The Consumer Financial Protection Bureau (CFPB) is criticizing the Department of Education’s preferred companies for servicing its $1 trillion in student loans, underscoring potentially poor customer service. The scrutiny came in the form of a blog post by Rohit Chopra, the CFPB's top student-loan official, and used Education Department surveys that graded the servicers to determine how many new loans each will receive in the coming year.
Chopra noted that Sallie Mae ranked last in borrower, school, and federal personnel satisfaction and will receive the fewest new loans to service in the upcoming school year. The company is already facing numerous investigations over its handling of student loans and treatment of borrowers. Borrower advocates have praised the CFPB for highlighting the Education Department’s surveys; but others, including Maura Dundon of the Center for Responsible Lending, pointed out that although the Education Department could do more to make information available to borrowers, it would likely have little effect on the servicing of federal student loans. Dundon has criticized the surveys for failing to properly measuring borrower complaints.