you were in a deferment or forbearance prior to the payment pause to make sure you can repay your loan(s) within the remaining term.
Payments will begin no sooner than January 1, 2023. Your Welcome page’s Repayment Planner section will include information about your specific first payment due date.
The payment suspension and 0% interest rate period expire on December 31, 2022. Depending on your preferred method of communication, we’ll send you a billing statement about 21 days before a payment is due. Make sure your online account’s contact information is accurate and current.
Absolutely. You might be able to reduce the balance of your loan faster if you keep making payments while there is a payment break. Once you’ve paid off all (if any) interest that accrued prior to March 13, 2020, a payment’s full amount will be applied to your principal balance. During the payment pause, paying less than your usual monthly payment amount is not subject to a fee.
Sure, just log into your account, choose Pay Online, or use our mobile app to make payments while the payment pause and 0% interest rate are in effect (through December 31, 2022). You can also mail payments to:
U. S. Department of Education P. O. Box 790321 St. Louis, MO 63179-0321.
Make sure your check has your Payment Reference Number on it.
We have a helpful article titled “How Payments Are Applied” in our Knowledge Center that explains how the amount you pay is allocated to principal and interest, even when payments are not required or you pay more than is required.
Make sure to make arrangements with your financial institution to resume payments by the due date if you plan to use your bank’s online bill payment service.
If entering an address is required when setting up the request for your bank’s bill-pay service, please use:
U. S. Department of Education P. O. Box 790321 St. Louis, MO 63179-0321.
Auto Pay
Log into your Great Lakes account and click Manage Payments to see if you’re currently signed up for Auto Pay.
If you want to sign up for Auto Pay but are not currently enrolled:
Once Auto Pay is configured, you’ll be informed of the day that payments will start being deducted from your checking or savings account. This notification will be delivered to your Message Center.
No. If you haven’t done so already, you must do so in order for your payments to continue to be made using Auto Pay. If you do not choose to continue with Auto Pay, it will be terminated and you will forfeit the 0. When the COVID-19 payment pause ends, you’ll need to make other payment arrangements and receive a 25% interest rate reduction. You will be asked to confirm your Auto Pay enrollment after logging into your account.
Yes. Log into your account and select Payments > Auto Pay to do so. You can change your settings there and designate Auto Pay as your preferred payment option.
Interest Capitalization
Since there has been no payment during the COVID-19 payment pause and the interest rate is zero, no interest has accumulated.
During the payment pause and through June 30, 2023, six months after the payment pause is supposed to end, any prior unpaid interest won’t capitalize (that is, be added to your principal balance). The earliest interest will capitalize would be July 1, 2023. Any interest capitalization with an effective date of March 13, 2020 through June 30, 2023 will be reversed and delayed by Great Lakes.
Consult the list of “Top Six Ways to Reduce What You Owe” and scroll to section #2 for more details on interest capitalization.
No. Your account was brought current with a non-capitalizing administrative forbearance prior to the application of the COVID-19 payment pause. No interest capitalization occurred when the pause began.
When the payment pause started on March 13, 2020, any accrued interest would not capitalize (i.e. be added to your principal balance) throughout the payment pause and until June 30, 2023.
Consult the list of “Top Six Ways to Reduce What You Owe” and scroll to section #2 for more details on interest capitalization.
Repayment Options
By signing up for an income-driven repayment (IDR) plan, you may be able to lower your monthly student loan payment. Payments under an IDR plan could be as little as 0 per month. Fill out an application for an IDR plan and check the box for the repayment option that will result in the smallest monthly payment. You can self-certify your eligibility online. In order to provide the information required to request an IDR plan over the phone, contact Great Lakes at (800) 236-4300.
We’ll need to ask you a few questions in order to help you determine which choice is best for your circumstances. From your Welcome page, log into your Great Lakes account and proceed as follows:
We encourage you to visit StudentAid.gov/debt-relief-announcement/one-time-cancellation for the most up-to-date information.
Yes, paused payments count toward PSLF as long as you meet all other qualifications. You will receive credit as though you made on-time monthly payments in the correct amount while on a qualifying repayment plan. Borrowers may receive credit toward PSLF during the payment pause if they later enter the PSLF Program. For more information, review the COVID-19 Public Service Loan Forgiveness page on Federal Student Aids website.
No, Great Lakes will never charge you anything to help you with your federal student loans. Contact us for free help with questions or concerns. Learn about our services and avoiding student aid scams.
