A student loan ombudsman is an independent resource committed to helping student loan borrowers. They help borrowers identify better repayment options and explain interest and default charges. They also act as independent mediators between student loan borrowers and lenders. If you’re having problems with your
Issues A Student Loan Ombudsman Can Help With
A student loan ombudsman can help you with these loan-related issues:
Resolve Disputes
Disputes may arise between you and your lender for a number of reasons. They may have failed to credit you for a payment. Or they have sent an incorrect payment report to the credit bureaus. This can affect your credit score. If you cannot resolve the dispute directly with your lender, an ombudsman may be able to help.
Explain Loan-Related Concepts & Terms
Many loan-related mistakes arise only because borrowers don’t fully understand certain concepts and terms. If you have questions about how student loans work, you can reach out to the ombudsman for help. They will explain how student loan balances work, how lenders calculate interest, and more.
Explain Repayment Options
Choosing the best repayment option is not an easy decision. There are so many different options to choose from. Should you choose consolidation, an income-based repayment plan, deferment, or forbearance? Each option affects your short- and long-term finances differently. An ombudsman will help by looking into your loans to determine which one option will work best for you.
Review Collections
When you miss payments for a certain number of days, your loan goes into default. When this happens, your loan servicer assigns the loan to a collections agency. The collections agency is then responsible for collecting the outstanding amount from you. This can be a very stressful situation. If you’re not sure what to do, it’s a good idea to reach out to an ombudsman. They will help you understand the consequences. They will also draw out a plan so you can repay the money that you owe.
Issues A Student Loan Ombudsman Cannot Help With
A student loan ombudsman cannot fix all your loan related problems. They are primarily a neutral resource, mediating between you and your lender. But they have some limitations. They do not have the authority to process loan changes or grant requests for deferment or forbearance. Neither do they have the capacity to process or promote forgiveness applications. Only your lender or loan servicer has the authority to handle these requests.
Types of Student Loan Ombudsmen
There are three main types of student loan ombudsmen.
Federal Student Aid Ombudsmen – The Federal Student Aid Ombudsman Group helps with issues related to your federal student loans. Although the group is a part of the U.S. Department of Education, it operates independently of them. They are an unbiased resource and handle all disputes confidentially.
Private Lender Ombudsmen – Every private lender has their own ombudsman who is dedicated to helping students settle their loan issues. They act independently and confidentially and are unbiased when resolving disputes.
State Ombudsmen – Some states appoint their own representative who serves as an ombudsman. They may be known by different titles in different states but they serve the same purpose.
How To Work With An Ombudsman
If you cannot resolve your loan issues on your own, it’s time to get help from a student loan ombudsmen. Before you reach out, there are a few things you’ll need to do.
#1. Get All Your Loan Records In Order
When you get in touch with an ombudsman, they will want all details related to the issue. They will want to know details about loan amounts, loan start date, outstanding amount, and payment due dates. They will also want to know the nature of the problem. Make sure all your loan records are updated and in order before reaching out to an ombudsman.
#2. Keep All Loan-Related Documents Handy
Giving them details verbally won’t work. Ombudsmen will want to see written records of all loan transactions before they intervene. Don’t wait till last minute to gather all your loan documents and detailed records. This includes your loan agreement, payment slips, and acknowledgement receipts. Doing this in advance will save you a lot of time. The ombudsman will be able to start immediately on receiving the necessary documents.
#3. Keep Detailed Accounts Of Every Interaction
Whenever you interact with your lender, always make a note of the time and date of the interaction. Also make a note of the person you spoke to and nature of the discussion. Make this a habit from the very beginning. Good records can help you put forward a stronger case when trying to resolve any dispute.
#4. Complete Necessary Forms
Different lenders may have different processes for filing complaints or disputes. Most will require you to fill out a checklist before proceeding. This checklist generally asks you to outline your dispute and if you’ve done anything so far to solve the issue.
In most cases, you’ll need to provide information regarding:
- Your name
- Social Security Number
- Your date of birth
- Name of the college you attended
- Name of your lender or loan servicer
- What type of loan is in dispute
- The nature of the dispute
- What has been done so for to resolve the dispute
- Who you talked to and when
- What was discussed during the conversation
- What you hope to gain by the intervention of the ombudsman
#5. Stay Updated
An ombudsman will look into your complaint or dispute after they receive it. They will then guide you as to your next steps. Some issues get resolved easily. Others may involve more discussions and clarifications. Make sure to stay up to date on the progress and ask questions. This will help speed up the process.
One Important Thing To Keep In Mind
Ombudsmen are there to help you but they do not work for you. They will help you find solutions but they will not manipulate things to get a solution in your favor. Their main aim is to ensure that you and the lender are both treated fairly.
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| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
|
|
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
