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CHAPTER FOURTEEN
OFFICE OF STUDENT FINANCIAL ASSISTANCE OMBUDSMAN
A new provision has been added requiring that the institution
provide the borrower with information on the availability
of the Student Loan Ombudsmanās office (at the Department
of Education) if the borrower disputes the terms of the loan
in writing and the institution does not resolve the dispute.
WHAT IS AN OMBUDSMAN?
An ombudsman resolves disputes from a neutral‚ independent
viewpoint. The OSFA Ombudsman will informally conduct
impartial fact–finding about borrower complaints.
They will recommend solutions‚ but will not have
the authority to reverse decisions. They will also work
to bring about changes that will help prevent future problems
for other student loan borrowers.
WHAT CAN THE OMBUDSMAN DO FOR ME?
The Ombudsman will informally research your problem
and determine if you have been treated fairly. If your student
loan complaint is justified‚ we will work with you
and the office‚ agency‚ or company involved in
the problem. On your behalf‚ we will contact:
- Other offices within the U.S. Department of Education‚
- Your private lender (banks‚ credit unions‚
savings and loan association‚ and others‚
- Your loan guaranty agency or firm collecting your
loan.
If your complaint is not justified‚ we will take
the time to explain how we came to the conclusion.
The Ombudsman is not an advocate or someone who will
automatically take your side in a complaint. We must consider
all sides in an impartial and objective way. Often‚
the process of finding all the facts of a complaint and
explaining that information to all the parties involved
leads to the development of reasonable and fair solutions.
Itās the Ombudsmanās job to help develop fair solutions
to complex and difficult problems.
WHEN SHOULD I GO TO THE OMBUDSMAN?
Itās best to think of the Ombudsman as a last resource.
We will try to help when
other approaches have failed. If you have a complaint‚
first calmly discuss it with the person‚ company‚
or office directly involved. If needed‚ ask to speak
with someone higher up‚ such as a supervisor. In
many cases‚ this action can resolve the problem or
help you better understand the reason for the answer you
have received.
When you have made a reasonable effort to resolve a problem
through normal processes and it still is not resolved‚
contact the Ombudsman.
ARE THERE PROBLEMS AND DISPUTES THAT THE OMBUDSMAN WILL NOT
HANDLE?
The OSFA Ombudsman does not provide general customer
services. For example‚ we donāt process general student
aid information requests or any federal aid application
forms. For general assistance‚ visit the OSFA
Web site.
Also‚ we donāt disburse loans‚ take in loan
payments‚ process deferments‚ or mail out forms.
Contact your lender or loan collection agency directly
for information about these services. If your loan is
serviced by the Direct Loan Servicing Center‚
please call 1–800–848–0979. If you donāt
know who your lender is‚ call 1–800–4–FEDAID.
We will not accept complaints about grants or private
sources of student financial aid. We also wonāt accept
complaints when the U.S. Department of Education has already
begun formal or legal investigations.
The OSFA Ombudsman will only accept complaints about
Direct Loans‚ FFELP Loans‚ Guaranteed Student
Loans‚ and Perkins Loans (collectively referred to
as Title IV Loans and authorized under the Higher Education
Act of 1965‚ as amended). The U.S. Department of
Education administers these loans.
WHERE ELSE CAN I GO FOR HELP?
The U.S. Department of Education offers a number of toll–free
telephone services and informative web sites. We suggest
you go to our Financial Aid for Students Home Page
at www.ed.gov/student
aid.
HOW CAN I RESOLVE STUDENT LOAN PROBLEMS ON MY OWN?
While there is no single best way to get action on a
complaint‚ there are a number of steps that you can
take on your own. Frequently‚ by your own actions you
can resolve the problem quickly. Here are a few suggestions
to help you get results:
- Before you complain‚ review your student loan
documents‚ promissory note‚ Borrowerās Rightās
and Responsibilities statement‚ and any loan
counseling materials you received from your school.
Try to determine what your rights are and what you
want to have happen. Gather together and have ready
any papers you will need‚ such as you promissory
note‚ repayment information‚ copies of any
deferment and forbearance forms you sent in‚
and copies of any letters and bills sent to you.
- Who you should contact depends upon the type of
loan you have and whether your loan is in default.
Perkins Loan problems: If the problem lies at the school‚
contact the financial aid office first. Also‚ ask if
the school has any kind of administrative review process or
ombudsman service. Many do. If you problem is with a collecting
agent‚ contact that agency first.
Direct Loan problems: Contact the Direct Loan Servicing Center
toll–free at 1–800–848–0979 or go to the
Direct Loan Web site.
FFEL and Guaranteed Student Loans: Contact your lender or
loan servicer. You borrowed the loan money form a lender.
A loan servicer is the business that sends you bills and notices
about repaying your loan. Find out if your lender or loan
servicer has a complaint resolution process that you can use
to appeal a decision that you feel is unfair or does not address
your problem. Another option is to contact the agency that
guarantees you loan. This information is found on your copy
of the loan promissory note. For often asked FFEL and Guaranteed
Student Loan questions and answers read: FFEL Program Frequently
Asked Questions.
- Start by clearly and calmly presenting the facts
of the problem. ALWAYS keep detailed records of people
you talk to‚ including names and dates‚
what you said and what they said.
- Ask for someone higher up if the first person you
speak with cannot help you. Work through the system
to take advantage of the customer services offered
by the school‚ lender‚ servicer‚ or
the Department of Education. Allow time for your request
to be processed. Some problems take more time to resolve
than others do.
- When you have done all you can on you own‚
contact the OSFA Ombudsman.
Note: Borrowers may contact the Ombudsmanās office at
1–887–557–2575 (not a toll–free call)
or at
http://osfaombudsman.ed.gov.
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