Less
than a week ago, I was on the phone with my loan servicer. I called because one
of my loans was under Standard repayment instead of IBR. I grit my teeth as I
listened navigated through the automated menu. Per usual, the elevator music
was less than stellar. Finally, a representative picked up my call. The
conversation went something like this:
Rep: Hi, how can I help you today
Nadja?
Me: I’d like to have loan number
XXYY placed on Income-Based Repayment please, just like my other loans. I
filled out the yearly renewal through studentloans.gov over a month ago.
Rep: Let me take a look at your
file.
Me: Thank you.
Rep: Well, it appears that loan XXYY
is a GradPlus loan. Those aren’t eligible for IBR, so that’s why it’s on
Standard.
Me: Sir, I beg your pardon, but
GradPlus loans made to students are eligible for IBR. (Note: I was looking at
studentloans.gov’s repayment plan section as I spoke to him)
Rep: I’m sorry Ma’am, but they are
not.
Me: Sir, I’m looking at the official
government website right now. The detailed explanation of IBR’s eligible loans
includes GradPlus. Could I please speak to a supervisor?
Rep: Well, let me see if I can help
you first. Can I put you on hold?
Me: Sure. (By this point, I was
frustrated. About three minutes later the rep came back onto the phone.
Rep: I’m sorry about that. It
appears that GradPlus loans are eligible for IBR. Well, you learn something new
everyday. I’ll take care of it now. Your IBR repayment schedule for that loan
should be processed in about 10 business days.
Me: Thank you. I appreciate it. Have
a good day.
Rep: You too, Ma’am.
I’m
sure you’ve had a similarly frustrating conversation with your loan servicer,
or servicers. Thankfully, I have only one. Your loan servicer holds a great
deal of power over your loan: they process your repayment paperwork, payments,
and track eligibility for various repayment programs and loan forgiveness
plans.
The representatives often get things
wrong. Many are great, but many don’t know all the ins and outs of federal
student loans. It’s quite scary. Servicers may not even take responsibility for
their mistakes. See:
So,
what can you do?
*Be
informed about your loans and your options.
*Keep
notes of all phone conversations with reps. Make note of the rep’s name. Take
screen caps of your “paperless inbox” if your servicer has one.
*Download
statements as PDFs and keep them in a secure place. Some servicers will delete
your financial information if your loan gets transferred to another.
*Ask
to speak to a supervisor if the representative seems to be giving you incorrect
information.
*If
a supervisor doesn’t help, contact the Dept. of Ed. Ombudsman here:
*Submit
a complaint to the CFPB here:
*Check
back with your loan servicer and make sure they do what they said they would.
Be a squeaky, annoying wheel.
Do
you have any frustrating stories to share? Feel free to comment below!
Nadia, thanks for this, thanks for the links. My student loans are from about 6 different lenders (some dating back to 1998!). My loans keep changing companies, so it is very difficult to track. I'm grateful for this blog and am impressed with your research and willingness to share.
ReplyDeleteYou are very welcome, Jen :) I'm sorry that your servicers have been switched so often...it is insane. Thankfully, https://www.nslds.ed.gov should keep your loans/servicers straight, even if they take up to 30 days to update. Still, that site can be a headache to navigate. Just keep in mind that you are strong enough to beat them :)
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