The Consumer Financial Protection Bureau announced on Monday that it had opened a student loan complaint system for issues regarding student loans. The system was put in place for students to voice their issues with lenders.
The bureau promises to work with a student or former student and lender to resolve the issue.
A representative from the bureau writes:
For several years, federal student loan borrowers have had the Department of Education’s federal student aid ombudsman to help bring their concerns to financial institutions. But for millions of students and their families, federal student loans don’t cover the full cost of college, and they need private student loans to make ends meet.
However, private student loans – which don’t always carry the same consumer protections as federal student loans – have been overseen by a patchwork of government agencies. In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress established an ombudsman for private student loans within the Consumer Financial Protection Bureau to assist borrowers with private student loan complaints. This means a single federal agency is now responsible for watching out for all students and families who choose to borrow private student loans.
Complaints can be filed at the Web site or by calling (855) 411-CFPB toll-free.
Do readers of The Choice think this is an effective way of dealing with student loan issues? Do you have complaints about a student loan? Share your thoughts in the comment box below.