With millions of students being served by public and private student loan providers, there are bound to be problems. The fact is that the current federal loan program has become too complex to manage. Borrowers have different repayment options with disbursements made on different dates and multiple rates. As a result, it’s impossible for the program to deal with every borrower without a single failure.
If your loan payments are not reported correctly, it can create a negative impact on your credit score. This can affect your ability to obtain loans for essential expenses, such as buying a house, a car, or paying for emergency expenses.
That’s why it is important that you take action and resolve any discrepancies and errors relating to student loan at the earliest. Below are some simple tips that you can follow to fix student loan errors when they arise.
Recognize the Problem, Take Instant Action
You must identify exactly what is the error, and take appropriate actions to resolve the problem. If the account balance is wrong, you must gather required documents relating to the payment history and submit it to the loan provider as a proof of the error. In case you have made all the payments but the statement shows that your loan is in default, you must contact your loan provider and submit documentary evidence showing regular payment of the loan.
If you think that loan service provider has reported wrong information to the credit bureau, you must submit a consumer dispute with the bureau. Get in touch with the three national credit bureaus (Equifax, Experian and TransUnion) and tell them that inaccurate information has been reported by the lending agency.
Sometimes the loan records erroneously put the name of wrong person in your loan record. To resolve this issue you need to contact your lender and find out the documents you need to submit to get the error resolved. You may be asked to provide a copy of your SSN or driving license to prove your identity and resolve the issue.
When talking with a customer rep on the phone, you must note down who you are speaking to and the date when the conversation is made. Also, do not forget to write what was discussed during the conversation.
Lastly, you must keep a copy of every letter and email that you receive from the company representative. Save every bill, letter, receipt, and email regarding the student loan. Also, when asked to provide copies of original files, you must send them through certified mail with a return receipt request.
Remember that you must keep note of every conversation that you have with the customer service personnel of the loan service provider. Follow up everything in writing as you will have documentary evidence of doing your part to getting the error resolved.
When it comes to resolving student loan errors, you must not allow your emotions get to you. Remain calm at all times even if you are not getting proper responses. Replying in an irrational manner can land you into greater troubles.