Income-Driven Repayment (IDR) Plans
You can certainly apply for an IDR plan while there is a payment pause. The payment pause will end on January 1, 2023, and your request will go into effect on that day. You might benefit from applying right away so that your IDR plan is based on your current income. By submitting your request now, you may also avoid the potential rush of requests that could occur when payments resume.
If youre interested in applying for an income-driven repayment (IDR) plan, you may apply at StudentAid.gov. You can self-certify your eligibility online. You can also call Great Lakes at (800) 236-4300 to provide the information needed to request an IDR plan over the phone.
IDR recertifications must now be completed by July 1, 2023, at the latest. All IDR plan annual recertification due dates that fall on or after July 1, 2023 have now been advanced by one year. The new recertification date is October 1, 2023, for instance, if your IDR recertification was previously due on October 1, 2022.
Before it’s time to recertify, Great Lakes will send you a notification with your new recertification date.
Yes, you sure can. If your income has changed significantly, you can request a new payment amount based on your current income. To do so, visit StudentAid.gov, select the button next to “Recalculate my monthly payment,” and complete the recalculation request. You can also call Great Lakes at (800) 236-4300 to request an IDR plan recalculation over the phone. If you are approved for a lower payment, after the payment pause ends, your monthly payments will resume at the new lower amount.
Yes. Paused payments made during the COVID-19 forbearance are eligible for IDR forgiveness if all other requirements are met.
In-School and Grace Period Status
Check out StudentAid.gov for a summary of how the COVID-19 emergency affects students and in-school borrowers.
The COVID-19 payment pause will end on December 31, 2022, and your loan payments will still be suspended with a 0% interest rate. As an illustration, suppose that on October 15, 2021, your loans began to be repaid. Your payments would be stopped in this case from October 15, 2021, to December 31, 2022. During this time, the interest on your loans would be zero percent.
When the payment pause ends, we’ll put your student loans in the Standard Repayment Plan unless you’ve requested something different.
If you are worried that you won’t be able to afford your monthly payment when it starts, take into account income-driven repayment options. A plan for income-driven repayment (IDR) could assist in determining an affordable monthly loan payment amount.
If youre interested in applying for an income-driven repayment (IDR) plan, you may apply online at StudentAid.gov and select the box to be placed on the repayment plan that will provide you with the lowest monthly payment. You can self-certify your eligibility online. You can also call Great Lakes at (800) 236-4300 to provide the information needed to request an IDR plan over the phone.
Other Questions
Before the COVID-19 payment pause started, if you had been given a cancer treatment deferment, your loan(s) would have been put on hold. Your loans will be automatically put back into that deferment on January 1, 2023 if your cancer treatment deferment ended after December 31, 2022. Before payments resume, your cancer treatment deferment won’t need to be recertified. On or before July 1, 2023, you might be asked to recertify. Before it’s time to recertify, Great Lakes will send you a notification with your new recertification due date.
Your interest paid on your federal student loans for a specific tax year is documented in the 1098-E Student Loan Interest Statement. You may be able to reduce the amount of federal income tax you owe by deducting all or a portion of the interest you paid.
Most borrowers have not paid interest in the 2021 and 2022 tax years and will not receive a statement for those years because the payment pause and 0% interest rate were extended to cover all of 2021 and 2022. You should contact your tax advisor with any inquiries pertaining to your particular circumstance.
Additional advice for preparing for repayment to start after January 31, 2022 is provided below:
The best service is what Great Lakes strives to give you. Were in this together.
Approved Relief Measures under the COVID-19 Emergency
The advantages for borrowers of federal student loans owned by ED under the COVID-19 emergency are listed briefly below.
Through December 31, 2022, payments on student loans are suspended; you are not obligated to continue making payments after that date. Your account has been updated to reflect the latest extension.
For the period of March 13, 2020 through December 31, 2022, your interest rate stays at 0%.
You may pay at any time while the payment pause is in effect.
Months during which payments are paused and/or not due count toward income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) as long as you meet all other qualifications. For more information, review the COVID-19 IDR and Public Service Loan Forgiveness pages on FSAs website.
Additional Important Information
Here are some considerations for this payment suspension. Some of these will be applicable to all borrowers, while others will only be applicable to borrowers in specific situations.
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FAQ
Are student loans still accruing interest?
Will student loans be paused again after August 2022?
Before payments resume, borrowers of federal student loans — as well as the courts — have more time to understand the debt forgiveness process. The payment pause has been extended through June 30, 2023.
Do student loans accrue interest during moratorium?
That means your student loans will not accrue (i. e. , accumulate) interest during this time. If you are able, continuing to make payments online with your loan servicer has some advantages, including speedier loan repayment and a reduction in the overall cost of your loan over time.