As countless debtors resume their trainee loan payments after the COVID-related time out on those payments ended in October 2023, numerous are seeing direct how the pandemic has actually impacted loan servicers’ capability to effectively handle and process these payments. Customers are experiencing hard-to-access client assistance, unmatched processing hold-ups, and mistakes in billing.
The Customer Financial Security Bureau’s (CFPB) current report, “Problem Spotlight: Federal Trainee Loan Go Back To Payment,” took a look at these problems in an effort to keep loan servicers responsible when they do not satisfy their responsibilities to debtors. The information of this report, released last month, reveal both the instant difficulties debtors deal with and the systemic drawbacks of the trainee loan servicing market.