Have A Private Student Loan Horror Story? Today Is The Last Day To Tell The CFPB

We see enough horror stories about private student loans that we know there must be quite a few of them out there. If you’d like to contribute to the public good by sharing your experience, the Consumer Financial Protection Bureau would like to hear what you have to say. And if you actually had a good experience the CFPB would like to hear about that, too.

Here’s what they’d like to know:

  • What kind of non-federal financing do families rely on to pay for education? When families choose private loans before exhausting their federal loans, what prompts this choice?
  • What sources do families rely on for information about private student loan options? What sources and types of information do students consider about debt loads? How effective are private loan disclosures?
  • What can students tell us about loans offered directly by the schools they are attending or have attended?
  • What experiences have people had with repaying private student loans? Does it affect field of study or career choice? What resources or techniques have assisted students with avoiding default and understanding their rights as borrowers?

You should understand that these are public comments, so if you’re looking for privacy, you won’t necessarily find it here. (You can always send your stories to tips@consumerist.com if you want to vent privately. We’re always listening.)

Here’s what will happen once you submit your story, according to the CFPB:

We will read every single comment. This summer, the CFPB and Department of Education will submit a report on the private student loan market to Congress. As we prepare our report to Congress on the private student loan market, we will use the comments we receive here to guide us as we prepare an in-depth view of private student lending.

In addition, your comment will be published in the Federal Register. Other people who may share your experience will be able to read your comment.

If you are interested in helping out, you can find more information about how to make a public comment here.

Your experience with private student loans [CFPB]

Comments

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  1. Loias supports harsher punishments against corporations says:

    Sounds like they don’t want to hear much about the current state of federal funding, just private and how people pay for lending in general. So, not critique about their own programs, just other programs.

  2. Chasing Headless Chickens says:

    I’ve said it before and I’ll say it again: The public student loan market is no better, but Congress has no interest in addressing that bursting bubble. That, and the higher education bubble. Tuition is outpacing inflation at a staggering rate, and I mostly blame the student loan industry for that.

    • dolemite says:

      Yeah, but so is healthcare. Pretty soon, no one but the wealthiest will be able to afford either.

    • hansolo247 says:

      It’s the fact that no matter how high prices go, the money will always be made available because it’s essentially risk-free.

      • Loias supports harsher punishments against corporations says:

        But that will backfire eventuallty, since at some point you just can’t pay that back. Even when you go into default on your student loan the most you can be garnished is 15%. And if you don’t go into default, the max percentage is less. Couple that with the 20-year guarantee that all student loan is forgiven, eventually huge balances will be forfeited and no one will want to lend money for student loans.

        There will be a breaking point, likely resulting in many schools collapsing.

      • OutPastPluto says:

        It’s risk free for the lender, not the borrower. Given this, interest rates should be much lower across the board. If the loan is being insured by the government, then it’s basically free money for the lender either way things go.

        Certainly the lack of anything to discourage lendors from originating a loan (no matter how bad it is) creates loans that really should not exist.

        However, it was the derivatives and bogus ratings of them that caused the real damage last time.

  3. clippy2.0 says:

    Sallymae raped and pillaged my village, and then threatened violence if I didn’t pay up in time!

  4. Thyme for an edit button says:

    I have plenty to say about my experience with public student loans. Too bad they don’t want to hear about that.

    • sponica says:

      I haven’t had a problem with my federal loans…granted I consolidated them with the feds to get the stafford loans out of sallie mae’s hands…

      • Thyme for an edit button says:

        Based on my experience, if you have a problem, “customer service” is like a brick wall and a complaint to the ombudsman’s office will take 10 months to get a response.

        Most recently, they require me to fill out a form by the end of the month and said in the letter that the form is on what turned out to be a non-existant page on the website.

        Forms available to order 24×7 from their customer service number? Their site says yes, but their actual phone system does not have a way to request forms. I faxed a request for the form over a week ago and have not received it yet. Fingers are crossed.

    • RayanneGraff says:

      Me too. Sallie Mae is the biggest bitch I’ve ever met.

  5. veronykah says:

    They should also add in federal loans, I have both and sent a comment about the private ones but my loan servicer for the federal loans has screwed me over time and time again, “processing” paperwork for MONTHS on end and trying to require me to pay when if they’d PROCESS the paperwork, I wouldn’t be making payments, etc.

  6. vdragonmpc says:

    What another commenter said is true. Sallie mae and others are raping the village. When they make a mistake or delay paperwork does the interest ever get refunded to the borrower? Uhm no.

    Those tools put me in repayment no less than 5 times while I was in school in a 4 year period. it was misery over a small loan that I took out for books but couldnt afford at the time. They ballooned a 960$ loan to 2600$… It was insane dealing with the original lender but guess who bought the loan? Yup Sallie Mae. I ended up paying it in full all at once as the yahoos couldnt even get billing correct.

    They made every effort to expand the cost of the loan and every effort to make my in school deferment null. They made it so I paid 3-4 months every 6 months like I was not a full time student. I offered to mail all the paperwork the sent me while I was in school to get a discount as it was quite the folder… They did not go for that.

    The best part? I overpaid the loan and they had to send me a check back because they were yet again wrong and sent the wrong payoff amount. Honestly I would not shed a tear if that staff at the company all went up in a meteor strike. Its the only ONLY blemish I have on my credit EVER. They truly suck.

    My fed loans have never been a problem paid and fine to date.