CFPB Complaint

GREAT LAKES – CFPB Complaint ID 2492920

Consumer Complaint Submission

Date Received: 2017-05-24T00:00:00

Product: Federal student loan servicing

Issue: Struggling to repay your loan

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: Like many Americans, my wife and I have been paying student loan debt for the last 17 years. During the consolidation process in the XXXX ‘s our loans got locked in with 7.8 % interest rate, even though some of the loans had lower interest rates we figured it would be easier to manage the loans. After the consolidation process-I was paying between $ 500-600 dollars a month on my student loan but because of the 7.8 % interest rate and several forbearance periods on the loans, the initial principal balance kept growing out of control. Besides the interest growing out of control it was also hard to keep track of who was servicing the loans. The loan servicers kept changing for both my wife and I, from XXXX XXXX to XXXX XXXX to XXXX to Great Lakes, etc. we were not able to keep track of the payments we had made and the manner the loan servicer was applying for our payments. Each time the loan was sold or taken over by another servicer, they only showed the amounts from the time they received the loans and did not easily include past loan info from the other servic er ( s ). At one point a l ump sum payment in the amount of {$5000.00}, to my wives loan was completely applied just to interest and we saw no real drop in the amount owed. My wife and I suffered a tremendous loss during the financial crises of XXXX . Our savings and business were practically demolished. It was at this point, I reached out to my loan servicer and asked if I could negotiate a lower interest rate for the student loans, but I was denied. I was told that since we had consolidated a few years earlier, we could not reconsolidate and there were no other plans or income repayment opportunities. My only recourse was forbearance or deferment. I realize there are a number of income repayment plans now available and that works for new student loan borrowers, but it does n’t do any good for older student loan borrowers that got trapped during the financial crises. Most our loans are loaded with interest and without the ability to renegotiate. Why is it that most banks got close to 0 % interest loans to pay down their debt during the financial crises of XXXX – XXXX , and y et US Citizens with student loan debt were not able to get refinancing and debt relief for whatever reason and were only provided with options that increased our debt load, and is keeping us tethered to unreasonable interest rates, unreasonable length of time for paying said debt and directly affecting our ability to purchase a home or property.

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State/Zip: MO 641XX

Company Response to Complaint: Closed with explanation

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 2492920

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