CFPB finds consumers complain of needless hurdles in applying for lower student loan payments

The Consumer Financial Protection Bureau Student Loan Ombudsman released a report last week on consumers complaints of servicing problems that make it difficult to get lower student loan payments tied to their income. Student loan borrowers seeking to take advantage of income-driven repayment plans with their federal student loans complain to the CFPB about prolonged processing delays and wrongful rejections by their student loan servicers. These delays and rejections can result in increased interest charges and lost eligibility for certain federal benefits and protections. In response, the CFPB has published a prototype “Fix It Form” that servicers can use to improve the level of service they provide. 

The CFPB Student Loan Ombudsman's midyear report is here.

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