Written By Kevin Payne
Updated on September 30, 2022
You were approved for federal student loans and used them to pay for college expenses. Once you graduate or leave school, you start to pay back your loans. It should be a simple process, right? Unfortunately, that's not always the case for student loan borrowers.
When you take out federal loans, the U.S. Department of Education assigns you a loan servicer to manage your loan repayment. You don't get to choose your loan servicer. Unfortunately, loan servicers aren’t known for their stellar customer service. If you run into unresolvable issues with your servicer, you can file a student loan complaint about your student loans with the Consumer Financial Protection Bureau (CFPB).
What is the CFPB?
The Consumer Financial Protection Bureau (CFPB) is a U.S. government agency that protects consumers from unfair or deceptive practices by financial institutions, like banks and lenders.
Congress created the CFPB in 2011 as a central independent agency aimed at protecting the interests of American consumers. Among its many roles, the CFPB acts as a liaison between consumers and financial companies. Each week, the CFPB sends over 10,000 consumer complaints to companies for response.
How to file a CFPB student loan complaint
If you're having issues with your student loan servicer, the CFPB allows you to submit a complaint, which it passes on to the servicer for a response. Below are the steps to file a complaint with the CFPB.
1. Try to resolve the issue with your loan servicer
The CFPB expects borrowers to resolve problems directly with loan servicers before filing a complaint. Take matters up directly with your servicer when you encounter an issue that needs to be addressed. If there's no resolution, then turn to the CFPB for assistance.
2. Gather supporting documents
The CFPB asks you to provide documentation to support your complaint. Gather any supporting documents before starting the online complaint process, including receipts, billing statements, letters and other correspondence, and contracts.
3. Complete the online form
Visit consumerfinance.gov/complaint to begin the complaint process. You'll need to create an online account if you don't have one already.
Navigate through the online form. When given the option to choose your type of complaint, select “Student loan,” then choose “Federal student loan” as the loan type.
After that, it's time to select the type of problem you're having. Select “Dealing with your lender or servicer.” Then, choose from the listed problems, which include:
- Trouble with how payments are being handled.
- Don't agree with the fees charges.
- Received bad information about your loan (incorrect, incomplete or inaccurate information).
- Need information about your loan balance or loan terms.
- Keep getting calls about your loan.
- Problem with customer service.
At this time, the CFPB will ask if you've attempted to fix the problem with your servicer.
4. Describe what happened
At this point, it's time to describe your issue with your loan servicer. Include as much detail as possible, including dates, amounts and actions taken by you or the servicer during your correspondence.
You don't need to include personal information at this time, like your name, address or Social Security number. You will provide the loan servicer's name later and have an opportunity to provide additional information (loan number, account number or Social Security number) to help your servicer locate your account in its system.
The CFPB also asks you to provide a fair resolution for the problem. Attach any supporting documents to your complaint during this step.
5. Review and submit your complaint
Review your complaint, making sure that there are no errors or omissions. You can't make changes or attach more documents once it's submitted. Once you've reviewed it and verified everything is correct, submit your complaint.
6. Look for a response
Once you submit a complaint, the CFPB sends the complaint to your loan servicer. Generally, you should see a response from your servicer within 15 days. THE CFPB sends email updates throughout the process, but you can also check the status of your complaint by logging into your account.
There's no guarantee of a resolution when you file a complaint with the CFPB. If you’re not satisfied with the results, you can submit a new complaint or seek other options.
Alternative: FSA Ombudsman Group
The CFPB isn't your only option if you run into issues with your loan servicer. You can also submit a complaint with the Department of Education through the Federal Student Aid website.
If you're not satisfied with outcome of your CFPB complaint, your next step is to contact the Federal Student Aid (FSA) Ombudsman Group. The Ombudsman group is a neutral party that works to help resolve borrower issues with federal student aid.
You can contact the Ombudsman Group three ways:
- Phone: (877) 557-2575
- Fax: (606) 396-4821
- Mail: U.S. Department of Education
FSA Ombudsman Group
P.O. Box 1854
Monticello, KY 42633
If you submitted a complaint online with the FSA, you can log back in and request to escalate your complaint to the Ombudsman Group.
Filing a complaint can help others
The best case scenario for borrowers is to resolve their student loan problem so they can move forward. Submitting a complaint not only helps you, but it can also help other borrowers.
The CFPB uses consumer complaints in several ways. As mentioned, the CFPB forwards your complaint to your loan servicer. You can also have your loan complaint published on the CFPB site if you choose. Doing so makes your complaint public and may provide extra incentive for the servicer to resolve the issue swiftly.
The CFPB also shares complaints with state, federal and law enforcement agencies and sends complaint reports to Congress. Consumer complaints can also guide policy enforcement and help establish new policies.
