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Consumer agency hears about student loan servicing problems

WASHINGTON (AP) -- The Consumer Financial Protection Bureau says borrowers are reporting widespread problems with the companies servicing their student loans.

In a report released Tuesday, the bureau found servicing practices that "may be contributing to student debt stress" after analyzing more than 30,000 comments from the public as part of an inquiry launched in May.

Some of the problems included lost paperwork and processing delays that could lead to missed payments and late fees. Some borrowers said they had trouble getting errors fixed; others couldn't easily access complete information on alternative repayment options to help them avoid default.

The federal agency, which oversees the student loan industry, said it will consider industry-wide...


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