If You Found an Error in Your Student Loan Bill, Here’s What to Do Next | Student Loans and Advice

Federal student loan payments recently resumed after a three-year hiatus, but they’re off to a rough start. Many borrowers received incorrect loan balances, and over 800,000 were delinquent on their payments due to untimely billing statements.

Student loan repayments are already a source of stress for many borrowers, and unforeseen errors only add to the issue. Fortunately, you can take steps to resolve the situation if you find a mistake on your student loan bill.

The impact of an inaccurate student loan bill can vary depending on your loan type and the severity of the error. “Errors on the student loan bill can have a negative impact on a borrower,” says Stacey MacPhetres, senior director of education finance at EdAssist by Bright Horizons. “They could be charged unpaid interest if they’re enrolled in a SAVE plan, which would increase their overall debt.”

Even a minor error on your student loan bill can lead to serious financial consequences. For example, if your interest is miscalculated and you don’t catch it, you’ll end up paying more over the life of the loan.

Or if an incorrect due date causes you to miss your monthly payment, this can cause your credit score to drop. If you’re enrolled in a loan forgiveness program, like Public Service Loan Forgiveness, an error could threaten your forgiveness eligibility.

As a student loan borrower, the best way to protect yourself is by spotting errors early. According to LeAndra Ross, a regional director with AccessLex, these are some of the most common problems you can expect to encounter:

The best way to spot errors on your student loan bill is by reading your statements and tracking your accounts regularly. “Borrowers should carefully check for changes or errors to their student loan servicing account, which can be accessed online,” says MacPhetres.

Start by verifying which repayment plan you’re enrolled in. You can find this information by logging into your Department of Education account. Fixed repayment plans include the Standard Repayment Plan, the Graduated Repayment Plan and the Extended Repayment Plan. It’s important to note that if you didn’t pick a repayment plan, your loan servicer will have placed you on the Standard Repayment Plan, which could result in a higher monthly payment).

Income-driven repayment plans are based on how much money you make and the size of your family. IDR plans include the Saving on a Valuable Education Plan, the Pay As You Earn Repayment Plan, the Income-Based Repayment Plan and the Income-Contingent Repayment Plan.

“Many income-driven repayment plans may not require payments for borrowers with qualifying income,” says MacPhetres. “Borrowers with $0 or low payments under the SAVE plan should check to make sure their servicer is not adding on unpaid interest each month.”

Review your information to ensure the correct income data is used to calculate your monthly payments. If you believe your payments are being calculated inaccurately, you can contact your servicer and ask it to fix the mistake.

If you find an error on your student loan bill, reach out to your loan servicer immediately and ask the servicer to fix it. But the issue may not get resolved right away, so it’s important to manage your expectations.

“Call wait times to speak to the loan servicer can be lengthy, especially for federal student loans given the recent resumption of loan repayment for millions of borrowers,” says Ross. She recommends using other forms of communication, like emailing your servicer and using online chat features.

In the meantime, continue to monitor your credit reports so you have an accurate log of your accounts and their statuses. And keeping an eye on your credit report will help you spot future errors. You can request a free copy of your report from the three major credit bureaus at annualcreditreport.com.