Why act quickly

Servicer errors can mean late fees, higher interest accrual, missed credit for payments, or incorrect eligibility for programs (for example, forgiveness or income-driven plans). Acting promptly preserves evidence and shortens the time your credit and loan benefits are at risk.

Step-by-step: how to file an effective complaint

  1. Identify the exact error and gather documentation
  • Collect payment receipts, bank statements, confirmation emails, loan statements, and any screenshots showing the discrepancy. Note dates, times, representative names, and call reference numbers.
  1. Contact your servicer first—documented and in writing
  • Call to report the issue but always follow up in writing (secure message through the servicer portal or certified mail). In writing, state the account number, explain the error precisely, attach copies (never originals), and request a specific remedy (e.g., reapply payment, remove late fees, correct payment history).
  • Ask for a timeline and a written confirmation of the servicer’s action.
  1. Escalate internally if needed
  • If the front-line representative can’t resolve it, ask to escalate to a supervisor or the servicer’s complaint/quality assurance team. Keep logs of these interactions.
  1. File a complaint with federal and state bodies
  • CFPB: Submit a complaint at the Consumer Financial Protection Bureau’s complaint portal. The CFPB shares complaints with companies and tracks responses; it’s an effective escalation step (consumerfinance.gov/complaint/). (CFPB)
  • Federal Student Aid (Department of Education) and the FSA Ombudsman Group: For federal loans, file at studentaid.gov or contact the FSA Ombudsman for unresolved disputes (studentaid.gov). (U.S. Department of Education)
  • State consumer protection offices or your state attorney general can help with private servicer issues.
  1. Dispute credit reporting errors separately
  • If the servicer’s error appears on your credit reports, file disputes with the three major credit bureaus and provide documentation. The Fair Credit Reporting Act gives you rights to dispute inaccurate information.
  1. Keep pressing and set reasonable expectations
  • Ask the servicer for a written response and proposed correction. If they do not respond or the fix is incomplete, re-file with CFPB/FSA and include the servicer’s history of nonresponse. While response times vary, requesting a reply within 30 days is a reasonable expectation to keep the issue moving.

What to include in your written complaint (checklist)

  • Your full name, account number, and contact info
  • Clear description of the error and the dates involved
  • Copies of proof (payment confirmations, statements)
  • The specific resolution you want and by when
  • A statement that you will escalate if the issue is not resolved (optional)

Real-world example (brief)

A borrower told their servicer they made payments during an authorized deferment, but the servicer marked them late and charged fees. We sent a certified letter with payment proofs, filed a CFPB complaint, and involved the FSA Ombudsman; the servicer reversed the late fees and corrected the payment history.

When to get outside help

  • If the servicer refuses to correct verified errors, contact a legal aid organization, a state consumer protection office, or a student loan counselor. For complex cases that threaten benefits (forgiveness or IDR recertification), consider an attorney who specializes in student loan law.

Resources and further reading

Common mistakes to avoid

  • Relying only on phone calls—always follow up in writing.
  • Sending originals—send copies and keep your originals safe.
  • Waiting too long—delays can make proof harder to gather and may harm credit.

Professional disclaimer

This content is educational and not legal or financial advice. For personal guidance, consult a licensed attorney, certified student loan counselor, or your state consumer protection office.