Student Loan Servicer Complaints and the CFPB

By Joseph Reinke, CFA, Founder of FitBUX

Many of our Members have asked us where they can go to file complaints about the Federal student loan servicers, so here is a quick overview and our take on a recent change:

Currently, you can turn to the Consumer Financial Protection Bureau’s (CFPB) student loan department to file your complaint(s) (here).

For context, and according to the CFPB’s own data, one of the primary complaints about student loan servicers is that they do not apply prepayments correctly.

We’ve created a quick video, which shows you what to check to make sure yours are applied correctly and what happens if you don’t make them correctly (hint: it’s costing you money…)

Recent News from the CFPB

The CSFB recently announced a change/re-org that will merge the division handling complaints from consumers concerning their student loan servicers with the division focused on student loan education for consumers.

What does it mean? Well, it depends whom you ask:

-- The CFPB positioned the move highlighting that it was NOT shutting down this division and that this re-alignment will benefit consumers by 1) more efficiently educating consumers about the entire process before issues arise with their servicers and 2) providing a more integrated and more efficient approach when issues do arise.

-- Most of the media coverage, however, see the move as a negative move that will make it more difficult for consumers to resolve student loan servicer-related issues. For instance, there was a recent article by Consumer Reports with the title “What the Shutdown of the CFPB’s Student Loan Watchdog Means for Borrowers.”

Only time will tell what that move will actually mean for consumers. Regardless, we’re here to help!

How FitBUX can help

We’ve created FitBUX’s MyFit Tracking Solution to let you track your repayments, flag errors and correct them in a timely fashion ensure that your repayment strategy remains on track, whether you elected to pay down your loans or went on an income-driven repayment plan.

We will also send you a monthly statement for easy filing and last but not least, our expert coaches are available if you have any questions.

Last but not least, here is a real-life example of what an existing FitBUX member had to go through with his student loan servicer. We were glad we could help!

 

 

Young professionals manage over $400 million in student loans with FitBUX? Become a member today, it's free.

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