• Lower your monthly payments
  • Reduce stress and live your life
  • Avoid personal bankruptcy court

The Tricks of Student Loan Servicers

Who would have known that the road to student loan is has been made even more difficult because of the secrets and trickery done by the student loan servicers? Yes, it is true—there are things that these student loan servicers are not telling you, and below is a list of those things you may not have known regarding your student loans.


What Your Student Loan Servicers Don’t Tell You

Here are a few things that your student loan servicers do not tell you unless you ask them.

·         When Your Late Fees Are Added To Your Loans.

Whenever you have a student loan and you are given specific payment requirements, you are expected to meet those payment deadlines or risk having to pay a late fee. However, there are times when your student loan servicer fails to inform you of when the late fees are added. This could be an even bigger problem when late fees start to build on multiple loan accounts. Some companies take a payment on one loan and access it evenly among all of your loans. This is an illegal action, and if your servicer is responsible for doing this without your knowledge, you should report the company.

·         Whether Or Not Your Minimum Payments Are Correct.

Most student loans require you to make a minimum payment each month. However, when you have your loans deferred, your minimum payments could be the wrong amount. If there is a misunderstanding of what your minimum payments should be, it could result in your underpaying causing a late fee to be added to the loan. To prevent this, make sure to understand every aspect of your loan to know what you are required to pay. If you suspect foul play with your student loan servicing company, you should contact them immediately for answers.

·         What Happened To Your Grace Period?

In most cases, lending companies give you a grace period where you are not charged any late fees if you make a payment after the due date. Some grace periods last for 30 days up to 45 or 60 days. If you are not aware of any grace periods with your loan, ask to see if a grace period was included with your loan. If you do have a grace period and discover that late charges were still placed on the loan, contact your student loan servicer to get the charge removed.

·         Tax Information Needed For A Tax Deduction.

When you are paying back student loans, you are eligible to receive tax deductions on the interest you are paying back also. Some student loan servicers do not inform you of this or provide you with the documentation to be able to do that. It is important to understand that you are entitled to this information and should be given it automatically. With this tax deduction, students can receive up to $2,500 in funds.

·         How Bankruptcy Affects Your Student Loans.

If you have student loans and need to file for bankruptcy, you should understand that no student loan is erased when you file bankruptcy unless you show proof of an extreme hardship that prevents you from being able to repay your loans. Some student loan servicers may tell you that student loans cannot be erased in bankruptcy. In some cases, you can get is taken away.

·         Being Protected From Creditors.

Student loan servicers typically assume the role of creditors when student loans become past due. However, just like all other creditors, there are legal limits that must be set when informing borrowers of what they owe. Creditors are not supposed to contact borrowers during a certain time of the day and for a set number of times each month. It is important that you know your rights to not be harassed by any creditors and exercise those rights if you ever need to do so.

What You Can Do

Your student loans are definitely something that should be taken seriously. After all, this may be the first loans that are in your name, so you must take of them in order to keep your credit in good standings. Depending on the types of loans that you have, there are different times you will be required to start paying back the loans. You want to make sure you are ready to take on the challenge of repaying your student loan debts. For further information on any student loans that you may have, consult the Federal Student Aid website, and you should be able to find the answers to any questions you may have.

Student loans can be a hassle to handle, and your student loan servicers may be there to help you handle them, or can hurt you by not telling you certain things that you should know. When you are ready to repay your loans, look at this list to remind of what your servicers will not tell you.