By Ryan Laspina
Senior Specialist, Red Flags and External Reviews
In a perfect world, Federal Student Aid (FSA) loan borrowers would take out loans, attend college, graduate and pay back their loans on time without any issues or disputes. Some students go through the entire life cycle of their loans without any hiccups.
Other students are not quite as fortunate. There are a variety of loan disputes you may have at any time during the life cycle of your loans. Here are some common examples of FSA loan disputes and helpful tips to resolve those disputes.
What do you do if your account balance is not correct?
If you paid off more of your loan than your account balance shows, gather all of your loan paperwork, scrutinize your payment history and contact your loan servicer (with your proof) to discuss the matter. Sometimes mistakes are made on both ends, so a discussion with your loan servicer should solve this issue.
What do you do if your loan status is not correct?
If you paid all of your loan payments on time and your loan status is default, check your payment history and gather all of your loan documents. Contact your loan servicer to discuss the status of your loans.
What do you do if inaccurate information was reported to the major credit reporting agencies?
If your credit history shows loans that you did not take out or has a loan with the wrong amount, file a consumer dispute with each of the three credit reporting agencies. These agencies are Equifax, Experian and TransUnion.
What do you do if someone has compromised your identity and taken student loans out in your name?
Unfortunately, this is a scenario that can happen, especially at online universities. All universities have measures in place to prevent identity theft, but criminals can still compromise your identity.
If you feel you are a victim of identity theft, immediately contact the loan provider who serviced the loans, and the school you used those loans. In addition, contact credit reporting agencies Equifax, Experian and TransUnion to let them know you are a victim of identity theft.
Loan servicers will be more than happy to listen to your loan dispute. If a serious issue has taken place, always try to resolve it with the loan servicer before going elsewhere.
If the loan servicer cannot resolve your complaint, contact the university’s FSA Ombudsman Office as a last resort. However, only use this option once you exhaust all of your other options.
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