Note that the situation for student loans has changed due to the impact of the coronavirus outbreak and relief efforts from the government and many lenders. Check out our Student Loan Hero Coronavirus Information Center for additional news and details.
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If you’re having issues with your student loan servicer or lender and can’t resolve them, you can always contact a student loan ombudsman. An ombudsman reviews both sides of the problem to help identify a solution.
Let’s look at what a federal student aid ombudsman — or a private student loan ombudsman — does and how to contact one. Specifically, we’ll look at:
- What a student loan ombudsman does
- Which issues an ombudsman can often resolve
- What to do before submitting a request to an ombudsman
- How to contact a student loan ombudsman
- Next steps after contacting an ombudsman
The Federal Student Aid (FSA) Ombudsman Group is an unbiased and confidential resource to use when you have issues with your federal student loans. The Consumer Financial Protection Bureau Ombudsman, which is also free of charge, is a similar resource for federal and private student loans. There are also some lenders and state governments that offer student loan ombudsman or advocate services.
If your account is wrongfully in default or the balance is incorrect, a student loan ombudsman can intervene.
A student loan ombudsman is a neutral contact, meaning they are not your advocate in a dispute. But they are not on the loan servicer’s side, either. The ombudsman enters the conflict from a neutral standpoint. They then evaluate the data and enable both parties to come to a resolution.
An ombudsman can’t overturn decisions, but they can create an argument to present to the lender or collection agency. The ombudsman can help the decision-makers make an informed ruling, which can help give you relief.
A student loan ombudsman can assist with many issues, including:
- Loan balance and payment discrepancies
- Explaining interest or default charges
- Loan consolidation
- Identifying repayment options
- Reviewing laws affecting your loans
An ombudsman can’t process requests for loan forgiveness or repayment plans, though. Your loan servicer or lender is the point of contact for repayment management strategies.
Reaching out to the U.S. Department of Education ombudsman or the CFPB’s Ombudsman should be a last resort. It’s a step you should take only when you have exhausted all other options. Try to work directly with your loan servicer, credit bureau or collection agency on your own first.
The Department of Education’s ombudsman group, for instance, created a resolution checklist you can use to help manage problems on your own. Use the checklist and follow their recommended steps to try and resolve any issues. You should check off all the appropriate steps for your problem to ensure you did all you could before contacting the ombudsman.
Here are two common problems borrowers face and the steps you should take before reaching out to a student loan ombudsman:
1. Incorrect loan balance
If your account balance has the wrong total, contact your loan servicer directly. You can gather bank statements or payment confirmation emails, and submit your proof to them.
When you contact the loan servicer, record the date, time and name of any person you speak with and follow up via email or in writing. Save the originals of any payments, receipts or emails about your issue. If you make payments electronically, download and save copies of the confirmation notifications.
If the loan servicer asks you to submit documentation, send in copies via certified mail so you have a record of when they received it.
2. Inaccurate credit report
If you think your loan servicer sent incorrect information to the credit bureaus and it’s affecting your credit score, you can dispute the report.
If you contact Experian, Equifax or TransUnion, and show documentation of your accurate loan balance and payments, they will correct your credit report. You can check your credit report for errors for free at AnnualCreditReport.com, or use a third-party service like My LendingTree to monitor your credit.
If you’ve tried to resolve the issue on your own but failed, you can contact the federal or private student loan ombudsman online by mail or phone.
If you use an online form or email, you can share your personal information or remain anonymous.
|Education Dept. Ombudsman||CFPB Ombudsman|
|Online||Contact the Feedback Center or use the VA GI Bill Feedback Tool if you’re a veteran||Email [email protected] or submit a complaint form|
|The U.S Department of Education
P.O. Box 1843
Monticello, KY 42633
|Consumer Financial Protection Bureau
Attn: CFPB Ombudsman’s Office
1700 G St. N.W.
Washington, DC 20552
When reaching out to the ombudsman, make sure you have the documentation about your situation. You can use the Department of Education ombudsman’s checklist (above) to outline the essentials.
If your student loan dispute revolves around a lender-specific debt, you should contact their ombudsman (if it has one), at least initially, by phoning its customer service line or visiting its website. The FedLoan Servicing ombudsman, for example, maintains a phone number and email address for requests.
Additionally, if your education debt is state-owned, contact your state’s higher education authority to determine if it offers an ombudsman or advocate service.
After you’ve contacted the Department of Education ombudsman or the CFPB ombudsman, they’ll research your situation and review the documentation you sent. They’ll work with you, your loan servicer, your school and even the collection agency managing your debt, if necessary.
They will help you identify potential solutions and steps forward. For example, they may advise your loan servicer that the loan amount on your account is incorrect. Or they may refer you to another agency for issues outside their scope.
The student loan ombudsman will ensure there is a resolution and will create a plan to avoid future issues from cropping up.
For more information about how to handle student loan disputes, learn more about defense to repayment rules and how they can help you.
Andrew Pentis contributed to this report.
Interested in refinancing student loans?Here are the top 9 lenders of 2022!
|Lender||Variable APR||Eligible Degrees|
|2.49% – 11.72%1||Undergrad & Graduate|
|2.50% – 6.30%2||Undergrad & Graduate|
|4.13% – 7.39%3||Undergrad & Graduate|
|2.49% – 7.99%4||Undergrad & Graduate|
|2.49% – 7.99%5||Undergrad & Graduate|
|3.24% – 8.24%6||Undergrad & Graduate|
|2.48% – 7.98%||Undergrad |
|1.74% – 7.99%7||Undergrad & Graduate|
|3.69% – 9.92%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of September 6, 2022.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $9 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
3 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.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 09/09/2022 student loan refinancing rates range from 4.13% APR – 7.39% Variable APR with AutoPay and 2.99% APR – 9.93% Fixed APR with AutoPay.
4 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
You can choose between fixed and variable rates. Fixed interest rates are 3.99% – 8.74% APR (3.74% – 8.49% APR with Auto Pay discount). Starting variable interest rates are 2.74% APR to 8.24% APR (2.49% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.
5 Important Disclosures for Navient.
6 Important Disclosures for SoFi.
Fixed rates range from 3.99% APR to 8.24% APR with a 0.25% autopay discount. Variable rates from 3.24% APR to 8.24% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.
7 Important Disclosures for Purefy.
Purefy Student Loan Refinancing Rate and Terms Disclosure: Annual Percentage Rates (APR) ranges and examples are based on information provided to Purefy by lenders participating in Purefy’s rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.73% – 7.99% APR, and variable rates ranging from 1.74% – 7.99% APR. The maximum variable rate is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. Rates and terms are subject to change at any time without notice. Terms and conditions apply.
8 Important Disclosures for Citizens.
Education Refinance Loan Rate Disclosure: Variable interest rates range from 3.69%-9.92% (3.69%-9.92% APR). Fixed interest rates range from 4.49%-10.11% (4.49%-10.11% APR).
Undergraduate Rate Disclosure: Variable interest rates range from 6.39%- 9.60% (6.39% – 9.60% APR). Fixed interest rates range from 6.58% – 9.79% (6.58% – 9.79% APR).
Graduate Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).
Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 3.69%- 9.09% (3.69%- 9.09% APR). Fixed interest rates range from 4.49% – 9.28% (4.49% – 9.28% APR).
Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 3.69% – 9.16% (3.69% – 9.16% APR). Fixed interest rates range from 4.49% – 9.35% (4.49% – 9.35% APR).