USDOE/GLELSI on Your Credit Report (2023)

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Updated on July 14, 2023

Ever come across “USDOE/GLELSI” on your credit report? It’s linked to a federal student loan you might hold. Here’s the breakdown:

  • “USDOE/GLELSI” stands for “U.S. Department of Education/Great Lakes Educational Loan Services Inc.”

  • It signifies a loan serviced by this organization.

Notice this loan marked as closed on your report? Don’t jump to conclusions just yet. Here’s why:

  • This status isn’t due to loan forgiveness by the Biden administration.

  • Instead, it signals your loan is moving to a new home: Nelnet.

This shift is part of a long-term plan:

  • Great Lakes is winding down its federal student loan services.

  • It’s transferring its operations to Nelnet.

Still got questions? Let’s dive in and clear up any confusion.

Understanding USDOE/GLELSI

The U.S. Department of Education (USDOE) is the federal body overseeing education and student loans. Great Lakes Educational Loan Services Inc. (GLELSI), which has now become Ascendium Education Group, is a nonprofit loan servicer based in Madison, Wisconsin.

This company collaborates closely with the USDOE, managing federal student loans and borrower accounts. That’s why you might see this notation on your credit report.

As part of its ongoing evolution, Great Lakes is transferring its loan management duties to Nelnet, another federal student loan servicer. Nelnet acquired Great Lakes in 2018, but the two entities handled servicing separately. This transition began in March 2022 and is expected to wrap up by the end of June 2023.

If you hold a USDOE/GLELSI loan, this means your loan is managed by Great Lakes Loan Services, now known as Ascendium Education Group. Should your loan be in the process of transfer, you’ll be notified two weeks before your transfer date and will receive subsequent notification from Nelnet once the transfer is complete and a new federal student loan account number is assigned.

During this transfer process, it’s vital to ensure your monthly payments continue seamlessly to avert any potential negative effect on your credit score. If you encounter any issues or have queries about the transfer, contact Ascendium Education Group, formerly Great Lakes Loan Services, at 1 (800) 236-4300.

Seeing “closed due to transfer” on your USDOE/GLELSI loan account means your loan has shifted to a new servicer. This is a typical occurrence when a borrower defaults, applies for programs like Public Service Loan Forgiveness, or when servicers end their contract with the loan holder, such as during the ongoing transfer of loan servicing from Ascendium (formerly Great Lakes) to Nelnet.

Although the transfer itself shouldn’t impact your credit, managing the transition smoothly to maintain your credit score is crucial.

Here’s how you can navigate a USDOE/GLELSI student loan account closed due to transfer:

  1. Check notices: Review any correspondence from the Department of Education and your original servicer detailing the transfer.

  2. Reach out to the new servicer: Confirm the transfer and find out how to continue your payments.

  3. Create an online account: Follow your new servicer’s instructions to set up an online account.

  4. Stay on top of payments: Make sure to continue timely payments to the new servicer.

  5. Monitor your credit report: Ensure the transfer reflects accurately on your report.

  6. Resolve discrepancies: Contact your old and new servicers to resolve any issues you spot.

Being proactive during this transfer period can help you maintain a positive credit history and prevent any surprise dips in your credit score.

Maintaining Good Credit: The Role of Loan Repayment

Maintaining a good credit score, which is crucial for future borrowing, relies heavily on timely loan repayments. It’s a testament to your financial health, leading to lower interest rates and favorable loan terms.

Here are a few key factors you should understand:

  • Different Repayment Plans offer various ways to repay your loans. Although these plans differ, their common goal is to encourage timely payments. Choosing an income-driven plan won’t add to your debt, but any delay can affect your credit score negatively. Sticking to your repayment schedule helps to maintain your credit score.

  • Deferment and Forbearance offer temporary relief from your loan payments. But these pauses won’t harm your credit score but be cautious of any missed payments before these pauses. Remember, accrued interest during this period could increase your future bills.

  • Loan Consolidation involves creating a new loan to pay off your old ones. This process can cause a temporary dip in your credit score, but making timely payments on your consolidated loan can help your score recover.

Remember, your credit score reflects your financial trustworthiness. Making on-time repayments, understanding your repayment plan, and using deferment, forbearance, and consolidation wisely are the key strategies to maintaining a robust credit score.

Related: Does Student Loan Default Affect Your Credit Score?

Deciphering Loan Forgiveness with USDOE/GLELSI

Federal loan forgiveness might sound like a magic wand – poof, and your student loans disappear! But it’s a real deal, especially for USDOE/GLELSI loans. Managed by Great Lakes Loan Services, now Ascendium Education Group, these loans could be written off after meeting specific conditions.

There are a few paths leading to this debt-free dream:

  • Public Service Loan Forgiveness (PSLF): Serving society can pay off. After 120 payments and with a qualifying job in government or nonprofit, the rest of your Direct Loans could be forgiven.

  • Teacher Loan Forgiveness: Educating future generations in low-income schools or educational service agencies could wipe up to $17,500 off your Subsidized and Unsubsidized Direct or Federal Stafford Loans.

  • Income-Driven Repayment (IDR) Forgiveness: Stick to an IDR plan, and your balance could disappear after 20 or 25 years of qualifying payments.

How to Connect with USDOE/GLELSI

Got queries or concerns about your loan status? Here’s how to reach out:

U.S. Department of Education:

  • Address: 400 Maryland Ave, SW, Washington, DC 20202

  • Phone: Federal Student Aid 1-800-433-5243

Great Lakes Loan Services (Ascendium Education Group):

  • Address: 2401 International Lane, Madison, WI 53704

  • Phone: (800) 236-4300

How to Dispute USDOE/GLELSI Errors on Your Credit Report

Navigating the realm of personal finance, particularly when it involves student loans, can be complex. If you spot discrepancies related to a closed USDOE/GLELSI student loan account on your credit report, follow these steps to dispute it:

  1. Review your credit report: You’re entitled to free credit reports from Experian, Equifax, and TransUnion. Identify any incorrect entries related to your USDOE/GLELSI loan.

  2. Gather evidence: Compile records of monthly payments, correspondence with loan servicers, or proof of identity theft. These documents will substantiate your claim.

  3. File a dispute with the credit bureaus: Under the Fair Credit Reporting Act (FCRA), you have the right to dispute inaccuracies on your report. Contact each bureau reporting the error, providing your contact information, the details of the issue, and your supporting documents.

  4. Contact Ascendium: Notify Ascendium (formerly Great Lakes Loan Services), your creditor, of the error. Provide your account number, an explanation of the error, and any supporting evidence.

  5. Monitor your credit report: Keep a close eye on your credit report after filing disputes. Regular checks can help ensure the error has been resolved.

Remember, removing accurate information from your credit report isn’t possible. If you come across offers claiming to remove accurate information, know that these are typically scams.

Instead, focus on debt relief strategies, such as the income-driven repayment waiver and the new student loan payment plan implemented by the Biden administration. To learn more, visit, the Federal Student Aid (FSA) portal.

Bottom Line

Understanding your USDOE/GLELSI student loans, including repayment plans, deferment options, and loan forgiveness possibilities, is key to managing your financial future. Always stay on top of loan payments, communicate with your servicer, and remember — every payment counts towards your credit score and financial independence. Be proactive, be informed, and take charge of your student loans.

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