What should I do if my lender can’t answer my questions?

Who to contact when problems arise

It’s one thing to secure a private student loan, but it’s also important to understand who you’re working with. There are some key behind-the-scenes agencies who play a big part in decisions made on your behalf. They’re the people who insure student loans, help administer the loan program for the U.S. Department of Education, collect payments, answer your questions, and a whole lot more.

Hopefully, you’ll have no problems whatsoever. The application process will go smoothly, you’ll be awarded enough money to cover your post-secondary expenses, and the repayment period will fly by without any problems at all.

In the real world, though, things don’t always run that smoothly. If problems arise, it’s important to understand that it’s probably not the fault of the person answering the phone. Mistakes do happen and if you’re first point of contact isn’t able to help you, it might help to probe a little deeper.

Was there a problem with the guaranty agency? They’re the people who take out insurance on student loans and help administer them through the U.S. Department of Education. What about one of the servicing agencies? Something could be holding things up on that end. The servicing agencies are the people who do the administrative work. They make sure the bills are issued and payments are collected.

Need answers? Ask your lender who the servicing agency is. That agency might just be able to get to the bottom of your problem. You can also visit the Department of Education’s Student Aid on the Web for additional help and resources.