In February, the newly formed federal Consumer Financial Protection Bureau (CFPB) put out a call to student loan borrowers: If you have a beef regarding a private student loan, file a complaint on the CFPB website.
What Is a Private Student Loan?
If a bank or other financial institution loaned you money to attend school, and that loan is not backed by the federal government (that is, it’s not federally guaranteed), you have a private student loan.
The CFPB Now Oversees Private Student Loans
Prior to the formation of the CFPB, there was no one agency that oversaw and regulated the private student loan industry. (Public student loans, on the other hand, are regulated by the Department of Education.) Since July 2011, the CFPB has taken over that role. As part of its oversight, the CFPB has created an ombudsman program. The ombudsman will review complaints about private student loans and assist those borrowers.
Types of Complaints
The CFPB ombudsman is urging students and former students to file complaints of any nature. Some examples of complaints it anticipates receiving include:
- trouble making payments
- confusing advertising or marketing terms
- billing disputes
- deferment and forbearance issues, and
- debt collection and credit reporting problems.
You can find the online complaint form, here.
Or, if you don’t want to file a formal complaint, but just want to tell your story, you can do that here.
What Will the CFPB Do?
The CFPB states that it will help all student loan borrowers who are having trouble:
- getting a private student loan
- repaying a private student loan
- managing a student loan that has gone into default, or
- dealing with a student loan that has been referred to a debt collector.
Once the CFPB receives your compliant, it will give you a case number so you can track progress of the complaint. It will forward your complaint to the financial institution involved and then keep track of progress. The CFPB says it expects to have cases come to resolution within 60 days. It’s unclear from the information on the CFPB’s website what role the ombudsman will take in resolving those issues.
The CFBP will use the information it gathers from borrowers’ complaints and stories to report to Congress on the private student loan industry.
Another Handy Tool
The CFPB also has a handy online tool, the Student Debt Repayment Assistant, to help you figure out your student loan repayment options. You can also find information about repayment in Nolo’s article Student Loan Repayment Options.
How to Contact the CFPB