CFPB Helps Recover $750 Million in Student Debt Relief

A new report by the Consumer Financial Protection Bureau (CFPB) detailed more than 20,000 complaints received by the agency over the past year related to student loans. Up until last year, the Bureau had only fielded 40,000 complaints on the topic since it began tracking consumer grievances in 2011. The CFPB noted that,

“This report offers three illustrative examples of how an effective consumer complaint process can empower individual consumers to shape public policy. The report describes how consumer complaints led to reforms that expanded invocation of protections through automation; improved borrower outcomes through enhanced, timely, and accurate borrower communication; and mitigated risk of unanticipated borrower harm by spurring industry to make changes to key loan terms.”

According to a CFPB press release, the agency’s complaint resolution process helped consumers regain $750 million in relief.

The CFPB announced earlier this year in its semi-annual report that it would be increasing supervisory efforts over student loan servicing. Student loan debt in America currently tops $1 trillion and may mirror the mortgage crisis of 2008.