One of the biggest stresses that people have in the United States is their debt. One debt that almost every person can accrue is student loan debt. Taking control of your student loans can bring a person a strong sense of financial freedom.
There have been many problems in the world of student loans. Many of the problems are being addressed by the Consumer Financial Protection Bureau (CFPB). They are hoping to help reduce the confusion over the payments, how they are applied, as well as looking out for the best interests for the individual consumers.
The Troubles of Some
One of the major troubles that you are having, when taking control of your student loans, is that they have no idea to whom they owe money. A lot of this is not the borrowers’ fault. Many times lenders are not clear, as to whom you are getting the loan through.
Another issue that many students experience is the confusion of prepaying on a student loan. Many students have sent in payments ahead of schedule and the payments do not always go through. Sometimes the payments can also be delayed. Many times this is frustrating for the borrower.
It can be a problem when post graduation, is attempting to take control of your student loans and you learn that the loans have been bought and sold several times changing whom your lender is with little to no communication to the borrower. This can be complicated for many borrowers because every time the loan changes hands a new set of payment arrangements needs to be made. Since you are not always informed of this change, you could be sending your payments to the wrong company entirely. Many times it is the past due notices that cause borrowers to learn of their loan status.
Paying on Principal
Many times when trying to take control of your student loans a borrower will send in money that is above and beyond their minimum payment, or make an extra payment. This has caused problems for many individuals. Many lenders do not apply the extra money to the principal balance as the borrowers are expecting. It is a common practice that the extra will only pay the account forward, not reducing the principal or the interest that is earned.
What can you do to take control of your student loans? How are borrowers to take action? The first thing that borrowers did was write letters and logged their complaints in. This has proven to be the right course of action because the CFPB (Consumer Financial Protection Bureau) has decided to take action. The CFPD already has the ability to oversee the loans within bank servicers. However, not they are also taking over the authority of those student loans that are being services by a non-bank lender. This will mean that for at least 49 million borrower accounts someone is holding the lenders accountable. The CFPB will have the authority to monitor seven of the biggest lenders in both the federal and private student loan sector.
This new oversight is beneficial because the CFPB will not be checking to make sure that the individual lenders are adhering to the federal consumer protection laws as well as their standards. The CFPB will also be watching to ensure that there are no unfair or even deceptive practices going on with the lenders or to the borrowers of student loans.
What Can You Do
This problem is not something that will go away when the CFPB becomes in charge. There are still things that you as the borrower should do.
Continue to notify the CFPB if you feel that your payments are not being applied fairly or if the lender is being deceptive. It is the complaints that have been made by the borrowers that have led to the CFPB taking action now.
Submitting a claim is as simple as plugging in a website. Go to the CFPB website and fill out the form. From here, you can also monitor the status of a complaint that you have made. By making the lenders accountable, you are able to help contribute to the continuation of the forward thrust of the program. Being willing to take control of your student loans and working with the CFPB. They are able to take the unfair actions by lenders that can allow you to obtain freedom from your student loans.
Whenever you are able to take control of your student loans, you will become financial free. With the help of the CFPB many of the problems that you can have with lenders will be able to be eliminated. Be sure that you look into the problems that you are having. Note the changes that are going to be through the new abilities of the Consumer Financial Protection Bureau and how they can help you take control of your student loans.