{"id":2323,"date":"2013-01-08T09:05:19","date_gmt":"2013-01-08T14:05:19","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=2323"},"modified":"2018-12-05T01:26:16","modified_gmt":"2018-12-05T01:26:16","slug":"the-cfpb-student-loan-ombudsmans-report-describes-private-student-loan-servicers-worst-practices","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/the-cfpb-student-loan-ombudsmans-report-describes-private-student-loan-servicers-worst-practices\/","title":{"rendered":"The CFPB Student Loan Ombudsman’s Report Describes Private Student Loan Servicers’ Worst Practices"},"content":{"rendered":"

Although most recent news about student loans has revolved around the changes to the Income-Based Repayment plan and the process for obtaining a hardship discharge for federal student loans, one item that may not have gotten as much press as it deserved was the Consume Financial Protection Bureau’s (CFPB’s) ombudsman’s report on private student loan servicers. Private student loans, i.e. those that are not direct or guaranteed by the federal government have not been dischargeable in bankruptcy since the bankruptcy code was changed in 2005, so the ombudsman’s report provides some insight into how debtors believe their loan servicers are (mis)treating them. You can read the entire report here<\/a> (PDF).<\/p>\n

Things aren’t good in the world of private student loan servicing. In the six-month period starting in March 2012, the CFPB received 3,000 complaints from debtors. The report admits that they are not a representative sample of the 850,000 private student loans Americans owe money on.<\/p>\n

Nevertheless, the ombudsman’s report breaks them up according to the issues debtors had with their servicers, starting with sixty-five percent of the complaints by debtors who were having difficulties repaying their loans. Here’s how the CFPB divided them:<\/p>\n