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Consumer Complaints

BBB Accredited Business since 04/16/2015

Student Loan Finance Corporation

Phone: (605) 622-4400

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Customer Complaints Summary

23 complaints closed with BBB in last 3 years | 1 closed in last 12 months
Complaint TypeTotal Closed Complaints
Billing / Collection Issues5
Delivery Issues1
Guarantee / Warranty Issues1
Problems with Product / Service16
Advertising / Sales Issues0
Total Closed Complaints23

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (23)
05/27/2014Billing / Collection Issues | Read Complaint Details
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Complaint
This company effectively charges a prepayment penalty due to their billing practices. They charge extra to make additional principal payments.
My wife is trying to pay down her student loans that SLFC recently acquired. We signed up for autopay which lowered our interest rate. However, depending upon monthly expenses we try to pay extra on the loan to help pay it down. Since this amount can vary, we cannot make it part of the auto-payment. The first problem is they do not have a one-time electronic checking account debit option. The only electronic option they have (other than autopay) is to use a credit card which we have done in the past and then pay the credit card. The final option is to pay through the mail with a check. When we went to pay with the credit card last week, they wanted to charge a $**** processing fee. I understand there is a fee for them to process transactions electronically. Typically, it is about a 3% cost for a large vendor such as SLFC which our extra payments are around $****** which would cost them approx $****. Not only are they making money on the interest but on the transaction as well. We sent a check instead but I'm effectively still paying extra because the over the time it takes to deliver the mail, the loan will still accrue interest (not including some cost for the stamp). While relatively insignificant for one payment, over the course of the payment period this will amount to over $****** or more in additonal charges which I see as a way around prepayment penalty rules. In addition, it discourages myself and others to pay off or pay down their student loan debt. In a day and age where student loans are difficult to repay, it seems ridiculous that they want to charge an extra fee or make it more difficult to pay them down quicker.

Desired Settlement
Take away the $**** processing fee, offer a one-time checking account debit as a payment option and stop gouging a demographic that is struggling to repay its debts.

Business Response
BBB Complaint
***** *******
ID ***********

On *******, Student Loan Finance Corporation received a complaint from XXXX XXXXXXX, the spouse of a borrower, via the Better Business Bureau. SLFC has not had any contact with XXXX XXXXXXX or the borrower since the account transferred to SLFC for servicing on *******.

We understand the need to provide more no cost options for the customers to make payments. SLFC offers options to remit payment at no cost including; bill pay, automatic payment, and the mail.

SLFC had been working on providing more options. On *******, SLFC also implemented an additional free option to make a one-time online payment using a checking or savings account at www.slfc.com which is what the customer was asking for.

In order to continue to offer many options to the consumer to make payments, SLFC charges a fee of $**** to remit payment via credit or debit card to help offset the cost of providing the service.
Remittance of payment through the mail does not constitute a prepayment penalty for a loan. The entire payment of $****** was applied to the principal balance of the loan as the borrower requested.

We would invite and encourage XXXX to call SLFC with any further questions.

02/03/2014Guarantee / Warranty Issues | Read Complaint Details
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Complaint
This company is not returning my voicemail's requesting my account information to set up monthly payments on my student loans.
My private student loan was being serviced by *** and I had monthly payments set up to be automatically debited from my checking account each month. Every thing was going fine and then one day I received a letter saying that my loan had been transferred to Student Loan Finance Corporation and that in order to continue making schedule payments I would have to go online and set this up. I tried to go online and do this and was unable to log in because I didn't have the correct log in information. The web site prompted me to contact SLFC to receive my log in information. I have left 4 voicemail's on my "Account Managers" phone asking her to contact me so that I can sign up for direct payments. It's been 13 days and I have yet to hear from the company. All I want is to know my account information so I can set up automatic payments, but I am not able to talk to a human at this company. Very frustrating.

ADDITIONAL DETAILS:
Case is being handled by another organization: Consumer Financial Protection Bureau

Desired Settlement
I am simply requesting that a human from the company call me either at work or on my cell phone to provide me my account details so I can go online and set up automatic monthly payments for my private student loan.

