Consumer complaint received 2018-05-17
Company: GREAT LAKES
State: MT
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't temporarily delay making payments

Complaint:
This complaint is against Great Lakes Student Loan Servicing. 

I have a Parent Plus loan with Great Lakes. My daughter makes all the payments. She pays {$50.00} a month as agreed. The payments are automatically withdrawn. She has not missed a payment in the past 18 months and we expected that by now this would be back into repayment status and out of default. 

I am seeking to be a first time home buyer. I can not get a mortgage until my credit report shows the default is removed. 
My daughter has been in contact with Great Lakes over the passed year asking how to get this loan out of default, but she was told only by paying it off in full. I didn't believe this to be such a harsh truth. 

I contacted Great Lakes onXX/XX/XXXX and asked how I could bring it out of default status. I was told that it can not come out of default except to 1 ) pay it in full or 2 ) consolidate it. 

I do not have the {$19000.00}. ( The original loan is {$16000.00}, but they have added fees ). 
Thus I have requested a consolidation from XXXX XXXX, where my loans are. I work for a non profit and I have my loans all consolidated- some that originated with Great Lakes. I asked Great Lakes why this loan was left out, and the response was that I never had any other Great Lakes loan. ( I had my own, plus another of my daughter 's consolidated that were Great Lakes. ) XXXX XXXX is very helpful and is expediting the processing of the consolidation on their end. It's just a matter of Great Lakes responding to the request. I called Great Lakes again today ( XX/XX/XXXX ) to request that they expedite on their end so that my loan can be removed from Default so that I may still get the opportunity to purchase a home. ( I have a window of affordable opportunity that is rare. ) The loan counseloXXXX was not concerning herself with assisting my request. She acknowledged that the XXXX XXXX consolidation request had been received, but it might not be processed for 90 days and if I didn't agree to a payment today that I could get my wages garnished. Her concern was to get me to pay {$70.00} payment today. I reminded her that my daughter 's automatic payment {$50.00} comes to them on the 23 every month. The representative insisted that I make a payment of {$70.00} today and implied that if I did not that I was not being cooperative therefore they would have to take action. I asked to speak with the Consolidation department but she said, " They are behind closed doors and no one gets to speak with them. '' I had to hang up because I felt harassed and not reaching resolve. 

It seems that Great Lakes is trying to hold on to the loan for a few more months to collect " {$70.00} of interest that is accruing each month. '' This is serious predatory lending especially if they request a garnishment of my wages when I have applied for a consolidation out their servicing.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation