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Guide to fixing errors when entering student loan repayment

Melanie Meths Abangan|PSLF|December 10, 2023
Guide to fixing errors when entering student loan repayment

In recent developments surrounding student loan repayment, borrowers are facing unprecedented challenges, ranging from inaccurate payment statements to credit reporting issues. In this blog post, we'll discuss the key issues, potential consequences, and, most importantly, provide actionable solutions to help you navigate these complexities.

Understanding the Landscape: The current situation where borrowers are faced with multiple errors relating to their student loans has prompted Congress to request a detailed report from the Department of Education by December 15th, highlighting the myriad issues affecting student loan borrowers. The anticipated repercussions include credit reporting discrepancies and the possibility of negative impacts on borrowers' credit scores.

Common Issues Faced by Borrowers:

  1. Inaccurate Payment Statements:
    Many borrowers are experiencing discrepancies in their payment statements, receiving either incorrect amounts or no statements at all. Servicers have undergone changes, leading to confusion and potential communication errors.
  2. Wage Garnishment Challenges:
    Despite the on-ramp into repayment supposed to halt wage garnishment for a year, reports indicate that some borrowers are still facing garnishment issues. Wages are being garnished ahead of the designated on-ramp period, causing financial distress for affected individuals.
  3. Credit Reporting Dilemmas:
    Servicers continue to report issues to credit agencies, even when borrowers are not at fault. Despite legislative efforts, the lack of control by servicers over credit reporting agencies poses a significant challenge.
  4. Support and Communication Problems:
    Support issues abound, with consumers reporting extended wait times when trying to contact servicers. Failures in providing on-time billing statements by major servicers contribute to insufficient notice for borrowers.

Proactive Solutions:

  1. Addressing Inaccurate Payment Statements:
    Immediately secure message your servicer with details of the discrepancy. If wait times are long, consider calling when traffic slows down. Utilize online student loan calculators to independently verify your payment amount.
  2. Resolving Wage Garnishment Issues:
    Contact your HR payroll provider and inform them of the illegal wage garnishment. Reach out to the entity responsible for garnishment administration to rectify the error.
  3. Dealing with Credit Reporting Challenges:
    Utilize letters and templates available through services like LoanSense to liaise directly with your servicer. Pull a free credit report from to independently verify reported issues across all three credit reporting agencies.
  4. Navigating Support and Communication Problems:
    Be persistent in contacting your servicer, utilizing both secure messaging and phone calls during less busy periods. Keep an eye on developments from the Department of Education, which is expected to release a framework for monitoring servicer actions.

Looking Ahead: As the situation unfolds, it is crucial to stay informed and proactive in addressing any challenges you may face. We at LoanSense are closely monitoring updates and will provide timely information on the Department of Education's framework and any developments related to on-ramp into repayment issues.

Beyond Student Loans: On a personal note, the blog post also touches upon broader financial topics, including house hacking, real estate investments, and setting up a solo 401k for gig workers. If these topics interest you, talk to us, and we'll explore them in future content.

Conclusion: In times of uncertainty, knowledge and proactive measures become invaluable. Share this information with those who may find it relevant. We'll continue to keep you informed on the latest developments in the student loan landscape.

If you need personalized assistance or have questions about your specific situation, our experts at LoanSense are here to help. Visit our website at to learn more about our services and get in touch. You may also check out our YouTube Channel for more informative discussions and topics related to student loan debt.

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