FedLoan Servicing Complaints

10/07/2021

Folks! If you are on or have been denied PSLF - CHECK THIS WAIVER ASAP

05/25/2021

Fedloan had to settle in Mass! Keep up the pressure!

Pennsylvania Higher Education Assistance Agency settles a lawsuit alleging it prevented hundreds of thousands from having loans forgiven or reduced.

04/15/2019

A continuing s**tshow for PSLF borrowers based on Fedloan’s inability to run this program effectively. It should be a question as to whether the company has verged into actionable gross negligence.

Many public servants in the federal loan forgiveness program spot errors in the count of their qualifying payments. Their servicer tells them reviews will take a while.

02/26/2019

https://www.washingtonpost.com/education/2019/02/26/this-court-ruling-could-have-big-implications-public-service-loan-forgiveness/

A federal judge chastised the U.S. Education Department's handling of the loan forgiveness program, in a ruling that could help applicants who've been denied.

10/19/2018

The baloney continues with the PSLF program.

Ninety-nine percent of applications for Public Service Loan Forgiveness have been denied. A former student loan watchdog saw it coming.

04/20/2018

Federal Student Loan issues? Write to the Federal Ombudsman.

How do I contact the Ombudsman Group?
If you’ve completed the preparation steps above, and you have done everything you can to resolve your dispute, contact the Ombudsman Group through one of these methods:
Postal Mail
U.S. Department of Education
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
Phone
1-877-557-2575
Fax
606-396-4821
Or complete the secure assistance request form through the Federal Student Aid (FSA) Feedback System. If you previously filed a complaint through the FSA Feedback System, you can log in, add information to your existing case, and request to file a dispute.

If you’ve completed the steps to resolve your dispute and you believe the answer you received is wrong or incomplete, you may need to contact the [no-lexicon]Federal Student Aid[/no-lexicon] (FSA) Ombudsman Group of the U.S. Department of Education (ED). The Ombudsman Group is a neutral, informal,...

04/20/2018

Public Service Loan Forgiveness (PSLF) borrowers, it has come to light that PHEAA (DBA FedLoan) has been allegedly mismanaging PSLF accounts.

The complexity of the public service loan forgiveness program has tripped up many teachers like Jed Shafer. An October Your Money column led to changes.

03/02/2016

NPR posted some good strategies on paying off student loans and how to avoid some scams.

https://www.facebook.com/NPR/posts/10154200963481756

More people have more student loan debt than ever; last year, the average for a college grad was more than $35,000. Here are some ways to set priorities for attacking that debt.

08/07/2015

Folks, looks like the PSLF (public service loan forgiveness program) is in trouble. Even if you've been working towards the ten year limit, it doesn't look as if you'll be grandfathered in! Save

Record a short video on your phone, tablet or we**am telling your Senators why loan forgiveness is important to you. Be sure to say your name and city/state. More info...

12/11/2013

Student loans are vitally important to today's student. But after you're done with school, the average debt is $30k. For graduate school, that debt can reach $100k+. That's about a $1000 per month.

For many, that payment and debt can be near-crippling. Worse yet, student debt CANNOT be discharged in bankruptcy, making your debt payment incredibly important to manage and control.

You have options. FedLoan must honor those options, and if they process (or don't process requests) incorrectly, they should be held accountable. FedLoan has terrible customer communication practices and it is up to YOU to keep on top of their failures. In a perfect world, they would contact you with issues, but remember: They are in this for their own profits, not for you! But, because they are a federal contractor, they must at least respond to federal inquiries.

If you have any problems, be prepared to pick up the phone and the pen.

Tips:
- (1) Start small. Call FedLoan customer service center (800-699-2908). ALWAYS record the date, time, who you're talking to, what resolution you want, and what they say to you. Remember, most student loan call center workers are high school or community college graduates making $8/hour. They aren't invested in you and there are few who are interested in their jobs. They, like all other call centers, are invested in making you go away within three minutes. Don't take "No," or "We'll get around to it," for an answer (if you know that you're right).

- (2) If that doesn't work, escalate. The Call Center always has a supervisor available. Ask for a supervisor, explain the problem as clearly and succinctly as possible, and then ask for a resolution (e.g., please process this forbearance today). Again, record all this down.

- (3) Asking for help from Consumer Bureaus:
-- Better Business Bureau.
--- Here is the FedLoan Servicing complaint page: http://www.bbb.org/washington-dc-eastern-pa/business-reviews/government-state/fedloan-servicing-in-harrisburg-pa-202729473.
--- You can also file a complaint with them electronically here: https://www.bbb.org/consumer-complaints/file-a-complaint/get-started

-- Federal Consumer Financial Protection Bureau:
--- This new government bureau reviews predatory loans, including student loans.
--- File a complaint here: https://help.consumerfinance.gov/app/studentloan/ask

- (4) Your local representative
-- When I had problems with FedLoan and could not get relief from them, I contacted my state Senator's/Representative's offices. While they take more time (read: 1-2 months) than trying to solve the issue directly with FedLoan, you will eventually get responses, and those responses will usually be in writing. This option is good for (a) things that are not time-sensitive, or (b) after-action complaining ("FedLoan fails to process basic forms in a timely manner," etc.).

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Good luck!
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"Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." - Hon. Louis D. Brandeis (1913).