How to Dispute Student Loans: Balances, Terms, & Forgiveness

• Valid reasons to dispute student loans include school closure, false certification, identity theft, and errors in loan terms. Not all disagreements with your loan terms are grounds for a dispute.

• Start the dispute process by identifying your loans, gathering documentation, and contacting your loan servicer or lender in writing. Always keep records of all communications.

• Continue making payments during the dispute process unless your servicer explicitly tells you otherwise. Missing payments can negatively impact your credit score and loan status.

• If your initial dispute is unsuccessful, you can escalate to the lender’s ombudsman, the Federal Student Aid Ombudsman Group (for federal loans), or the Consumer Financial Protection Bureau (for private loans).

You’ve been keeping an eye on your credit report, and something about your student loans doesn’t look right. Maybe the loan amount seems off, or there’s a late payment you don’t remember missing. Whatever the reason, you’re in the right place to learn how to dispute student loans on your credit report.

When we talk about disputing student loans on your credit report, we mean challenging inaccurate information about your loans that appears in your credit history. This could lead to corrections in your credit report, potentially improving your credit score, and ensuring your financial records are accurate.

In this guide, we’ll:

• Explain when you should dispute student loans on your credit report

• Walk you through the steps to file a credit report dispute

• Tell you what to expect after you’ve filed

• Discuss special considerations for federal and private student loans

We’ll keep things simple and explain any tricky terms along the way.

Note: If you’re looking to dispute your student loans themselves (not just how they appear on your credit report), that’s a different process. Check out our guide on [how to dispute your student loans] for help with that.

Ready to learn how to dispute student loans on your credit report? Let’s get started!

Not all student loans can be disputed just because you don’t want to pay them. Here are some valid reasons you might have for disputing your student loans:

1. School closure: Your school closed while you were enrolled or soon after you withdrew.

2. False certification: Your school wrongly said you were eligible for the loan when you weren’t.

3. Identity theft: Someone took out loans in your name without your knowledge.

4. Unpaid refund: You left school early, and it didn’t refund money to your loan servicer as required.

5. Borrower defense: Your school misled you or broke certain laws.

6. Total and permanent disability: You’ve become totally and permanently disabled since taking out the loans.

7. Errors in loan terms: There are mistakes in your loan amount, interest rate, or other key details.

Understanding Common Loan Issues

Beyond these specific reasons, there are several common issues that might lead you to dispute your student loans:

Account Balance Disputes: Your loan balance might be higher than expected due to capitalized interest, collection costs, or income-driven repayment plans. If you believe your balance is incorrect, you’ll need to provide proof of payments to your loan holder.

Default Disputes: If you think your loan was wrongly placed in default, review your responsibilities as a borrower. These include:

• Keeping your contact information up to date

• Making full, on-time monthly payments

• Contacting your loan holder if you’re having trouble making payments

If you’re struggling with payments, you may be eligible for options like deferment or forbearance, which can temporarily pause or reduce your monthly payments. Always explore these options before risking default.

Loan Discharge Reconsiderations: If your discharge application was denied, you can request a reconsideration. You may need to provide additional documentation to support your eligibility. This process applies to various discharge types, including some forms of student loan forgiveness.

Identity Theft Claims: If you believe you’re a victim of identity theft, you’ll need to provide:

• A court judgment identifying you as a victim

• A copy of a government-issued photo ID

• A notarized statement describing how the identity theft relates to your student loans

You should also check your reports with credit reporting agencies like Equifax and TransUnion for any inaccurate information related to fraudulent loans.

Treasury Offset Reviews: If the government plans to withhold money from your federal payments, such as tax refunds or Social Security benefits, to collect on defaulted loans, you have the right to request a review.

Wage Garnishment Hearings: If you’ve been notified of proposed wage garnishment, you can request a hearing to dispute it.

When you’re ready to dispute your student loans, follow these steps:

1. Identify your loans: Check StudentAid.gov for federal loans, including Direct Loans. For private loans, review your credit report. Common private lenders include Sallie Mae, Discover, SoFi, Earnest, and Citizens Bank.

2. Gather your documents: Collect all paperwork related to your loans and any evidence supporting your dispute reason. This may include your financial aid records, loan agreements, and correspondence with your loan servicer.

3. Contact your servicer or lender in writing: Email your servicer for federal loans (found on StudentAid.gov) or your lender’s customer service for private loans. Keep your message clear, polite, and brief. Request a written response for your records. For federal loans, you can also submit a complaint to the Ombudsman.

4. Wait for a response: Most lenders respond within two weeks, but complex issues may take up to a month.

5. Escalate if necessary: If unsatisfied, contact the lender’s ombudsman or expedited customer service. Include copies of your previous correspondence.

