Student Loan Borrowers: Gripes About Loan Servicing Continue
Struggling to pay the bills each month is a way of life for far too many citizens in the US, and it is a trend only increasing since the total amount of household debt rose to $13.15 trillion by the end of last year. While the mortgage and the car already play their usual roles in sucking our wallets dry each month, student loan payments are also one of the primary bills consumers are responsible for; in fact, student loan debts, averaging $47,047, are higher than credit card ($15,983) or auto debt ($27,755) for most households.
Younger borrowers just out of school may have an exceedingly hard time adjusting to monthly payments of $350 or more, with graduate students struggling even further after taking out loans that are three times as much due to high tuition rates. And while sometimes insurmountable financial demands top the list for student loan borrowers, they have numerous other problems with the process overall, most of which include servicer issues.
Recent news shows that federal loan servicers received the most criticism from borrowers, and especially as the Consumer Finance Protection Bureau (CFPB) began taking note of complaints outside of the private student loan servicing realm in 2016. Grievances doubled once the CFPB opened the floodgates to hearing from federal student loan borrowers, making it clear that they were unhappy due to a wide range of reasons, including:
- Mishandling of payments
- Erroneous information
- Poor customer service
- Service fees
- No luck in reducing or delaying payments
And while all too many student loan borrowers feel like their voices are not being heard and that complaints do little to help, a report from the CFPB released in 2017 states that due to complaints, over $750 million was awarded in debt relief to borrowers thanks to changes in government regulations. Such changes allowed for reduced interest rates and did away with auto-defaults via private loan servicers. Complaints from student loan borrowers around the US were also used by the CFPB to bolster the case against Navient (responsible for 64% of incoming complaints to the CFPB!).
“When borrowers are empowered to stand up for themselves, they can shape policy and spur government to take action,” said CFPB student loan ombudsman Seth Frotman.
If you are a student loan borrower and worried about delinquencies or a default—on a student loan or any other debt—consult with Fitzgerald & Campbell, APLC regarding your options. With decades of experience in helping clients navigate areas such as student loans and other debt issues, our attorneys can sit down with you and review your case. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at or email us at email@example.com.
Posted in: Student Loan Debt