Student loan repayment problems frustrate borrowers, prompting federal response
The Consumer Financial Protection Bureau said federsl student loan borrowers are facing "key concerns" in restarting payments.
Federal student loan borrowers are confronting some challenges in restarting their payments since a pandemic-era pause ended in October.
The Consumer Financial Protection Bureau said Friday that borrowers are dealing with inaccurate and untimely billing statements and delays in processing, among other issues.
“Borrowers are encountering long hold times when trying to reach their student loan servicer, experiencing significant delays in application processing times for income-driven repayment plans, and receiving inaccurate billing statements and disclosures,” the federal agency said.
The CFPB released the “issue spotlight” as part of its oversight of student loan practices since payments were restarted in October for more than 22 million borrowers.
Federal student loan borrowers had a reprieve in payments for more than three years as a pandemic-era repayment pause was extended multiple times since it instated in March 2020.
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