{"id":40991,"date":"2026-02-09T18:44:56","date_gmt":"2026-02-09T18:44:56","guid":{"rendered":"https:\/\/financialrush.com\/?p=40991"},"modified":"2026-02-09T18:44:56","modified_gmt":"2026-02-09T18:44:56","slug":"cfpb-finds-record-high-student-loan-complaints-but-omits-details","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=40991","title":{"rendered":"CFPB finds record-high student loan complaints, but omits details"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108096271\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>The U.S. Consumer Financial Protection Bureau headquarters in Washington, Feb. 2, 2025.<\/p>\n<p>Bloomberg | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Federal <a href=\"https:\/\/www.cnbc.com\/student-loans\/\">student loan borrowers<\/a> submitted a record number of complaints to the Consumer Financial Protection Bureau from mid-2024 to mid-2025, a recent <a href=\"https:\/\/files.consumerfinance.gov\/f\/documents\/cfpb_pelo-annual-report_2026-01.pdf\" target=\"_blank\">report<\/a> from the bureau shows. <\/p>\n<p>But the government\u2019s 21-page report, published in <a href=\"https:\/\/www.consumerfinance.gov\/data-research\/research-reports\/2025-private-education-loan-ombudsman-report\/\" target=\"_blank\">early January<\/a>, omits details on the nature of borrowers\u2019 complaints \u2014 including the issues they face, the loan servicers involved and the possible remedies available \u2014 that appeared in a 36-page draft of the report obtained by CNBC.<\/p>\n<p>\u201cI was disappointed that the report was not published in its entirety,\u201d said Julia Barnard, a former student loan ombudsman who resigned from the CFPB in October. Barnard, who authored the draft of the report, told CNBC that CFPB leadership\u2019s decision to omit her findings is the reason she parted with the bureau. <\/p>\n<p>\u201cBecause reports like this one are being censored, private parties and the Department of Education have fewer opportunities to correct their failures,\u201d Barnard said. Making less information available to the public limits the agency\u2019s accountability, she said.<\/p>\n<p>The CFPB did not respond to requests for comment from CNBC. In <a href=\"https:\/\/www.politico.com\/news\/2026\/01\/14\/watchdog-agency-scales-back-student-loan-report-00727009\" target=\"_blank\">comments to Politico<\/a> in January, an agency spokesperson described Barnard as a \u201cdisgruntled\u201d former employee and said the draft \u201cdid not address any of the statutory requirements for the report.\u201d<\/p>\n<p>Barnard disputed that account. <\/p>\n<p>\u201cI did exactly what the statute calls for, which is to present a compilation and examination of complaint trends, policy recommendations and a reflection on the activities and effectiveness of the office in the prior year,\u201d she said. <\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<div class=\"group\">\n<ul>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/cfpb-student-loan-complaints.html\">Student loan complaints at record high, CFPB finds, but agency omits details<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/trump-accounts-sign-up-form.html\">Following Super Bowl ad, Trump accounts launch a new sign-up option<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/pslf-public-service-loan-forgiveness-buyback-backlog.html\">Some student loan borrowers wait over a year for public servant debt forgiveness<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/08\/trump-big-beautiful-bill-college-education.html\">Trump\u2019s \u2018big beautiful bill\u2019 may spur the rise of \u2018un-college,\u2019 experts say<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/07\/401k-mullet-quarter-zip-economy.html\">First the quarter zip, now a \u2018401(k) mullet\u2019 \u2014 what trends say about the economy<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/06\/trump-child-tax-credit.html\">How Trump\u2019s child tax credit changes could impact your refund this season<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/unretiring.html\">Some older Americans are \u2018unretiring\u2019 to keep up with cost of living: AARP survey<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/bitcoin-prices-crypto-crash-selloff-investors.html\">Bitcoin sells off amid \u2018crypto winter.