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    How To Complain To Your Student Loan Provider

    If you’re not satisfied with the student loan, you have the right to raise a complaint. However, most complaints don’t help get a proper solution. There are multiple ways to get your voice heard and following the correct approach will ensure that you obtain quicker results.

    Keep reading to learn about the different ways to complain to your student loan provider.

    Contact Your Lender

    Before you start filing a complaint, it is important to gather all necessary and relevant information pertaining to your student loan. In fact, you’ll get quicker responses if you start by contacting the designated lender first. 

    • Start by sending out an email to the lender’s customer service team so they can route it to the concerned person. Alternatively, you can try reaching out via phone. However, it is best to reach out using email as it ensures that you have documented proof. 
    • Document everything in the email. This may include your loan account number, your name, and other relevant details. Keep the email clear and concise by highlighting your problems.
    • If everything is clear, your concern will be routed to a dedicated ombudsman who will help you resolve the problem. However, keep in mind that not every lender has an ombudsman. In this case, ask the person who is handling your complaint to connect you to a supervisor. 
    • In most cases, reaching out to the highest level of the lender’s customer service, be it an ombudsman, consumer advocate or someone from the claims department helps with obtaining quicker solutions as low-level customer service representatives might not have the required level of access to assist you. 

    Escalate To The Government

    If you don’t receive a satisfactory solution from the lender, you have the option to escalate your concern to higher authorities within the government. 

    • You can file a formal complaint with the United States Department of Education if you have a federal student loan. If you have a private loan, you can escalate your concern to the Consumer Financial Protection Bureau (CFPB).
    • For federal student loan borrowers, there are two ways of raising an escalation:
      • Filing a complaint with the FSA Ombudsman.
      • Submitting a complaint using the Federal Student Aid Feedback System
    • For borrowers with private student loans, use the online complaint system provided by the CFPB. Alternatively, you can call 1-855-411-2372 to register your complaint. Once received, the CFPB will forward your concern to the servicer or the lender and ask for a response. 
    • Once you submit a complaint using these online feedback systems, you will receive a response via email or a letter within two weeks. The average resolution time for escalated complaints is 60 days. If your issues still don’t get resolved within the stipulated time, you have the option to escalate it further to the Federal Student Aid Ombudsman Group
    • If you have complaints about the loan servicer of your federal student loan, you can also file a complaint with the CFPB. If it is related to a collection agency, you can raise a formal complaint with the Department of Education’s Default Resolution Group by calling 1-800-621-3115, which will further direct you to the Special Assistance Unit for quick resolution of your problem.

    File A Complaint With The FTC

    If you have concerns related to fraud, identity theft, or deceptive advertising practices related to your student loans, you can raise a complaint with the Federal Trade Commission (FTC). In these cases, the CFPB doesn’t help much. Instead, it helps you understand the pattern of your complaint. 

    • To raise a complaint with the FTC, visit their official website. Alternatively, you may call 1-877-FTC-HELP or 1-877-382-4357 to register your grievance. 
    • Before you start filling in the information, make sure to read the guide to borrower rights published by the Fair Debt Collection Practices Act (FDCPA).
    • Choose the category that fits your scenario and then choose a relevant sub category. There are multiple fraud-related categories such as imposter scams and rip-offs, credit and debt, and more.
    • Once you select the category, you will then need to select the correct sub-category. If you can’t find the right match, click on “Something Else”.
    • Next, fill in the required information as mentioned on the website to submit your report. The more information you can provide about the issue, the easier it is to receive a resolution. You may be required to provide multiple details such as your contact info (name, email, phone number, and address), details of the type of product or service, details about the service provider, and details of transitions, if any. 
    • Once submitted, download a copy of the report for future reference.

    Bottom Line

    As a consumer and tax-paying citizen, you have the right to raise complaints and escalate them to higher authorities if you find the resolutions to be unsatisfactory. However, make sure not to escalate your complaint right away. 

    Follow the correct approach and provide as many details as possible to ensure quicker and more  satisfactory resolutions.