Business Response
On ******* SLFC received a voicemail from the customer requesting assistance with the website. We returned the call, but were unable to leave a message. Student Loan Finance Corporation received notification of the complaint filed with the BBB on *********. On *********, we spoke with the customer and assisted him with login to the website and advised how to set up automatic payments. We encouraged him to contact us with any other concerns and he agreed.

01/09/2014Problems with Product / Service | Read Complaint Details
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Complaint
2 of my student loans were transferred from *** in *************. I have been unable to log in to their website to make payments, and am now past due.
I have contacted SLFC on *****, ***, ***, and other times via phone, and twice via their online contact form. I needed my information updated in order to log into their website to pay my loan. They updated my info in ******** but told me their website was "down" and not working for some people, and to continue to try to log in with my correct information via the "forgot my password" feature. I have done so 3x a week since mid-******** and it is still not working. I am only able to leave a voicemail for my account rep (****** ********), and her voicemail states it takes at least a week to return calls, which I have not even found that timeline to be true. I am concerned about the impact on my credit score given the past due status. There is a chance my payment amount has gone up, which I cannot check because I cannot log in. They sent a payment packet via US mail to the incorrect address (my parents), which was thrown away, despite my request to update my address ASAP. Calls and emails are not returned, and I have tried to call at all times of day. I have to believe there are many others in my situation.

Desired Settlement
Response from the company and successful log-in to their website to be able to make regular payments on my student loan.

Business Response
SLFC received a complaint via the BBB from ****** ****** on ******. On ******, we spoke with ****** regarding her loans that were recently transferred from *** to SLFC. We updated all her demographic information and reset her online web password. She successfully accessed her online web account. We advised ****** that there were no late fees assessed or any negative credit reporting. We apologized for our delayed response.

01/02/2014Problems with Product / Service | Read Complaint Details
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Complaint
ABSOLUTELY NO CUSTOMER SERVICE
My student loan from *** has recently transferred to SLFC. I cannot login to their website so I have made several phone calls, left 3 messages & sent an email...I have yet to receive any response. There phone system is all automated and no matter which route I take I end up at the same voicemail. I do not want to receive bad credit due to the fact that I have no idea the minimum payment on my account.

Desired Settlement
CONTACT ME ASAP

Business Response
On ********, Student Loan Finance Corporation received a complaint from ******* ******* via the Better Business Bureau. On ********, SLFC spoke with ******* regarding her loan that was transferred from ***. We were able to explain and answer all her questions that she had on her account. We apologized for the delay in responding. We assisted her with her access to her online web account.

12/18/2013Problems with Product / Service | Read Complaint Details
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Complaint
Unable to contact company to resolve loan/billing issues.
I recently had a student loan get transferred to this company (not per my request). I have tried 9 times to call/leave voice mails/emails and cannot get anyone to answer a phone and/or respond to me. I need to talk with them to figure out the billing on my loan in a timely manner so that I do not have a late payment. Right now I have no idea of the monthly installment rate and no idea of who to send it to. This company the way they are operating seems like a fruadulent business.

Desired Settlement
I request they contact me and provide customer service when I need it in the future. I request my loan go back to the company it was with for these reasons.

Business Response
On ********, Student Loan Finance Corporation received a complaint from ***** ***** via the Better Business Bureau. We spoke with ***** that day and provided him balances, payment options, payment methods and verified account information. SLFC and ***** are in agreement on account status. On ********, ***** successfully logged into his online account and set up automatic payments.

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12/12/2014Problems with Product / Service | Read Complaint Details
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Complaint
On ********, I applied for a student loan consolidation. I received an email stating that within 3 business day, have not heard anything.
On ********, I applied for a student loan consolidation. I received an email reply stating that I would be contacted within 3 business days for next steps. I have not had any replies from the company. On ********, I called and spoke with an agent who couldn't give me information on my consolidation request. He simply said "soon" someone will email me. I asked him what that time frame meant, he said he wasn't sure just "soon." He advised that I call back on ******** to check the status. I attempted to call and I was on hold for over 30 minutes with no replies. I provided personal financial information online to this company and they haven't replied or been able to answer my inquiries.