\u2019 What investors need to know<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/medicare-advantage-open-enrollment.html\">It\u2019s Medicare Advantage open enrollment: What to know about switching plans<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/super-bowl-ad-trump-accounts.html\">Super Bowl ad featuring Trump accounts to air on Sunday \u2014 here\u2019s a first look<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/04\/student-loan-debt-retirement-savings.html\">Workers with student loan debt have less saved for retirement, Fidelity finds<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/04\/millions-may-drop-aca-coverage-and-raise-health-costs-for-everyone-else.html\">Millions may drop ACA coverage \u2014 and raise health insurance costs for everyone else<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/04\/retirement-savings-lost-and-found.html\">Retirement savings \u2018lost and found\u2019 helps retirees track down old 401(k)s<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/03\/trump-salt-deduction-taxes.html\">Bigger SALT cap may \u2018drive higher refunds,\u2019 tax expert says \u2014 who benefits<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/03\/medicaid-snap-work-requirements-retirement.html\">What new Medicaid, SNAP work requirements mean for older workers<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/02\/trump-accounts.html\">Trump accounts could grow to $50,000 or more, president says. Advisors weigh in<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/best-financial-advisors.html\">CNBC\u2019s Financial Advisor 100: Best financial advisors, top firms ranked<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>More than 42 million Americans hold student loans, and the outstanding debt exceeds\u00a0<a href=\"https:\/\/www.congress.gov\/crs-product\/IF10158#:~:text=Nearly%2043%20million%20individuals%E2%80%94one,portfolio%20now%20exceeds%20%241.6%20trillion.\" target=\"_blank\">$1.6 trillion<\/a>, according to the Congressional Research Service. Student loan borrowers are facing a barrage of changes to <a href=\"https:\/\/www.cnbc.com\/2026\/01\/15\/student-loan-forgiveness-repayment-plan-backlog.html\">the federal lending system<\/a> and difficulty accessing relief programs under the Trump administration. <\/p>\n<p>Congress established the CFPB in 2010 and tasked the watchdog agency with protecting consumers from abuses in the financial marketplace. The Trump administration has <a href=\"https:\/\/www.cnbc.com\/2026\/01\/23\/warren-cfpb-director-letter-undermining-trump-credit-card-affordability.html\">rolled back<\/a> CFPB <a href=\"https:\/\/www.cnbc.com\/2025\/05\/06\/trumps-cfpb-drops-enforcement-of-bnpl-as-consumer-protections-decline.html\">enforcement activity<\/a> and sought to reduce the agency\u2019s <a href=\"https:\/\/www.cnbc.com\/2025\/04\/29\/what-cfpb-cuts-could-mean-for-consumers.html\">staff<\/a> and <a href=\"https:\/\/www.cnbc.com\/2025\/12\/30\/trump-admin-must-fund-cfpb-judge-says.html\">funding<\/a>, although many of those actions have been challenged in court.<\/p>\n<p>\u201cThe decision to quash the pieces of this report most critical of the Trump Education Department and the student loan industry tells a grim story, as millions of borrowers default on their loans and the Trump administration shreds the student loan safety net,\u201d said Mike Pierce, a former senior advisor to the student loan ombudsman at the CFPB and the executive director of Protect Borrowers, an advocacy organization. Pierce has seen both the published report and the draft. <\/p>\n<\/div>\n<h2 id=\"important-to-get-specifics-on-complaints\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>\u2018Important to get specifics on complaints\u2019 <\/h2>\n<div class=\"group\">\n<p>Nadine Chabrier, a senior policy and litigation counsel at the nonprofit Center for Responsible Lending, a nonprofit that advocates for fair lending practices, said it was noticeable how much less robust the bureau\u2019s latest published report was than prior editions. For example, a report issued during President Donald Trump\u2019s first term, in October 2020, was a <a href=\"https:\/\/files.consumerfinance.gov\/f\/documents\/cfpb_annual-report_private-education-loan-ombudsman_2020.pdf\" target=\"_blank\">66-page file<\/a> and included extensive details on the nature of borrowers\u2019 complaints.  <\/p>\n<p>\u201cIt\u2019s important to get specifics on complaints to identify patterns, understand the consequences and develop solutions,\u201d Chabrier said. <\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108256231\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108256231\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000401672\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The curtailed report on the state of student loans comes as more borrowers are falling behind. Around 9 million people are currently in default on their education debt, according to\u00a0<a href=\"https:\/\/protectborrowers.org\/wp-content\/uploads\/2026\/01\/For-Transmittal-01.07.2026-Coalition-Letter-Urging-Secretary-McMahon-to-Halt-Plan-to-Resume-AWG.pdf\" target=\"_blank\">an estimate by Protect Borrowers<\/a>. <\/p>\n<p>Under the Trump administration, hundreds of thousands of student loan borrowers have been waiting \u2014 in some cases, for more than a year \u2014 <a href=\"https:\/\/www.cnbc.com\/2026\/01\/15\/student-loan-forgiveness-repayment-plan-backlog.html\">in a backlog of applications<\/a> to access an affordable repayment plan or the loan forgiveness mandated in their borrowing terms. <\/p>\n<\/div>\n<h2 id=\"student-loan-complaints-are-up-36-cfpb-says\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Student loan complaints are up 36%, CFPB says<\/h2>\n<div class=\"group\">\n<p>The CFPB\u2019s published report indicates it received <a href=\"https:\/\/files.consumerfinance.gov\/f\/documents\/cfpb_pelo-annual-report_2026-01.pdf\" target=\"_blank\">around 18,400 federal student loan complaints<\/a> for the year ending June 30, 2025, a 36% uptick from the previous year. \u201cThis is the highest number of federal student loan complaints received in a one-year period,\u201d according to the published document. <\/p>\n<p>However, the published government report does not include a breakdown of the specific complaints lodged by federal student loan borrowers, which Barnard said she had compiled and which appears in the draft report. She based her analysis on a sample of 5,017 complaints from federal student loan borrowers. <\/p>\n<p>Repayment issues were the top complaint among federal borrowers, accounting for 24% of the reviewed submissions, Barnard found. She found that 15% of the problems cited involved credit reporting issues, and 7% centered on the Public Service Loan Forgiveness program.<\/p>\n<\/div>\n<div class=\"group\">\n<p>According to a recent court filing, more than 800,000 borrowers are <a href=\"https:\/\/www.cnbc.com\/2026\/01\/15\/student-loan-forgiveness-repayment-plan-backlog.html\">awaiting a decision on their applications to access an affordable repayment plan<\/a>. Millions of people have been under pressure to switch out of the Biden administration\u2019s Saving on A Valuable Education, or SAVE, plan after the program was blocked by Republican-led legal challenges.<\/p>\n<p>The court filing shows that applications from an additional 83,370 borrowers for the Public Service Loan Forgiveness Buyback program, which lets borrowers pursuing PSLF <a href=\"https:\/\/www.cnbc.com\/2025\/08\/15\/public-service-loan-forgiveness-buyback-has-a-72730-person-backlog.html\">retroactively pay<\/a>\u00a0for months missed due to forbearance or deferment, also have not been resolved.<\/p>\n<p>\u201cDebtors are literally having trouble making payments,\u201d Barnard said, speaking about the complaints coming into the CFPB. <\/p>\n<p>\u201cThese problems are enormously consequential,\u201d she said. <\/p>\n<\/div>\n<div class=\"group\">\n<p>The CFPB\u2019s published report also does not include\u00a0a breakdown of\u00a0the student loan servicing companies cited in federal borrowers\u2019 complaints, a detail the draft contained. <\/p>\n<p>The published report \u201cglosses over servicing issues,\u201d said higher education expert Mark Kantrowitz.<\/p>\n<p>It also leaves out recommendations for student loan cancellation and information that experts say could have helped borrowers in default get current. <\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/cfpb-student-loan-complaints.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. Consumer Financial Protection Bureau headquarters in Washington, Feb. 2, 2025. Bloomberg | Bloomberg | Getty Images&hellip;\n","protected":false},"author":3,"featured_media":40992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-40991","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40991"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/40992"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}