17k Complaints & Counting Filed Against Student Loan Servicers. Here’s What You Can Do About It.

With a staggering 17 THOUSAND complaints of alleged fraud and misleading business practices filed against several student loan servicers, docupop did some digging to get to the bottom of the dirt. To learn how the system really works, see below for your behind-the-curtain guide to the phases of the student debt, cracks within the system, and solutions to help keep you safe.

Phase 1: College

As a current or former student, you have (or had) the option to take out either private or federal student loans. Federal loans are little easier to get, but private loans could help you save money if you negotiate a lower interest rate. For those of us who went to college straight out of high school, typically very little research or financial counseling is offered to ensure that we, the borrowers, take out the best loan for us. Instead, it’s a bit more like: “Here’s the price kid, if you don’t have the money, either sign here for a student loan or don’t attend class.” Well then, loans it usually is. Cut to a few years later… we graduate or change paths and boom… a giant bill hits your mailbox with your servicer’s name on it.

Phase 2: The Bill

So who are servicers? If you took out loans from the government, shouldn’t the bill be from them? You’d think so; but that’s not actually how it works. Once it’s pay-back time (which is typically 6 months after you’ve stopped taking classes), your loans are then SOLD to a third party servicer; or the U.S. Department of Education contracts with a third party servicer to collect your debt. Make no mistake that student loan servicers are in fact for-profit debt collectors.

Phase 3: The Problem

With over 1.5 TRILLION dollars at stake, it’s no surprise that 5 star service may or may not be a servicer’s top priority. Hence the recent lawsuits (i.e. a Florida borrower is claiming that his servicer called 75 times in 1 day to collect debt; another borrower is alleging that she missed out on thousands of dollars in loan forgiveness after being mislead into the wrong  plan). Even our own team members say they’ve experienced 2 minute talk-time limits while speaking to servicers and/or numerous phone transfers trying to find a single person who’s actually trained on Public Student Loan Forgiveness. To dig even deeper, here’s what one servicer’s own former employee wrote via Glassdoor:

It doesn’t take a rocket scientist to know that untrained employees counting the clock rarely know, or for that matter, have the time to thoroughly look into a borrower’s individual situation to find and explain the options that are right for them. This lack of customer service on the servicer’s end could cause you to miss out on benefits and/or get placed in a repayment program that just isn’t right for you.

Phase 4: The Solution

So how can you protect yourself? Enter DOCUPOP! Unlike loan servicers, docupop has your budget and best interest in mind at all times. We provide a listening ear ready to hear your unique story so we can help you the find and file for the BEST repayment program possible (which could mean a much LOWER PAYMENT for those who qualify). Tell us about your day, your concerns, your financial goals – docupop has no talk limits! All of our Member Success Coordinators are thoroughly trained on Public Service Loan Forgiveness, as well as every possible repayment option available to you based on your personal qualifications.

Phase 5: Call Docupop!

Get the protection you need and the knowledgeable, friendly service we all enjoy with docupop! Click below to get started and see what all of the fandom is about!