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Every year, thousands of borrowers file complaints about their student loan officer with the Consumer Financial Protection Bureau (CFPB). According to the CFPB, “dealing with your loan servicer or lender” was one of the most cited reasons for filing a complaint in 2021.
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Among borrowers who have filed a complaint against their loan officer or lender, receiving poor information about their loan, having problems with how payments are processed, and problems with customer service are the top complaints.
Consolidate your federal student loan
If you have a federal student loan and want to switch service providers, consolidation is an option. When you consolidate your federal student loans, you get a new direct consolidation loan to pay off existing federal loans. Fox Business reports that consolidating can also result in lower monthly payments and flexible terms.
You can complete a consolidation loan application for your federal student loans at studentaid.gov.
Change student loan service on a private loan
If you have a student loan from a private lender, Fox Business noted that your lender is usually also your loan manager. To switch service providers on a private student loan, you will need to switch lenders.
By refinancing your private student loan, you can take out a new private loan from another provider to pay off your existing loan. However, to qualify for student loan refinance, you will need good or excellent credit.
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Refinancing also allows borrowers to choose new repayment terms and possibly lower their interest rates. This allows borrowers to pay less each month, save money on interest, or both.
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