Mar 14, 2017 09:52 AM EDT
Erroneous personal information students submit to student loan providers might have caused extra charges. This results to huge student debts that students could hardly afford.
The Consumer Financial Protection Bureau or CFPB issued a warning to students to provide correct information to student loan services. They should update their records especially their date of enrolment and date of expected graduation. It has been observed that erroneous data have cost students hundreds to thousands of dollars, according to ABC News.
The CFPB gave students some tips on how to avoid paying more than the amount they should pay back for their student loans.
The amount due to student loan service providers is affected by the length of time the student stayed in school. If a student spent four years in his studies, he should start repaying his loan six months after graduation. Students who graduated in less than four years should notify the services or student loan services provider. He could start repayment after six months and reduce his amount payable.
Fix Problems Right Away
Students who think that their monthly payment is more than what they should pay must tell his servicer right away. He could ask for computation of his student loan so that he could make the correct monthly payments.
File A Complaint
If the servicer does not make any action regardless of a student's request for computation, the student can file a complaint to the Consumer Financial Protection Bureau or CFBP.
The CFBP is a government agency that keeps on eye on companies that violate consumer law. Complaints regarding credit card companies, banks and financial institutions and student loan service providers were filed and resolved by this agency, according to Consumer Reports.
This agency is tasked to help consumers who are overcharged for payments of credit card dues and loans. Students can file a complaint in the bureau any time and expect immediate action.
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