Legal Protections Remain for Student Loan Borrowers
The DC Department of Insurance, Securities and Banking wants student loan borrowers to know that repayment obligations and consumer protections remain in full effect, regardless of recent structural changes at the U.S. Department of Education (ED). The federal student loan portfolio continues to be administered by ED’s Office of Federal Student Aid (FSA).
Student loan borrowers are still required to repay their loans in accordance with the terms of their loan agreements. These administrative changes do not alter the legal protections afforded to borrowers under federal and District law.
Alternative Repayment Plans & Forgiveness
Borrowers continue to have access to alternative repayment options. Borrowers can explore their repayment options, including income-driven repayment (IDR) plans, using the Department of Education’s Loan Simulator. You can apply for an IDR plan online or submit a paper application to your loan servicer.
In addition, federal loan forgiveness and discharge programs remain available. These include Public Service Loan Forgiveness (PSLF), Income-Driven Repayment (IDR) Forgiveness, Borrower Defense to Repayment (BDR) for school misconduct, and the Total and Permanent Disability (TPD) discharge program. These programs are established by federal statute and remain in effect. Repayment options, loan forgiveness and discharge programs are subject to change without prior notice. DISB encourages borrowers to contact the SLO for the latest information.
Legal Protections
Student loan borrowers are also protected under District law. Borrowers have the right to receive prompt, accurate, and complete information about their loans. Student loan servicers operating in the District must acknowledge written inquiries within 10 business days and respond within 30 business days. Servicers are prohibited from furnishing inaccurate credit reporting information and must provide fair, accurate, and lawful customer service.
File a Complaint
Borrowers who experience issues with their student loan servicer or believe their rights have been violated are encouraged to file a complaint with DISB. The Student Loan Ombudsman is available to assist District residents. If you have concerns regarding your student loans, you can file a complaint here or you can reach out to the DISB Student Loan Ombudsman at 202.727.8000 or [email protected].
DISB Mission
Our mission is three-fold: (1) cultivate a regulatory environment that protects consumers and attracts and retains financial services firms to the District; (2) empower and educate residents on financial matters; and (3) provide financing for District small businesses.