Is your student loan servicer charging you fees you don’t agree with, failing to allocate your payments the right way, or simply providing poor customer service? You’re not alone. Many borrowers have similar issues with their student loan servicers and the Consumer Financial Protection Bureau (CFPB) can help.
The CFPB is a government agency that protects consumers of financial products and services — everything from student loans and mortgages to credit reporting and debt collection. They supervise companies, enforce laws, and write new rules and regulations. They also accept consumer complaints.
Here’s how to submit a complaint to the Consumer Financial Protection bureau if you’re having problems with your loan servicer.
How to submit a complaint to the Consumer Financial Protection Bureau
1. Try to resolve the issue with your loan servicer first: Before submitting a complaint, the Consumer Financial Protection Bureau expects you to try and resolve the issue directly with your loan servicer. Only when it is clear to you that no resolution can be found should you bring in the CFPB to help resolve the matter.
2. Gather supporting documents: The CFPB encourages you to include third-party supporting documents with your complaint, such as statements, contracts, receipts, and letters.
3. Go to ConsumerFinance.gov/complaint: This is the official website of the Consumer Financial Protection Bureau where you’ll file your complaint.
4. Select “student loan” from the list of options: You’ll find this among 10 other options under “Choose a product or service to get started.” As you’ll see, student loans are one of many financial products and services for which the CFPB accepts complaints.
5. Select “federal student loan” or “private student loan”: Indicate what type of student loan your servicer is responsible for handling.
6. Describe what happened: The CFPB wants to hear your side of the story. What they do not want you to include in this section is any personally-identifying information (e.g., your name, account number, contact information, or Social Security number). They’ll ask for all of that later on in the submission process.
7. Indicate whether you want your story included in the CFPB Consumer Complaint Database: Once you’ve described what happened, you’ll have the option of choosing whether you want your story included in the Consumer Complaint Database – a public database that anyone can view.
If you’re not sure whether to make it public, keep in mind your story could be helpful to another borrower who is having a similar issue.
Of course, even if you decline to have your description of the situation made public, the details of your complaint may still be included in the database, minus any personally-identifying information. This includes basic information, such as:
- Date you submitted the complaint
- Product type (student loan)
- Sub-product (federal student loan)
- Issue (dealing with my lender or servicer)
- Description (if you elected to include it)
- Name and location of your servicer
- Their response to your complaint
- Whether you disputed the response or not
8. Follow the rest of the submission process as instructed:
- Describe your desired solution
- Provide requested personal information
- Provide requested product information
- Review your submission
- Submit the complaint
9. Wait up to 15 days for a response: Upon receipt of your complaint, the CFPB will forward it and any supporting documents, to your loan servicer for review. Your servicer then has up to 15 days to respond.
During this 15-day waiting period, you can expect to receive email updates from the CFPB. However, you are also free to login to the website as often as you like to check on the status of your complaint.
Another possibility is that, upon reviewing your complaint, the CFPB determines another government agency is better-suited to assist you. In that case, they will let you know they have forwarded your information to another agency for review.
10. Review the response from your loan servicer: Best case scenario, you’re thrilled with the response, which outlines the steps your loan servicer plans to take to resolve the issue to your satisfaction. Worst case scenario, you’re disappointed in the response, in which case you can submit a dispute, a process the CFPB will walk you through.
Examples of complaints from the database
When you select your issue – “Dealing with my lender or servicer” – you’ll have the option of selecting from one of the following sub-issues:
- Trouble with how payments are handled
- Don’t agree with fees charged
- Received bad information about my loan
- Need information about my balance/terms
- Keep getting calls about my loan
- Having problems with customer servicer
If you don’t see your sub-issue listed, it may be that the problem you are having is not actually specific to your loan servicer, but a different issue entirely, like “Getting a loan” or “Can’t repay my loan.”
Note that if your issue is financial aid eligibility or receiving your money for your federal student loan, the CFPB says to direct your complaint to the U.S. Department of Education.
How the CFPB uses your complaint information
Besides forwarding your complaint to your loan servicer and including some of your complaint information in the Consumer Complaint Database, the CFPB also:
- Shares complaints with state, federal, and law enforcement officials
- Sends a complaint report to Congress twice a year
- Analyzes complaint data to better enforce rules and write new ones
Other ways the CFPB helps student loan borrowers
Besides accepting complaints, the CFPB:
- Educates borrowers on student loan options
- Provides the Financial Aid Shopping Sheet and a customizable online tool to help borrowers compare financial aid offers
- Regulates the student loan industry, including oversight of predatory lending practices, payment processing issues, service member rights, and affordability of private student loans
The CFPB also has a direct line for consumers to call with questions. If you have any problems during the complaint process, do not hesitate to call the Consumer Financial Protection Bureau at 855-411-2372.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|