The Consumer Financial Protection Bureau on Monday issued a warning to consumers to pay close attention to their personal information on record with student loan servicers as errors are popping up that can cost borrowers dearly.
About 44 million Americans have student loan debt totaling $1.3 trillion.
The watchdog agency said it gets thousands of complaints each year from consumers about issues with student loan servicers, which are the companies they submit payments to each month. But they are increasingly hearing about problems tied to incorrect or incomplete enrollment status information.
Enrollment status tracks whether someone is enrolled in college or university and their expected graduation date. It helps determine when someone must begin repaying their student loans and how interest is calculated. But the CFPB says bad information is costing some borrowers hundreds in additional interest charges, leading to unexpected bills, hurt