Read up the below article and know the issues and challenges of loan lenders in 2018. carefully read and note the downside of servicing companies.
Something must have happened which triggered the complaints in 2018 over student loans. Let’s find out what went on. Within the first seven months in 2018, more than 917, 000 federal and private loans were originated according to Consumer Financial Protection Bureau (CFPB) and this added $16.6 billion to the already existing debt of about $1.48 trillion. Even in the midst of this, nearly 10,000 student-loan-related complaints were received between Jan. 1 and Dec. 19 of the previous year.
Report from bureau – bureau’s student loan ombudsman
Firstly, through the office of the ombudsman, complaints about student loans have been revealed. The ombudsman is responsible for the student loan compliance and directly reports to the CFPB.
Currently, the report released has conclusively added a restructuring of the ombudsman’s office by shifting it into the financial education office. The report also made the CFPB director (Mick Mulvaney) put up a plan which he announced, over bad reports of student loan servicers.
Also, Even before the complaints report from the CFPB, the LendEDU (an online marketplace) reported their complaints which contain much of the same information stated on the CFPB student loan complaint reports in 2018.
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LendEDU ranked the four federal loan service companies that received the most complaints per million loan recipients and Navient topped the list
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LendEDU has released its 2018 Student–Loan Complaint Report, with Navient Solutions LLC receiving the most filed against it.
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We have listed below the 10 student loan companies that received the most complaints in 2018. The data reported includes complaint numbers
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Most student loans — about 92%, according to a July 2021 report by MeasureOne, an academic data firm — are owned by the U.S. Department of …
The breakdown of student-loan complaints into categories by CFPB
According to the CFPB, the complaints were grouped into two categorical sets based on their analysis. They are stated below:
- Firstly, people who directly deal with private or federal student loans.
- Secondly, complaints from people who address debt collection for either private or federal loans.
LendEDU was able to figure out 8,340 complaints under the first categories mentioned above from the CFPB database. The majority figured from federal student loans rating 64% and private student loans complaints of 36%. The second category which based on the debt collection side recorded 1,606 complaints.
Companies that got the Student Loan Complaints
They are five different companies that got complaints both on federal and private student loans. They include Navient Solutions, AES/PHEAA, Nelnet Inc., Great Lakes, and ACS Education Services. Respectively, the below show the federal student loan complaint and private student loan complaints.
Check out for the Federal Loan servicers with the most complaints about Million Loan Recipients
Loans over millions are most seen among student loans more than other areas of loan servicing. Therefore the complaints are more in student loans and call for no comparison.
Due to the complaints in 2018 based on million recipients, LendEDU has postulated a table for the four federal student loan servicers that received the most complaints in 2018 to address the complaints by balancing the data. You may be wondering how this information is collected? However, the companies’ data based on numbers of recipients are gotten from the Department of Education’s Federal Student Aid Website.
The Company that has the most complaints – in number and volume
Navient as of 2018 was the most-complained student loan company aside from the categories stated above. The company alone sourced 42% of federal student loan complaints and 53% of private student loan complaints according to CFPB. In other words, Navient offers parents plus loans as part of federal and private student loans, making them be more prone to risk.
The independence of Navient after they functioned outside the Sallie Mae in 2013 posed them close to the list for the most-complained companies offering student loans in every single state and Washington, D.C. The same incident took place in 2018 but the only improvement was that there were no complaints in Alaska, Wyoming, and Washington, D.C. in these places as of that time, the AES/PHEAA was found wanting.
According to the report from the LendEDU, the A U.S. District Court judge was able to shot down a request by Navient to have a lawsuit dismissed. This request was seen to be a violation of state law by advising borrowers towards costly repayment programs.
Companies with the Most Debt Collection Complaints (Category 2)
recall that we earlier mentioned about two categories. Complaints were set into which this section is the second among them.
The LendEDU figured out an easy way to evaluate debt collection complaints. Which was born out of analyzed data; Most federal student loan debt collection complaints. Most private student loan debt collection complaints and the third is the most total student. Loan debt collection complaints. this really makes it easier to figure out and analyze companies. With the most debt collection complaints amongst federal and private student loans. To conclude them all, the complaints who go about federal debt collection seems to have prevailed compared to that of private student debt collection. But then, are you not comfortable with the approach to which collection agencies respond to debt collection? there are a set of rules that guide that which limits how debt collection agency can behave. ensure you go about them and grab techniques on how to fight back.