This is what borrowers have been saying all along! Now how do you take responsibility for the failure and fix it?
"Federal Watchdog Issues Scathing Report On Ed Department's Handling Of Student Loans"
...Instead of safeguarding borrowers' interests, the report says, FSA's inconsistent oversight allowed these companies, known as loan servicers, to potentially hurt borrowers and pocket government dollars that should have been refunded because servicers weren't meeting federal requirements.
"By not holding servicers accountable," the report says, "FSA could give its servicers the impression that it is not concerned with servicer noncompliance with Federal loan servicing requirements, including protecting borrowers' rights."....
https://www.npr.org/2019/02/14/694477547/federal-watchdog-issues-scathing-report-on-ed-departments-h...
"Federal Watchdog Issues Scathing Report On Ed Department's Handling Of Student Loans"
...Instead of safeguarding borrowers' interests, the report says, FSA's inconsistent oversight allowed these companies, known as loan servicers, to potentially hurt borrowers and pocket government dollars that should have been refunded because servicers weren't meeting federal requirements.
"By not holding servicers accountable," the report says, "FSA could give its servicers the impression that it is not concerned with servicer noncompliance with Federal loan servicing requirements, including protecting borrowers' rights."....
https://www.npr.org/2019/02/14/694477547/federal-watchdog-issues-scathing-report-on-ed-departments-h...
Yikes! Based on this, I'm extremely grateful that my interactions with Fed Loan Servicing have been as good as they have been. Of course, I've only had to call them a few times in the last 9 years.
I have had many problems with this servicer, but also when things are running smoothly I've learned they're really still messing things up.
For exactly, you figure that your payments are being made so they're counting as IDR. Maybe not. That's why I request my counts annually. But most reps ask me if it's for PSLF (no) and say they can't do this. They can. It takes 3+ phone calls or countless emails to just get what I asked for.
Another situation is they aren't abiding by the REPAYE rules of applying the gov partial and full payment of interest. I never would have known if I have sat down and done the math. Most borrowers don't even know this and/or assume it's being done.
They handle the accounts this way because it means they will "accidentally" make more money and the Dept of Education isn't holding them accountable. It's frustrating.
For exactly, you figure that your payments are being made so they're counting as IDR. Maybe not. That's why I request my counts annually. But most reps ask me if it's for PSLF (no) and say they can't do this. They can. It takes 3+ phone calls or countless emails to just get what I asked for.
Another situation is they aren't abiding by the REPAYE rules of applying the gov partial and full payment of interest. I never would have known if I have sat down and done the math. Most borrowers don't even know this and/or assume it's being done.
They handle the accounts this way because it means they will "accidentally" make more money and the Dept of Education isn't holding them accountable. It's frustrating.
Too bad there has been so little accountability. Hopefully someday it’ll turn around.
