Statement from Great Lakes Higher Education Corporation & Affiliates Regarding Student Loan Collection Fee Policies

Madison, Wis., March 21, 2017—In light of today's D.C. District Court filing seeking dismissal of a federal lawsuit against the U.S. Department of Education over student loan collection fee policies, the Great Lakes Affiliated Group Guaranty Agencies (Great Lakes Higher Education Guaranty Corporation, United Student Aid Funds, and Northwest Education Loan Association) wish to clarify their collection fee practices.

Since the U.S. Department of Education issued a Dear Colleague Letter on July 10, 2015, our guarantors have not assessed collection fees on borrowers who entered into rehabilitation agreements within 60 days of default on or after July 10, 2015. Notwithstanding the Education Department's March 16, 2017, decision, prompted by a request from a federal judge, to withdraw that Dear Colleague Letter, the Great Lakes Affiliated Group Guaranty Agencies will continue their practice of not assessing collection costs on borrowers who agree to rehabilitate their loans within 60 days of default.