Military and Student Loan Borrower? Federal Regulators Stepping in to Protect You

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Tuesday, May 13th, 2014

Today federal regulators cracked down on Sallie Mae, the largest servicer of federal and private student loans.  The enforcement actions involve the U.S. Department of Justice which alleged that Sallie Mae systematically violated the legal rights of U.S. servicemembers, and the Federal Deposit Insurance Corporation (FDIC) which reached a settlement with Sallie Mae over allegations that Sallie Mae engaged in student loan servicing misconduct.

Sallie Mae is ordered to pay $96.6 million in restitution and penalties.

If you are a military servicemember and have student loans, check out the Consumer Financial Protection Bureau (CFPB) guide which contains clear information on the various ways student loans can be repaid.

Do you have a complaint about how your student loan servicer is handling your loan?  If so, complain to the CFPB.   Here’s how:

  •  Go online at www.consumerfinance.gov/complaint
  •  Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
  •  Fax the CFPB at 1-855-237-2392
  •  Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244
  •  Additionally, through “Ask CFPB,” consumers can get clear, unbiased answers to their questions at consumerfinance.gov/askcfpb or by calling 1-855-411-CFPB (2372).

Are you finding it difficult to manage your student loans?  If so, please share your story with us in the Comments section below.  Consumers Union thinks that all student loan borrowers deserve to be treated fairly by their student loan servicers so we’re actively fighting to protect your rights.  Your stories help us make a strong case for reform.

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