CFPB Highlights Complaints Against Student Loan Servicers

The CFPB reviewed federal student loan servicing practices since required repayments have resumed.

In an "Issue Spotlight," the CFPB said that it was "using consumer complaints to identify emerging problems and using its supervisory authority to examine loan servicer conduct and performance." The CFPB found that "borrowers are encountering long hold times when trying to reach their student loan servicer, experiencing significant delays in application processing times for income driven repayment plans and receiving inaccurate billing statements and disclosures." As to inaccurate statements for consumers, the CFPB reported complaints of premature due dates listed before the end of the payment pause, inflated monthly payment amounts due to the servicer using outdated poverty guidelines and the use of incorrect income when calculating a borrower's new income-driven repayment plan payment.

In a separate statement, CFPB Director Rohit Chopra said that loan servicer "conduct has a significant impact on household finances. Outstanding student loan debt exceeds outstanding auto loan debt and credit card debt. If student loan borrowers are unable to successfully enroll in payment plans or obtain accurate information about their accounts, this can have a domino effect on the rest of their financial lives."