Difficulties in getting help from student loan servicers and transcript withholding by colleges and universities to collect a debt or disputed fees are among the financial challenges being faced by servicemembers, the federal consumer financial protection agency said in a report Tuesday.
The report, the 2023 version of its annual account of financial concerns facing servicemembers, veterans and military families, also asserted those groups are facing increasing reports of scams targeting older veterans.
The Consumer Financial Protection Bureau (CFPB) said in its report (Office of Servicemember Affairs 2023 Annual Report) that last year the covered groups submitted nearly 84,600 complaints to the CFPB, up 27% from 2022 98% from 2021.
“The number of complaints filed by servicemembers increased across all major consumer financial products, including credit or consumer reporting, debt collection, credit cards, checking or savings accounts, and mortgages,” the CFPB said.
The report notes that, after a three-year pause, payments for federally owned student loans restarted in October 2023. “The return to repayment was followed by an increase in student loan complaints from many consumers, including servicemembers,” the agency said. “For some servicemembers, particularly those stationed abroad or deployed, these challenges were exacerbated.”
The bureau said those aggravated tests include:
- Servicemembers, military families, and veterans report challenges when trying to contact or get help from their student loan servicer.
- Servicemembers reported servicing errors preventing enrollment in income-driven repayment (IDR) plans.
- Withholding of transcripts by colleges and universities may prevent servicemembers and veterans from receiving promotions, securing employment, or completing their degrees.
CFPB Report Highlights Challenges Facing Servicemembers and Veterans with Student Loans