What To Do If Your Student Loan Lender Messes Up Your Credit Report


The first step you should take is simply call your student loan servicer. Honestly, so many people want to jump to lawsuits and think they will get their student loans paid off because of a simple paperwork error. The chances of that happening are extremely low, and they are non-existent of you don’t even try to resolve the issue yourself.As we mentioned above, these are large organizations, and they are doing lots of different things. Mistakes do happen. The best thing you can do is call your lender and try to get the error resolved. Yes, it will take some of your time to make the phone call and document your conversation, but it’s the first step, and it will resolve a lot of issues.Just remember, document date, time, who you spoke to, and the nature of the conversation. Even better if you can take a screenshot of your phone to prove you called, or record the call (as long as you tell them you’re recording the call – they are anyway).If talking to your lender over the phone or via email isn’t getting you the results you need, it’s time to take things up a notch. Now’s the time to send a certified letter to your lender and ask for resolution to your complaint.Depending on your situation, you may need to send multiple letters. For example, if your lender is incorrectly reporting information to the major credit bureaus, you’ll want to send a lender to each bureau and your lender.When sending a letter to the credit bureaus, ensure that you include a copy of your credit report that is incorrect. Here’s a good sample letter to send to the credit bureaus.If you’re disputing something more serious, such as our examples above, you might need a debt validation letter. Here’s a great sample of a debt validation letter that will require the company to prove they have the right to collect the debt.It’s important to note that if you’re looking to get a debt validated, the lender or collector has 30 days to provide you with the information from the date they receive your letter. That’s why it’s essential you send the letters certified with proof of receipt.If you’re still not getting anywhere, you can file a complaint about your student loans servicing company to try to get the ball rolling. I call this step #3, but you can honestly do it concurrently to step #2.By filing a complaint, you’ll not only get the bottom of the pyramid moving, but hopefully get the top of the pyramid moving as well.The best place to file a complaint is the Consumer Finance Protection Bureau (CFPB). You can file a complaint online here: https://www.consumerfinance.gov/complaint/Make sure you take the time to document everything with your situation to hopefully get your complaint expedited.You can also file a complaint at the Department of Education here: https://www2.ed.gov/about/contacts/gen/index.htmlFinally, it never hurts to contact your Congressman. The President and the Secretary of Education have proposed various reforms to how student loans are serviced. If you’re having problems, making a complaint could put these potential reforms on their radar.Finally, if you’re still not getting the resolution you need, you might need to talk to a student loan lawyer and see if they can help. There are a few scenarios where you should jump right to this step:Otherwise, if you’re not making progress, make sure you’ve gone through steps #1-3 and documented everything before going to a lawyer. Strong documentation will make your case much stronger if you have one.It can be tough to deal with your student loan lender. It can be even tougher when they are making mistakes.Make sure that you still start at the top – jumping to a lawyer or paying for assistance when a simple phone call would work doesn’t make sense. If you’re not quite sure where to start or what to do, consider hiring a CFA or CFP to help you with your student loans. We recommend The Student Loan Planner to help you put together a solid financial plan for your student loan debt. Check out here.Mistakes do happen – but make sure you follow up. Nobody cares more about your money and financial life than you.

Written by Investors Wallets

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