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Student loan borrowers complain of repayment snags

3 years 3 months 1 week ago October 16, 2013 Oct 16, 2013 Wednesday, October 16 2013 October 16, 2013 2:30 PM in News
Source: Associated Press

WASHINGTON- The federal official who looks into problems with student loans says his office received more than 3,800 complaints in the last year from those borrowing for college using private student loans.

Problems with private student loans often relate to payment processing and requests for loan modifications.

Many of the repayment problems occurred when borrowers attempted to pay off loans early or in a certain sequence to lessen the impact of higher interest rates.

The report on student loans came from the Consumer Financial Protection Bureau.

Private student loans generally have higher interest rates than federal student loans and the options to re-finance them are much more limited. Private loans aren't issued as much as they were before the financial meltdown of 2008, but many borrowers still owe money on them.

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