Expert Support for Borrowers and Schools Stems Sharply Rising Default Rates

Madison, Wis. -- Great Lakes Higher Education Guaranty Corporation recorded a cohort default rate of 2.9 percent on federal student loans entering repayment in federal fiscal year 2007--a rate nearly four percentage points lower than the national average of 6.7 percent for the same period. Great Lakes achieved its low rate even as the national default rate rose sharply from last year's 5.2 percent.

These results demonstrate Great Lakes' success in building brighter futures for borrowers, while positioning schools for the lowest possible default rates in the face of new challenges.

Great Lakes maintains its low default rate by providing expert support for borrowers and schools. Student loan borrowers receive one-on-one consultations, by phone and web chat, with repayment counselors who've achieved the best delinquency resolution rates nationwide for several years running. Schools receive a wide range of free resources to promote financial literacy and effective debt management, including Financial IQ® seminars presented by certified financial counselors, a personal finance curriculum developed by a leading research university, award-winning Student Success Guides, and a suite of other materials designed to help student loan borrowers transition successfully from school to career.

"Brighter futures are built when every student loan borrower receives the support they need to meet financial challenges and make good on their promise to repay," said Richard D. George, President and Chief Executive Officer of Great Lakes. "However federal student loan programs change, it's imperative that this winning approach be preserved for the benefit of all borrowers, every participating school, and the nation's taxpayers."

For more information about how Great Lakes achieves better results in default prevention, please contact Amy Kerwin at 608-246-1785.

About Great Lakes
Great Lakes Higher Education Corporation and Affiliates works with schools, lenders, and community organizations to change lives for the better through higher education. Great Lakes supports these partners with financial, educational, and operational resources that help students and families pay for college and build brighter futures. As a leading guarantor, originator, and servicer of student loans for over forty years, Great Lakes serves more than 2,700 schools and 1,400 lenders across the nation. One of the nation's largest integrated providers of student loan services, Great Lakes services student loans for more than two million borrowers and holds guarantees on nearly $51 billion in FFELP loans. Great Lakes member corporations serve as the designated guarantor for Minnesota, Ohio, South Dakota, Wisconsin, Puerto Rico, and the U.S. Virgin Islands under the Higher Education Act. Great Lakes is headquartered in Madison, Wisconsin, with operating centers in South Dakota, Ohio, Minnesota, and Wisconsin. For additional information, visit mygreatlakes.org.

Posted 09/16/09 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.