How to get good information from your student loan servicer

Michael Lux Blog, Student Loans 0 Comments

Conversations with student loan servicers are high stakes.  Signing up for the wrong repayment plan could cost you thousands in the long run.  Thinking you are eligible for a program when you really are not could cost you tens of thousands.  Getting quality information about your student loans is critical.

Unfortunately for borrowers, these conversations are not nearly as critical to the people on the other side of the phone.  Loan servicers receive little oversight and have almost no incentive to invest the money necessary to provide high quality service.  As a result, the customer service representative on the other end of the phone may be poorly trained and offer you bad information.

Despite the issues with federal student loan servicers, borrowers still depend upon them for getting accurate information for their financial planning.  The good news is that there are some really good customer service representatives who are knowledgable and actually care about doing a good job.  The trick is getting to talk to one.

Try these six tips to make sure you are getting accurate information.

Tip #1: Do you research ahead of time.

There is no substitute for doing your homework.  Student loans can be tricky.  Each time you think you have something figured out, it seems like there is another exception that applies.

The key to the research isn’t to answer all of your questions, it is to get as much information as possible.  The more knowledgable you are before starting your call with your loan servicer, the better off you will be when the conversation starts.

Tip #2: Ask questions when you already know the answer.

If you are able to ask a couple difficult questions to your loan servicer, you can evaluate their knowledge level based upon their response.  If you get an answer you know to be wrong, it is time to end the call immediately.  Nothing is worse than dealing with someone who will make up answers just to get through the phone call.

The more thorough someone is with their answers, the better off you will be.  If they give you good responses to questions that you already know the answers to, you can be more confident that the information you get will be good when you truly don’t know the answer.

Tip #3: I don’t know is an acceptable answer.

If you ask a question and the loan servicer doesn’t immediately know the answer, don’t be alarmed with a response of “I don’t know.”  In fact, this is a great answer.  It means that they are willing to admit the limitations in their knowledge and not willing to just make up an answer.  An “I don’t know” is an honest response and not something that should be of great concern to you.

Tip #4: Call back until you get someone helpful.

Most loan servicers use large call centers.  While waiting on hold for a second or third time can be extremely frustrating, it is better than living with bad advice.  Going this route takes patience, but it is a necessity if you realize that you are not getting good information.

Tip #5: Don’t be a jerk on the phone.

Dealing with student loan sucks.  Dealing with your loan servicer is miserable.  The desire to lash out towards a representative of the company is understandable… but don’t do it.  Getting angry or short-tempered on the phone will not help your situation.  If you want actual help, your best bet is convincing the person on the other end of the phone to want to help you.

If you do start to get angry, remind yourself about how difficult the average customer service representative has things.  They get lousy training, for a low wage, and have to help angry people all day long.  If you try to be a bright spot in their day, they might just end up giving you the help you need.

Tip #6: Make the most of the good representatives.

If you find someone really helpful, take advantage of the situation.  If you can get direct contact to that individual, via phone or email, go for it.  Waiting a little longer to speak to someone who is good is well worth your time.

Even if you can’t get direct contact to that person, get the most out of the one call.  Ask any question that comes to mind.  Take great notes on what you learn.  Ask questions until you are convinced that you understand everything.

Bottom Line

Getting good advice from your student loan servicer isn’t an easy task, but it is critical and it can be done.