By Ben Luthi – Updated 30, 2020 47 Comments april
You didnвЂ™t have the option to pick your student loan servicer when you first got your federal student loan. But in the event that you have assigned to FedLoan Servicing, which manages approximately a 3rd of all of the federal education loan financial obligation, you could be in for an especially painful experience.
Within the summer time of 2018, we surveyed a huge selection of Student Loan Planner readers and asked them about their experience with their education loan servicers.
Nearly 1 / 2 of the those who reacted caused FedLoan, and so they offered the servicer on average 2.8 away from 5 movie stars.
From the 176 reactions we received about FedLoan, 53 of those were complaints. Here you will find the top four grievances FedLoan borrowers shared and what can be done if you experience them.
1. Bad customer care
We received 22 complaints concerning the FedLoan customer support group. вЂњUnhelpful,вЂќ вЂњincompetent,вЂќ and вЂњinconsistentвЂќ were a few of the terms that summed within the response that is general.
A client would get in touch with, by way of example, and obtain answers that are various different FedLoan customer service representatives. And it will simply take months to process requests that are simple. One respondent said:
вЂњIвЂ™ve had to call them at least 10-15 times into the previous 3 years to obtain them to repair errors theyвЂ™ve made. IвЂ™ve had to keep these things audit my account twice. And final time the review ended up being likely to simply just take thirty day period. It took over 6 months.вЂќ
Should you have to get in contact with FedloanвЂ™s customer support division, there are some options that are available
Phone: (800) 699-2908, through Friday, 8 a.m. to 9 p.m. (EST monday)
Email: Send an email that is secure your internet Fedloan account.
Fax: (717) 720-1628
Mail: For communication:
Harrisburg, PA 17106-9184
Have the Free Education Loan Calculator
2. Wrong calculation of Public Service Loan Forgiveness re re payments
If youвЂ™re working toward Public solution Loan Forgiveness (PSLF), expect you’ll encounter some hurdles with FedLoan Servicing. Eighteen of this complaints we received had been about how exactly the servicer handles this program.
The absolute most common issue had been that FedLoan does not calculate the number of re payments that count toward this program precisely. You will need an overall total of 120 qualifying re payments to have your loans that are federal, therefore it could be infuriating to get out that youвЂ™re quick because your servicer is not doing its task. One study respondent wrote:
вЂњWe had to refinance rather since they didnвЂ™t provide us with an exact repayment count.вЂќ
Another issue ended up being having less reliable information about PSLF. Visitors whom called FedLoan for more information on the scheduled system had been met with customer support representatives who didnвЂ™t completely understand the way the program works.
FedLoanвЂ™s problems with PSLF have gotten so incredibly bad that the Massachusetts attorney general filed a lawsuit against FedLoan Servicing in 2017. Into the problem, Attorney General Maura Healey accused the servicer of causing general public servants to lose advantages and help through PSLF while the Teacher Education Assistance for College and Higher Education (TEACH) Grant programs.
The attorney general is looking for restitution for affected borrowers, in addition to penalties when it comes to servicer.
3. Mishandling of income-driven payment plans
We received seven complaints concerning the FedLoan control of income-driven repayment plan requests. These payment plans makes it easy for borrowers whom canвЂ™t afford their payments that are monthly find some relief.
In some instances, customer care representatives just offered incorrect information on whatвЂ™s available and just how the payment plans work. In others, they botched plan demands, forcing borrowers in order to make larger payments which they couldnвЂ™t pay for.
In a single such situation, one study respondent reported that FedLoan, вЂњcould only repair it after almost a year, ensuing in me spending in the standard repayment plan up to $800 four weeks once I must have paid $105.вЂќ
4. Incorrect payment processing
Six visitors had objections as to just how FedLoan handles its payment processing. More often than not, the servicer didnвЂ™t apply repayments towards the outstanding loans accurately.
In one single situation, the study respondent stated they received a page saying FedLoan had a need to make an вЂњadjustmentвЂќ to their account. The servicer finished up enhancing the major balance by $2,000, and when the debtor reached away to FedLoan, they got no reaction.
A respondent said they kept seeing automatic payments coming out of their checking account even after they had paid off the loan in another example
вЂњIt took a bit of the glory far from paying down certainly one of my loans, also it took plenty of strive to verify I happened to be properly refunded.вЂќ
You skill if FedLoan can be your servicer
WeвЂ™re perhaps not the sole people that have noted customer that is bad with FedLoan Servicing. In 2019, the buyer Financial Protection Bureau (CFPB) received 1,829 complaints concerning the servicer.
You have to stay with them although you canвЂ™t choose your federal student loan servicer, that doesnвЂ™t mean. At scholar Loan Planner, we are able to allow you to determine what related to your loans, and therefore plan can include consolidating your loans by having a brand new servicer or refinancing these with an exclusive lender.
Anything you elect to do, it is crucial to understand if youвЂ™re fed up with a bad servicer that you have options. Be sure to file any complaints you have got aided by the CFPB, to see techniques to find another business to do business with that may provide an improved experience that is overall.
Do any complaints are had by you regarding the servicer? Have actually you seriously considered changing?
Refinance student education loans, get a plus in 2020
perhaps Not certain what direction to go along with your figuratively speaking?
Simply Take our 11 concern quiz to obtain an individualized suggestion of whether you ought to pursue PSLF, IDR forgiveness, or refinancing (such as the one loan provider we think could supply you with the most useful price).
About Ben Luthi
Ben Luthi is just a cash and travel journalist and a factor to scholar Loan Planner. He’s a degree in finance from Brigham younger University, and it has written for many finance web sites and publications, including U.S. Information, Experian, NerdWallet, and more.