Desired Settlement
I would like them to delete my request and remove any credit bureau inquiries for failing to meet their service level agreement of contacting me within 3 days for next steps. Also, when I called they were unable to assist me, so again, I do not wish to do business with this company and requesting all files to be deleted and any bureau inquiries.

Business Response
On ***************** the applicant applied for a student loan consolidation. Upon submitting the application, a notification was provided to the applicant that they would receive an email response within 3 business days. On ******** the applicant called and spoke with a representative, at which time he provided answers to her questions regarding payment estimates. The representative wasn't able to determine the status of the application and advised her to follow up in 3 days. The applicant called on ******** for an update. When the applicant contacted SLFC, she was routed to a phone queue awaiting the next available representative. The phone system provides the caller with an option to either leave a message or continue to hold. An option is given periodically while the caller is on hold. The applicant continued to hold for 20 minutes before disconnecting the call. No message was left.

On ***************** the complaint was received from the BBB. On **********, the team leader left a voicemail message for the applicant. On ******** the applicant returned the call and spoke with the team leader. The team leader provided her the status of her loan application. The applicant was advised that a training issue was identified and the applicant had the option to work directly with the team lead, if she wanted to continue with the application process. The team leader apologized for the training issue and wait time. The team leader advised her we are researching the reason for the hold. The team leader advised the applicant that we are unable to remove the inquiry from her credit report, as she requested. The team leader explained the applicant consented to the pull and at that time was interested in applying for the loan. The applicant was satisfied with the conversation. The applicant will contact SLFC if she decides to continue with the application process.


09/22/2014Billing / Collection Issues | Read Complaint Details
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Complaint
Unknown late fee penalty charges, and auto bill pay amount taken without consent.
********* I started making payments on **************. I was unaware and not notified of this loan for a whole year. In that year I had accrued a $****** collection fee. After discussion with agent, she would not help out with this collection fee at all, despite the fact that I was out of the country for 2 years and unaware of this loan. ********* is when I started making auto bill payments of $*** monthly, in which I have been making ******* to *******. Then most recently *******, without my consent or notification $****** was automatically withdrawn from my account making me go negative. When I called *********** for an explanation it was revealed to me that the $*** payment was a plan I was enrolled in for a only certain amount of time, in which I was also not informed of. The representative also told me that the $*** was only going towards fees and interest, and that the $****** would go towards some principal. As I go online to check, surely, the whole amount of $****** was not going towards principal at all. It was still only going to collection fees and interest. Lastly, my auto bill pay is set up to pay exactly on time every month, but as I just realized through examining the payment history. I have been getting charged late fees every single month. This just seems to not be correct. Its as if the company is purposely giving me ill advise so I can screw up everything, so they can continue to collect unethical fees from me.

Desired Settlement
I wish to resolve and negotiate on the $****** collection fee that was forced upon me. Concerning my situation at the time, I only wish for the company to understand and work with me, so that I would feel comfortable about making my monthly payments. I also want a clear understanding on where my payments are going. The company claims, a portion is going to principal but their website states differently. Ultimately, I need to lower my payments and still be able to pay off my loan in a timely manner.

Business Response
On *********, Student Loan Finance Corporation received a complaint from xxx xxxx via the Better Business Bureau. He states that there were unknown late charges and an auto bill pay amount taken without consent. He also states that on *********, he started making payments. He says, in that year, he had accrued a $****** collection fee. He says that SLFC is not willing to work with him on the collection fee despite the fact he was out of the country for 2 years and unaware of this loan.

There were 5 disbursements totaling $*********. The dates of the disbursements were **********, ********, **********, **********, and *********.

