In the student loan industry, the Department of Education hires servicers specifically to provide customer service to their borrowers. In that context, it’s ironic that borrowers often complain about these companies’ alleged subpar service and far worse behavior.
This doesn’t mean you should ignore your servicer or avoid asking for help. You’re not destined to get poor customer service by working with the servicer — that’s a myth that borrowers talk themselves into, especially if they’re struggling with their debts.
Student loan servicers are there to help you, but you need to help yourself too. Customer service representatives aren’t mind readers. By knowing what to say — and what not to say — you can have a positive discussion and ensure you receive the best service possible. Here are examples of how to approach your student loan servicer.
[Understand the many facets of the student loan process.]
— Don’t say, “I can’t pay.” Instead, say “I can’t pay because I’m unemployed, dealing with an unexpected expense, etc.”
Many borrowers call their servicers because they can’t afford to make their payments. In this situation, servicers may offer a payment postponement to get you back on track. The information you provide them will determine how helpful this option really is.
Federal student loan borrowers may be able to pause their payments temporarily via two different options: deferment and forbearance. Forbearance has its merits, but it’s not as good as deferment.
That’s because during a deferment, the government covers the interest on subsidized loans. You can find out if you have these loans by visiting the National Student Loan Data System.
If you only tell your servicer that you can’t pay, the servicer may funnel you right toward forbearance. But if you detail your financial situation, the servicer may be able to identify a better option — like an unemployment deferment, economic hardship deferment or income-driven repayment plan — that meets your short-term needs and saves you money in the long run.
[Know when it’s OK to postpone your student loan payment.]
— Don’t say: “You never contacted me about my loans.” Instead say, Do say: “What contact information do you have for me?”
You are responsible for repaying your student loans — regardless of whether you receive a bill from your servicer. The student loan servicer can change, which makes it so important to have up-to-date contact information on file.
Call your servicer to confirm that your phone, email and address information on file are accurate. After all, it’s impossible for a servicer to provide good customer service if it can’t reach you in the first place.
— Don’t say, “You messed up my extra payment.” Instead say, “Here’s how I want my extra payments applied.”
Federal regulations dictate how loan holders must apply student loan payments. First, fees are covered, then interest, then the principal balance. Servicers have to process your payments in this manner.
[Get tips on understanding the pieces of your student loan payment.]
If you plan to increase your payments to save money, you must communicate this to your servicer. Without additional instruction, the servicer will consider that extra money an additional payment, pushing out your next due date accordingly. If the loan holder services multiple loans for you, it may split that money among your debts in a way you don’t want it to.
Instead, provide your servicer with detailed written instructions on how to apply that extra money, whether you want it to go toward your biggest balance, your highest interest rate loan, etc. Then call your servicer to ensure it understands your request — and check your statements to see that the servicer has followed through with it.
— Don’t ask, “How do I get Obama student loan forgiveness?” Instead ask, “How do I get Public Service Loan Forgiveness?”
“Obama student loan forgiveness” isn’t a thing. If your servicer doesn’t tell you that, make sure you’re talking to your actual servicer.
Some companies dupe borrowers by using similar names to well-known servicers. You can avoid the confusion by double-checking your servicer’s information in the National Student Loan Data System.
While your servicer can’t grant you forgiveness, it can point you in the right direction. If you plan to pursue Public Service Loan Forgiveness, ask your servicer about any actions you need to take to ensure your eligibility. For instance, you may need to switch your repayment plan or consolidate into the federal direct loan program.
— Don’t lose your cool. If your servicer doesn’t say what you want to hear, remain calm. The Student Loan Ranger understands how frustrating dealing with debt can be, but the unfortunate truth is that sometimes the solution you want isn’t available. By staying calm and explaining your situation, you can at least learn the best possible alternatives.
More from U.S. News
When Student Loan Forbearance Is a Good Idea
When Getting Your Loans Out of Default Is a Bad Idea
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Know How to Talk to Your Student Loan Servicer originally appeared on usnews.com
