FedLoan Lawsuit: How To Change Your Loan Servicer?
FedLoan deals with billions worth of loans, they sometimes face lawsuits against their operations. This is because not all borrowers receive the service they expect from the loan servicer, which becomes a base for lawsuits.
In this guide, we will discuss previous lawsuits FedLoan faced. Besides, we will note how to change loan servicers if borrowers are not satisfied with the service.
The FedLoan Lawsuit of 2017
In 2017, the Massachusetts Attorney General started an investigation against FedLoan Servicing. The base of this lawsuit, allegedly, was the poor customer service FedLoan Servicing provided to customers.
The Incorrect Processing of Payments
Allegedly, FedLoan Servicing employees incorrectly processed some payments. Unfortunately, it means many borrowers made non-qualifying payments for forgiveness. As a result, they lost months of progress for the PSLF program.
Another cause for the lawsuit claimed misleading activities of the loan servicer. The lawsuit involves cases where the loan servicer recommended borrowers in financial challenges a temporary solution-forbearance.
TEACH Grant Failure
TEACH grant is financial aid provided to people serving as teachers. The awardees of this grant do not need to repay the grant as long as they remain eligible for the grant.
As a result of the lawsuit, FedLoan Servicing and the Attorney General settled. Based on the settlement, every borrower could request a review of their accounts to ensure there are no errors.
What Happened as a Result of the 2017 Lawsuit?
Swipe Up now to read the full post!