On **********, the loan transferred from SLFC to *** for servicing. During that time, *** spoke with the cosigner on the account regarding the delinquency and made many attempts to reach XXX without success. In addition, delinquency notices were sent to both the borrower and cosigner. Because of the delinquency on the account, the loan transferred back to SLFC from *** for servicing on ********. When the loan transferred back to SLFC, SLFC continued to try to reach the borrower by phone and sent requests via mail to contact our office. SLFC was also unable to speak with XXX.

On **********, **********, *********, and ********* SLFC spoke with the cosigner. Each time we spoke with the cosigner, they advised that XXX was in *****. The cosigner indicated they did not have location information for XXX and they would not make payment arrangements to resolve the delinquency. Upon notification the borrower was living in *****, SLFC utilized skip tracing to attempt to locate the borrower.

On *********, the account defaulted. In accordance with the terms of the promissory note, a default fee of up to **% of the principal balance is assessed to the account upon default. On ******* the default fee was assessed.

On ********, SLFC received a voicemail from the borrower. The borrower advised SLFC they have been living out of the country for 2 years. The borrower understood that they had a student loan with our office. The borrower indicated the best way to communicate with him was via e-mail.

On ********, SLFC sent an e-mail to the borrower explaining the details of the account including the collection fee. On ********, we received an e-mail from the borrower inquiring about the details and why the collection fees were so high. The borrower also wanted the password reset so he could access his online account.

On ********, SLFC responded to his email explaining the balance, payoff, and collection fees. We also let the borrower know that we reset the online password to access the account.

On *********, SLFC received confirmation that the borrower was able to access his online account.

On *********, SLFC received an e-mail from the borrower that they were going to make a $*** payment. The borrower questioned if something can be done in regards to the collection fees. SLFC advised the borrower once the loan is current, one-half of the collection fees could be waived. The loan was never brought current.

On ********, SLFC received an e-mail from the borrower stating that he will be back in the United States the end of **********. He stated he will continue to make payments but is not sure when will be able to bring his loan current.

On ********, the borrower e-mailed SLFC regarding a compromise settlement on the account. SLFC offered the borrower a settlement at a reduced dollar amount. The borrower e-mailed SLFC on ******** indicating he was unable to do the settlement.

On *********, XXX contacted SLFC and agreed to monthly payments on the loan. The borrower set up an automatic payment deduction on **********.

On *******, a letter was sent to the borrower notifying them that the automatic payments would be increased. The increase was due to the graduated repayment plan the borrower chose.

On *********, the borrower called SLFC. He asked about the increase in the automatic payments. SLFC advised the borrower that the lower payments on the graduated repayment plan had been made and the payments were moving to the next level of the plan. The borrower stated they could not afford the higher payments. The borrower wanted the automatic payments deleted. On *******, per his request, SLFC deleted the automatic payments. On ******* SLFC received the BBB complaint from XXX.

On ******, SLFC left a voicemail messages for the borrower to contact SLFC. On ****** a voicemail message was left and an email was sent to the borrower requesting contact. SLFC has not received a return call or email response yet from the borrower. We would invite and encourage XXX to contact SLFC with any further questions.


03/03/2014Delivery Issues | Read Complaint Details
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Complaint
I satisfied responses to inquiry of tax formed that should be mailed by ********* for filing that purposes.
I have requested a response from the rep when my tax paperwork will be sent since my school has been accredited as of ****. I did not received a response from my rep. So I sent a customer service email complaint which I did not get a response until a week later. I was notified last week that the document of interest paid for tax purpose was mailed out and emailed to my account as of **********. I called after a couple of days to let them know I have not received either and to send a copy to my personal email. As of today, I received a message from *******, that I should call my rep ***** at her number for further service. I feel like j am not getting the service I'm am paying for and I believe that's its against the law from getting my documentation on time to file for my taxes.

Desired Settlement
I want my tax form so that I may file my taxes immediately

Business Response
On *******, SLFC received a complaint from xxxxxx. SLFC spoke with xxxxxx on ******* and explained the ***** tax form. Since her school is not a Title IV school, she wouldn't receive a tax form. SLFC advised this information is per US Dept of Education website. XXXXXX requested a different account manager. SLFC accommodated her request and gave her the contact information for her new account manager. XXXXXX had no other questions. We encourage her to contact SLFC with any other concerns.

