As countless debtors resume their trainee loan payments after the COVID-related time out on those payments ended in October 2023, lots of are seeing direct how the pandemic has actually impacted loan servicers’ capability to effectively handle and process these payments. Debtors are experiencing hard-to-access client assistance, unmatched processing hold-ups, and mistakes in billing.
The Customer Financial Defense Bureau’s (CFPB) current report, “Concern Spotlight: Federal Trainee Loan Go Back To Payment,” took a look at these problems in an effort to keep loan servicers responsible when they do not satisfy their commitments to debtors. The information of this report, released last month, reveal both the instant difficulties debtors deal with and the systemic imperfections of the trainee loan servicing market.