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Politics & Government

Consumer Financial Protection Bureau asks about troubles with student loan servicers

By Renee Schoof - McClatchy Washington Bureau

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May 13, 2015 01:15 PM

The federal Consumer Financial Protection Bureau on Wednesday announced that it wants to hear from people who have complaints about the companies that service student loans.

“Student debt stress can make borrowers feel like they are walking a tightrope where any false move in paying back a loan can cause them to fall,” said CFPB director Richard Cordray said in a press release. “Today’s inquiry seeks information on the pain points in student loan servicing that make repayment a more difficult and stressful process.”

Loan servicers manage borrowers’ accounts and process monthly payments. When borrowers have trouble making their payments, they must contact the student loan servicers to ask about alternative repayment plans.

The Consumer Financial Protection Bureau says it already has heard a lot of complaints through its website. Examples include lost records, slow response times to errors and getting the runaround from customer service. Instructions are here for how to file comments by July 13.

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