02/24/2014Problems with Product / Service | Read Complaint Details
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Complaint
No past payments sent out.
My account was transferred from another company without my knowledge. Now I am trying to get a copy of all the payments made and they still haven't sent it to me. I have been paying on my loan since **** and they say I still owe ******* dollars. And they said it would take another 8 years to pay it off. The original amount was ****** dollars how could it be after paying for that many years I still owe that much. I keep asking them for a breakdown of all my payments I made and they still have not sent it to me. I keep calling and cannot get a hold of anybody. Please can you help me. I do not think after 9 years of paying that I still owe that much.

Desired Settlement
I would like to get to the bottom of this I would like them to show me all the payments I had made.I know I have paid way to much. But if I do not pay they are going to take away my ************** and take me to court.

Business Response
On ****** SLFC received a voicemail from XXXXX requesting a call back regarding automatic payment. The account manager returned the call, and left a message. On ****** XXXXX set up automatic withdrawal on our website. On ******* SLFC received an email from XXXXX with a question regarding credit reporting. The account manager responded to the email on *******. On ******* SLFC receive an email from XXXXX requesting a payment history. SLFC mailed the payment history on *******. Student Loan Finance Corporation received notification of the complaint filed with the BBB on ********. SLFC called XXXX and left a voicemail message on ******. SLFC received a voicemail from XXXX on ****** and returned the call during the hours XXXX requested and left a voicemail message. SLFC has left subsequent messages on ****** and ******* with no returned call from XXXXX. We encourage XXXXX to contact us with any other concerns.

01/20/2014Problems with Product / Service | Read Complaint Details
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Complaint
SLFC has displayed extremely poor communication and customer service with regard to loans transferring from ***.
Upon attempting to pay my ******** student loan payment, the online system said simply "Your loan is no longer here." I had to call customer service to find out where my loan had transferred, as I'd received absolutely zero communication regarding this change. I contacted Student Loan Finance Corporation (the new loan servicer) and was told that I'd be receiving a letter detailing the change and that my loan payment would not be due. More than a week later, I finally received this letter, but it stated that the forbearance I'd requested had been granted. I'd requested no such forbearance. Next, I received a notice that reflected three loans, rather than the two I have, and the payments had gone from approximately $*** to close to $***. I have been calling SLFC every single day since, leaving voicemails on two different phone lines, with no response. This is completely unacceptable, and also indicates that potentially thousands of customers are trying to contact them regarding the unexplained changes and receiving no response back after several days.

Desired Settlement
Someone needs to contact Student Loan Finance Corporation to let them know that their practices are unacceptable. Not only are they sending poor or no communication on key loan terms, they are refusing to return customer phone calls. My loan is due on ********** and I can't afford to pay the new rate. I need to speak to someone to work out a more reasonable payment, as I can't build a more than 300% increase (an increase that has gone completely unexplained) into my budget. I find it to be highly disturbing that this has all taken place, and SLFC loses my trust and credibility every day that my many phone calls go unreturned. I'm confident that many, many other customers are experiencing this same issue (and flooding SLFC's offices with calls) so please, someone with the BBB, do something to help.

Business Response
SLFC received a complaint via the Better Business Bureau from ********* ******** on ********. On ********, SLFC personnel spoke with ********* and agreed to investigate the increase in the payment amount. On ********, SLFC recalculated and re-disclosed her loan terms and set her payments up in a graduated repayment plan like she had at ***. We sent updated disclosures and letters on that day. We received a voicemail from ********* on ****** and returned her call that day, leaving a message for her to return our call. If ********* has further concerns she would like to discuss, we encourage her to email SLFC Loan Servicing Manager at ************** who will promptly contact her. We apologize and regret our delayed response.

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10/18/2012Problems with Product / Service

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BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

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