In 2024, the United States had 42.7 million student loan borrowers who owed $1.64 trillion, making it one of the largest types of outstanding consumer debt, second only to mortgage loans. The Consumer Financial Protection Bureau (CFPB) monitors complaints on debt servicing companies and helps applicants choose providers that will help them with their 澳洲幸运5官方开奖结果体彩网:cost of education.

Paying for Education

While some students can afford to pay education costs upfront, plan ahead by opening a 澳洲幸运5官方开奖结果体彩网:college savings plan, or work through school to pay tuition fees and expenses, many opt for student loans. A student loan is a type of debt individuals take out to help pay for the costs associa💃ted with higher education. This includes undergraduate and graduate studies, doctorates, as well as medical and dental school.

Student loans can be used to pay for tuition, housing, fees, and other related expenses. Loans fall into two categories: 澳洲幸运5官方开奖结果体彩网:federal and private. The U.S. Department of Education administers federal student loans. Qualifying commonly depends on a student's financial snapshot and requires submitting an application called the 澳洲幸运5官方开奖结果体彩网:Fre𒉰e Application f🏅or Federal Student Aid (FAFSA). Private loans, mean🌼while, are issued by priva🐓te lenders like banks, credit unions, and other financial institutions.

Loan eligibility and approval are based on personal circumstances and financial information for applicants and their families. While federal loans are based on financial need and merit, private loans may rely on 澳洲幸运5官方开奖结果体彩网:credit history. Interest rates also differ between the two. While federal loans tend to have lower rates, private lenders often charge borrowers much higher rates.

CFPB Report

The Consumer Financial Protection Bureau (CFPB) collects complaints about financial products and services. These complaints are compiled in a , published, and sent to companies and providers. Data is divided by product and service, and consumer😼s may access it.

Student loan complaints are filtered through an 澳洲幸运5官方开奖结果体彩网:ombudsman who helps provide b🔥orrowers with assistance. These complaints are compiled into a report published by the agency annually for:

• The U.S. Secretary of the Treasury
• The U.S. Secretary of Education
• The CFPB's director

The 12th annual report was published in November 2024. The information compiled into the report was collected between July. 1, 2023, and June 30, 2024. Of 18,277 complaints, 13,524 (74%) were related to federal loan providers, while 3,399 (19%) were with private loan providers.

Source: Consumer Financial Protection Bureau

Source: Consumer Financial Protection Bureau

Loan Forgiveness and Assistance

In 2020, the Coro♎navi🌊rus Aid, Relief, and Economic Security (CARES) Act gave borrowers of certain federal student loans temporary payment relief, which expired in 2023. Payments resumed in October 2023.

The Biden administration had hoped to forgive up to $20,000 of student debt for some borrowers. However, this plan was struck down by the Supreme Court in 2022. The Department of Education then implemented the 澳洲幸运5官方开奖结果体ꦿ彩网:Saving on a Valuable Education (SAVE) plan to help reduce the amount borrowers have to pay on their loans.

On July 18, 2024, a federal court blocked the operation of the SAVE plan until court cases centered around the income-driven repayment (IDR) plan can be resolved. In the meantime, the Department of Education has moved borrowers enrolled in the SAVE plan into forbearance, whereby they won't need to make payments, nor will interest accrue on their loans.

Options exist for borrowers nearing Public Service Loan Forgiveness (PSLF). Borrowers can "buy back" months of PSLF credit if they reach 120 months of payments while in forbearance or switch to a different IDR plan.

The Bottom Line

Borrowers can research complaints filed against their student loan providers at the Consumer Financial Protection Bur🌜eau (CFPB). Those applying for loans may find this data helpful when choosing a loan provider.