January 5, 2024

CFPB: Report Identifies Challenges Faced by Borrowers in Resumption of Student Loan Payments

CFPB oversight identifies long hold times, inaccurate billing statements, and processing delays

The Consumer Financial Protection Bureau (CFPB) published an issue spotlight today on the CFPB’s oversight of student loan servicing practices in the early months of the resumption of federal student loan repayments after over three years of a payment pause due to the COVID-19 emergency. Borrowers are encountering long hold times when trying to reach their student loan servicer, experiencing significant delays in application processing times for income-driven repayment plans, and receiving inaccurate billing statements and disclosures.

“The resumption of student loan payments means that borrowers are making billions of dollars of payments each month,” said CFPB Director Rohit Chopra. “If student loan companies are cutting corners or sidestepping the law, this can pose serious risks to individuals and the economy.”

The CFPB has been closely monitoring student borrowers’ experiences during the return to repayment, using consumer complaints to identify emerging problems and using its supervisory authority to examine loan servicer conduct and performance. The issue spotlight highlights a number of key concerns including:

The CFPB has previously published research using the CFPB Consumer Credit Panel to forecast how the return to repayment would affect borrowers’ financial situations and highlighted complaints from borrowers about the return to repayment .

Read the report, Issue Spotlight: Federal Student Loan Return to Repayment.

Statement of Director Chopra on Student Loan Report.

The CFPB has resources for student loan borrowers needing more information. Borrowers can also visit the Department of Education’s Federal Student Aid website for more information on restarting student loan payments.

Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to whistleblower@cfpb.gov.

This post was originally published here.