The return of federal student loan bills may feel like a bad dream. And if poor guidance from your servicer, an incorrect balance or other account errors keep you up at night, consider filing a complaint.
Borrowers filed about 101,500 student loan complaints with the Federal Student Aid office in 2022 -- more than double from 2021 -- and that number is poised to increase this year as repayment starts.
A student loan complaint could resolve your issue and help other borrowers in similar situations. Here are expert tips on how to make a complaint that gets results.
Student loan complaints help flag errors in the system, such as discrepancies with loan payments or balances, incorrect advice from your servicer, or a wrongfully denied student loan discharge or consolidation application.
Complaints generally don't help with affordability issues. Consider an income-driven repayment plan or the 12-month student loan on-ramp if you're struggling to pay. And if you have concerns about student loan policies, contact your Congress members.
Call your federal student loan servicer before making a formal complaint, said Betsy Mayotte, president and founder of The Institute of Student Loan Advisors. "Ninety-nine-point-nine percent of the time, if you call the servicer and point it out, it will get fixed. But of course, that's not 100% of the time."
Expect long call wait times -- and don't give up on your servicer if the resolution isn't quick.
"Servicers are certainly making mistakes at this time, so if something seems wrong, ask your servicer first and try to get it escalated to a supervisor," said Abby Shafroth, director of the National Consumer Law Center's student loan borrower assistance project.
There are three main avenues for your student loan complaint: the Federal Student Aid office, the Consumer Financial Protection Bureau (CFPB) and state ombudsman offices. These organizations often collaborate and share information, so you don't need to submit multiple complaints.
Escalate to the FSA Ombudsman Group as a last resort. Do this in the online feedback center or call the FSA.
Keep your complaint brief and factual; focus on what happened and the desired resolution.
"My No. 1 tip for someone to file an effective complaint is to keep emotions out of it," Mayotte said. "Yes, you're probably angry and frustrated and anxious, and I'm not discounting those things, but they don't make an effective complaint."
Including details -- such as dates of calls and instructions you received -- can expedite your resolution, Shafroth advised. Attach copies of relevant documents, such as an incorrect bill or a loan discharge application you submitted.
A resolution or response to your complaint could get caught in a traffic jam -- more than 28 million federal student loan borrowers will be expected to make a payment in October, the White House reported in August, and most are gearing up for their first payment in more than three years. A delay doesn't mean the system isn't working.
"Sometimes these complaints do feel like black boxes," Yu said. "It is our experience that regulators are taking these complaints very seriously, but borrowers may not get a lot of feedback."
Beyond solving your issue, a complaint may trigger an investigation that could help thousands of borrowers in similar positions, Yu added.
If neither your servicer nor a complaint resolves your problem, consider contacting your members of Congress.
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This article was provided to The Associated Press by the personal finance website NerdWallet. Eliza Haverstock is a writer at NerdWallet. Email: ehaverstock@nerdwallet.com. Twitter: @ElizaHaverstock.
RELATED LINKS:
NerdWallet: Federal Student Loan Servicers: Who They Are And What They Can Do https://bit.ly/nerdwallet-who-is-my-loan-servicer
Federal Student Aid: Feedback Center https://studentaid.gov/feedback-center/
Consumer Financial Protection Bureau: Submit a Complaint https://www.consumerfinance.gov/complaint/
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