Snapshot of nationwide student debt in US
Students owe more than $1.4 trillion in repayments.
One of the principal outlets for young people with complaints regarding student loans is the Consumer Finance Protection Bureau (CFPB), handling tens of thousands of complaints about hundreds of companies each year.
Between July 2011 and August 2017 the CFPB tackled more than 50,700 private and federal student loan complaints, plus almost 10,000 student debt collection complaints, taking action to assist those aggrieved.
In the last year alone, the CFPB received over 20,000 complaints about a variety of loan servicing issues.
A recent report found the CFPB’s actions have resulted in automatic student loan interest-rate reductions for eligible service members, greater protections around federal student loan payment relief, and the elimination of surprise “auto defaults” from most new private student loans, yielding $750 million in relief over six years.
Now, the CFPB has released findings from a comprehensive 50 state snapshot of student debt, which takes a closer look at nationwide student loan debts, which collectively adds up to more than $1.4 trillion.
The CFPB’s in-depth report details complaints handled by the CFPB from student loan borrowers in every state.
For example, in the state of Virginia, the total outstanding student loan debt balance as of 2016 was $36.57 billion. 1,552 complaints were handled by the CFPB in 2016/17, up three-fifths (61%) year-over-year.
290 complaints were related to student loan debt collection in 2016/17, down one quarter (-24%) year-on-year.
Comparatively, North Carolina has a total outstanding student loan debt balance similar to Virginia at $38.19 billion, with the CFPB handling a comparable 1,356 complaints in 2016/17, up 170% on 2015/16.
304 complaints were related to student loan debt collection in 2016/17, up 74% year-on-year.
Late last year, a report released by the CFPB raised concerns about costly fees and risky features that can be attached to some college-sponsored accounts, resulting in hundreds of dollars worth of charges per year.
Many American colleges offer sponsored bank accounts for students, but being able to compare campus-approved accounts against regular banks and other educational institutions had been difficult, until recently.
Take a look at the CFPB’s 50 state snapshot of student debt to compare your state’s performance.