Lodging student loan borrower complaints is probably the furthest thing on your mind when you are an incoming freshman. College is a hectic time. Many of the classes are challenging. Professors mean serious business, and if you are not completely dedicated, it is easy to get left behind. You may be on your own for the first time, experiencing a completely new level of independence in terms of your academic life, social life, and financial life too. This is all a precursor to real adult life which is just around the corner. And for many students and graduates today, that reality is accompanied by significant student loans. Whether you have taken out private or federal loans—or both—you may find that there is little breathing room upon leaving school and entering the working world.
Millions of borrowers are feeling the weight of loans that were taken out before they truly understood how difficult repayment can be. A 22-year-old with a monthly payment of $350 may have a hard time paying just that one bill, not to mention all the other essentials like rent, a car payment, utilities, and more. And because of that, many are having to cut out as many expenses as possible—moving back home, relying on public transportation, and cutting corners wherever possible as they work to get their careers and savings in place. With the amount of effort that goes into paying off student loans, it is expected that payments will be handled correctly. Considering the stress levels generally associated with student loans—there is not much room for error on the part of the student loan servicer.
Companies such as Navient topped the list for issues listed by student loan borrowers, not surprisingly—and you can find out more in our recent blogs regarding charges brought against them. In a recent article by Forbes, findings by the Consumer Financial Protection Bureau (CFPB) show that as of June, complaints by student loan borrowers increased by 325 percent. There was quite a range of complaints too, including problems with:
- Payment processing
- Customer service
Thousands of complaints pinpointed specific issues such as overall communication, problems getting started with the income-driven repayment plan, issues with collections and credit reporting, and more (see the full report from the CFPB here). The report addresses ‘approximately 7,500 private student loan complaints, 11,500 federal student loan servicing complaints, and approximately 2,200 debt collection complaints related to private or federal student loan debt handled between March 1, 2016 and February 28, 2017.’
Because of such inadequacies, it is crucial to keep tabs on what you have paid in and how much you continue to owe. If you are having issues regarding your loan or are concerned about your student loan debt overall, contact Fitzgerald & Campbell, APLC, a law firm with decades of experience in helping clients to explore their financial options. Let us review your case and help you decide the best route. We are here to help you!