Trying to make a complaint against your student loan lender or servicer may feel like screaming into the void.
In 2019, federal student aid customers made 44,155 complaints using the Federal Student Aid Feedback System, according to the most recent report of the Federal Student Aid Ombudsman. The most common complaints dealt with repaying loans.
The Department of Education, in an email, said while all complaints will be reviewed and responded to, 鈥渨e cannot guarantee a customer a specific result or change in their current situation.鈥�
Don't let that stop you from voicing your concerns to the powers that be.
Before you send off a fiery email, set reasonable expectations about the outcome 鈥� it may not be what you want. But it鈥檚 possible to get a result if you know the right steps to take.
START WITH YOUR LENDER OR SERVICER
You鈥檒l see results fastest by contacting your private lender or federal loan servicer first, says Betsy Mayotte, president and founder of the Institute of Student Loan Advisors.
Reach out to the lender or servicer鈥檚 highest office of customer service, whether that鈥檚 a consumer advocate, ombudsman or claims department. Its general call
Send an email first to the company鈥檚 general customer service address, which will get your message to the right person, says Mayotte. Written correspondence ensures you have a paper trail. A phone call might seem easier, but it鈥檚 more difficult to track interactions with your lender or servicer.
When you make a complaint, document everything and keep your narrative consistent, experts say. It also helps to be clear about what you鈥檙e asking for, says Bonnie Latreille, director of research and advocacy at the
鈥淚t鈥檚 really easy for any company to send off a form letter,鈥� she adds. 鈥淏ut if a borrower says, 鈥業 have called and sought relief, and you advertise relief on your
ESCALATE YOUR COMPLAINT
If your issue isn鈥檛 resolved with your lender or servicer, bring it to the government. All federal loan borrowers should submit complaints through the Federal Student Aid Feedback System. Private loan borrowers should submit complaints to the Consumer Financial Protection Bureau.
When you submit to the feedback system, you can expect a response via email or letter within 15 days and typically get a resolution within 60 days, according to an email from the Education Department. If not, you can contact the Federal Student Aid Ombudsman Group.
SEEK OUTSIDE HELP
Your state attorney general鈥檚 office, state consumer protection office and congressional representative are additional resources to lodge complaints with.
There鈥檚 also no wrong time in the complaint process to seek advice.
You can pay for legal services, but these services may be expensive, says Adam Minsky, a Massachusetts attorney who specializes in student loans issues. He recommends contacting an attorney only when you鈥檝e exhausted all your options.
LEARN HOW TO CHANGE YOUR LENDER OR SERVICER
If all else fails, it is possible to change your lender or servicer.
You can refinance private and federal loans with a private lender. And federal borrowers can pick a new servicer after consolidating with the government.
But refinancing federal loans costs you benefits such as income-driven repayment options and opportunities for forgiveness, and consolidation increases the amount you repay overall.
You鈥檙e better off staying with your current servicer, if you can, and going through complaint and dispute channels.
YOUR COMPLAINTS MATTER
Seth Frotman, formerly student loan ombudsman at the Consumer Financial Protection Bureau, says complaints matter 鈥� and not just for resolving your own problem.
鈥淎t nearly every single law-enforcement agency or regulatory agency, this is how they spot trends, this is how they see what鈥檚 going wrong in the markets,鈥� says Frotman, now executive director of the Student Borrower Protection Center.
For example, in 2017 the CFPB sued the federal loan servicer Navient based on borrowers鈥� complaints about its loan management practices. Following the CFPB鈥檚 action, attorneys general from around the country also sued Navient.
鈥淢istakes aren鈥檛 usually one-off situations,鈥� says Frotman. 鈥淚f it鈥檚 happening to you, it could often be happening to tens (or) hundreds of thousands of people.鈥�
____________________________________
This article was provided to The Associated Press by the personal finance
RELATED LINKS:
NerdWallet: How to change student loan servicers http://bit.ly/switch-student-loan-servicer
Consumer Financial Protection Bureau: Submit a complaint https://www.consumerfinance.gov/complaint/getting-started/
Federal Student Aid Feedback System: Submit feedback https://feedback.studentaid.ed.gov/s/?language=en_US
Anna Helhoski Of Nerdwallet, The Associated Press