Oh, no! A debt collector lying!
Yes. Student loan debt servicers
are behaving like mortgage loan
servicers, according to a CFPB
(Consumer Finance Protection Bureau)
The Story by Eric Reed discloses some of the ways the student loan servicers are screwing the student loan borrowers.
Virtually all student loan borrowers have multiple loans.
Though, usually all the student loans are handled by one servicer.
So, let’s say your total payments are $800, but you only can send in $700.
The servicer applies a PARTIAL payment to all your loans, so they can charge a late fee for EACH student loan.
ILLEGAL LATE PENALTIES
Usually, the first payment on any student loan is 6 months, or more, after you leave school.
Of course, you can start paying early.
Some servicers were adding late payments, to payments that were actually being made EARLY.
INCORRECT TAX ADVICE
I did not know this, but you can deduct up to $2,500 per year student loan interest on your taxes.
But, you need the verification from the servicers.
Which some of them screw up, although this one does not make them any money.
Creditors love to tell you you CANNOT bankrupt out of their debt.
Now, it is difficult to discharge student loans in bankruptcy, but, NOT impossible.
The CFPB has caught many servicers lying about this, implying or even outright telling graduates that student loans can never be discharged in bankruptcy. (from the linked to article)
The Dodd-Frank Act, among other reforms, protects borrowers from harassment by debt collectors. Many loan servicers have been ignoring this provision, making constant calls to delinquent graduates often early in the morning and late at night. (from same story)
The Fair Debt Collection Practices Act also applies in some circumstances.
Contact a knowledgeable attorney with your questions.