Complaints over private student loans center on servicing- CFPB

The CFPB noted similarities between complaints leveled against private student lenders and those leveled against mortgage lenders. In both cases, most loans are managed by a servicer who functions between the customer and the actual lender. This arrangement makes it more difficult for the customer to interact with the lender, especially in situations where the borrower is seeking a change in the loan terms. Compounding the situation, the servicer generally considers its customer to be the lender, not the borrower.''