The Department of Education has created a new position called the Student Loan Ombudsman. This office has been directed by Congress to be readily available should students who are having problems with their student loans need assistance. The ombudsman primary responsibility is to resolves disputes from an independent and neutral standpoint.

1. What does your office do?

The Federal Student Aid Ombudsman will conduct an informal and impartial fact-finding about your student loan complaints. They will determine whether you have been treated fairly and if your student loan complaint is justified, they will work with you and the office, agency, or company involved in the problem. However, if your complaint is not justified, they will take the time to explain to you how they have come to that decision. Ombudsman will also recommend ways to resolve problems in addition to bring about changes that will help prevent future problems for other student loan borrowers.

2. Is the service free?

This is a free service provided to you by the US Department of Education.

3. What are some things you cannot help me with?

It’s the Ombudsman’s job to help develop fair solutions to complex and difficult problems. This means that they will not automatically take your side in a complaint. They will consider all parties involved in an impartial and objective way. And they do not have the authority to reverse decisions.

4. When should I contact an Ombudsperson?

It’s best to think of the Ombudsperson as a last resort because they will only try to help when other approaches have failed. If you have a dispute, first calmly discuss it with the person or company directly involved, preferably someone in management. In many cases, your complaint can be resolved at this stage or at least you will better understand the issue. After you have made every effort to bring your problem to a favorable resolution first and it still is not resolved, then you should contact the Ombudsman.

5. What should I expect from you?

We will help you if we determine that your complaint is justified. Further, we will treat you courteously and with respect. We will keep you informed of our progress and will respond to you in a timely manner.

6. I declared bankruptcy, why am I still being billed?

Your loan is not dischargeable if you filed Chapter 7 or Chapter 13 bankruptcy after October 7, 1998, unless the bankruptcy court finds that repayment would impose undue hardship on you and your dependents.

7. What is my loan balance?

If you are not sure what your loan balance is or you just need help figuring out why your loan balance is different from expected, an ombudsperson should be able to give you that information.

8. What are my options if I cannot afford my loan payments?

If you have problems making your student loan payments, you must contact your loan servicer immediately. You may qualify for a deferment, forbearance, or other form of payment relief, or even that you meet a condition under which your student loan can be cancelled or discharged.

9. How can I postpone my loan payments?

If you are having difficulties making your student loan payments, you must contact your loan service immediately. There may be ways for you to work out an arrangement in which you can defer or postpone your loan.

10. What if I do not receive a fair conclusion?

Any complaints in which you feel you received unfair treatment by the servicer, the school, the Dept. of Education, or otherwise will be reviewed and you will receive an explanation about how they have come to that decision.