6. Consider federal resources: For federal loans, contact the FSA Ombudsman if still unresolved. Use their online portal, mail, or phone.

Many disputes arise from misunderstandings. Clear communication is key. Keep making payments unless your servicer or lender tells you otherwise. Missing student loan payments will hurt your credit score — especially for private student loans. And if the loan falls out of good standing and into default, you and your cosigner

When you’re ready to contact your loan servicer or lender, use this template as a guide. Keep your email clear, polite, and to the point.

Sample Dispute Letter

Subject: Dispute Regarding [Your Loan Account Number]

Dear [Loan Servicer/Lender Name],

My name is [Your Name], and I’m writing to dispute an issue with my student loan account [Your Loan Account Number].

The specific problem I’m experiencing is: [Briefly describe the issue. For example: “There’s an error in my loan balance” or “I believe I qualify for loan forgiveness, but my application was denied.”]

Here are the relevant details:

• [List 2-3 key facts about your situation]

• [Include dates, amounts, or other specific information]

• [Mention any previous attempts to resolve this issue]

I’ve attached the following documents to support my dispute:

• [List any documents you’re including, like billing statements or correspondence]

To resolve this issue, I’m requesting that you: [Clearly state what you want them to do]

Please investigate this matter and provide a written response within 30 days. If you need any additional information from me, please let me know.

Thank you for your attention to this matter.

Sincerely, [Your Name] [Your Contact Information]

Tips for using this template:

1. Customize it to fit your specific situation.

2. Be factual and avoid emotional language.

3. Proofread your letter or email before sending.

4. Keep a copy of the email for your records.

5. Follow up if you don’t receive a response within 30 days.

Once you’ve sent your dispute email, here’s what you can expect:

1. You’ll likely receive an automated response confirming they’ve received your dispute. Save this for your records.

2. Loan servicers typically have 30 days to investigate and respond to your dispute, though complex issues may take longer.

3. There are several possible outcomes to your dispute. Your dispute might be accepted and changes made to your account, your servicer might request more information, or your dispute could be denied with an explanation.

4. While you wait, continue making payments unless explicitly told otherwise. Keep all documents related to your loans and the dispute, and avoid sending multiple follow-up emails unless the 30-day period has passed.

5. If you don’t get a response after 30 days, follow up with a polite email or phone call referencing your original dispute.

Related: Navient School Misconduct Discharge Application

If you’re not satisfied with the response to your initial dispute, don’t give up. Here are your next steps:

1. Review the lender or student loan servicer’s final response carefully to ensure you haven’t missed any important information or explanations.

2. If you still believe your dispute is valid, contact your lender’s ombudsman or office of consumer advocacy. You can usually find this information on the lender’s website or by calling their customer service.

3. For federal student loans, there is an Ombudsman Group dedicated to helping resolve disputes related to the federal student aid programs, including Direct Loans, Federal Family Education Loan (FFEL) Program loans, Perkins Loans, and grant programs. You can file a complaint through the Online Feedback System if your efforts to resolve the issue with your servicer have failed. You can also call 877-557-2575 to file a complaint.

4. If you have private student loans, submit a complaint through CFPB’s online complaint system or by calling 855-411-2372. They can help mediate between you and your lender.

5. Keep detailed records of all communications, including dates, names of representatives, and summaries of conversations.

6. If your dispute involves a significant amount of money or a complex legal issue, consider consulting with a student loan attorney or financial advisor.

When disputing student loans, the process can vary depending on whether you have federal or private loans. Here are the main differences:

1. Federal loans have more formal dispute processes and forgiveness options available through the Department of Education.

2. Private loans typically have fewer dispute options and are generally bound by the terms of your loan agreement.

3. For federal loans, you can use the Federal Student Aid Ombudsman Group as a last resort. Private loans don’t have this option.

4. Federal loan disputes often have standardized forms and procedures. Private loan disputes may vary by lender.

5. Income-driven repayment plans and some forgiveness programs are only available for federal loans, not private loans.

6. The CFPB can help with both federal and private loan disputes, but they have more oversight over private lenders.

7. Statutes of limitations don’t apply to federal student loans but do apply to private loans.

Disputing student loans can be a complex process, but you don’t have to navigate it alone.

If you’re considering disputing your student loans or need guidance on your specific situation, we’re here to help. Book a one-on-one consultation with one of our experienced attorneys to get personalized advice and support.

While our consultations are paid, the expertise and peace of mind you’ll gain can be invaluable in your journey to resolve your student loan issues.

Don’t let loan disputes overwhelm you – let’s tackle them together.