Not all heroes wear capes; but if they did, the CFPB would be taking theirs off. The U.S. Education Department just dropped The Consumer Financial Protection Bureau (aka the CFPB) from protecting student loan borrowers from alleged, questionable business practices by their loan servicers and for-profit colleges. So what does this mean? Well… if you have student loans, it could mean leaving you hanging high and dry when it comes to additional protection from debt collectors.
Here’s the basics of what the CFPB is and what it does (…or at least, used to do) in regards to student loan protection. The CFPB is a federal agency that specializes in enforcing consumer financial laws. They monitor and respond to consumer complaints about loans, mortgages or other financial entities and products. Think of them as your student loan police; patrolling the streets (or typically websites since it is 2017 after all) for suspicious activity or crimes against borrowers. Most recently, the CFPB filed a suit against Navient (one of the largest student loan servicers in the country) after receiving thousands of complaints regaurding problems, which borrowers in some cases say caused them to default! Yikes. Navient denies these allegations but only time will tell when it comes to receiving an actual verdict in the case. Although this lift doesn’t end the CFPB as a government agency, it does remove them from their student loan post – which means borrowers (like you) are on their own.
So what can you do protect yourself?
1.) Be accurate & keep ironclad records.
Whether you’re filing for your first consolidation, switching repayment plans or simply renewing your old one, make sure all of your paperwork is flawless. Cross every “T,” dot every “I” and leave no room for a discrepancy with solid accuracy on all of your forms. Keep a record of every bill, communication and form both sent and received to catch and correct mistakes as soon as they occur.
2.) Spot a problem? Log it.
If you do notice an issue, try to correct it through your servicer first. If you don’t have any luck handling it directly, or especially if you feel taken advantage of, you can still file an official complaint through The Ombudsman Group. Ombudsman is a neutral and confidential resource that helps borrowers resolve problems in regards to their federal student loans. Check out their site here: Ombudsman.
3.) Prefer a guarantee? Have a pro monitor your account for you.
Unlike debt collectors and most servicers, private companies like Docupop have the BORROWER’S best interest in mind; not the other way around. If you want to make sure that you are in the absolute best, and most up-to-date repayment program to fit your unique needs (along with a 100% accuracy guarantee that your paperwork is filed correctly) having an expert with a second set of eyes and superior knowledge of the options available is always your best bet. Third party protectors like Docupop will also handle all of your account monitoring and corrections if/when needed to give you extra peace-of-mind. Check us out at www.DocuPop.com or give us call at (866) 884-5021 to learn more about your options.
Whether you choose to have Docupop handle it—or, if you’re using the ‘ol do-it-yourself route, the student loan patrols have officially clocked out so do your own diligence, double/triple check and don’t get caught in a missed mistake. It could cost you.
Disclaimer: Docupop is a private company, not affiliated with the Department of Education. The DOE offers several programs that may offer lower monthly loan payments for borrowers who meet the qualifications based on income and family size. Lower monthly payments may lead to longer student loan maturity periods, increasing the total amount of interest over the life of the loan. The DOE also offers programs that may forgive some or all of the borrower’s loan balance. The Public Service Loan Forgiveness program (PSLF) is based on the number of qualified payments made under the program while working full-time for a qualifying employer. Other programs require a specific number of qualifying payments and then forgive the remaining balance once those payments are completed, without any public service obligation. Depending on the type of forgiveness, any amounts forgiven may be treated as taxable income for income tax purposes, please consult your tax professional. More information can be found on the DOE website: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation
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