BORROWERS wrestling with college debt often complain that it is frustrating to deal with the companies that manage their student loans. This summer, federal regulators have stepped up pressure on loan servicers to treat their borrowers better.

Just this week, Wells Fargo Bank, the second largest lender of private student loans, agreed to pay a $3.6 million civil penalty to settle allegations by the Consumer Financial Protection Bureau that the bank used illegal loan servicing practices that resulted in higher costs and fees for some borrowers. Wells Fargo also agreed to pay $410,000 to affected borrowers.

The watchdog agency said that because of “breakdowns” in Wells Fargo’s servicing processes, thousands of borrowers had problems with their loans or received misinformation about their payment options.

The bureau said Wells Fargo, for instance, made it hard for borrowers to control costs by allocating payments in ways that maximized late fees. If a student had multiple loans, for instance, and made a payment that didn’t cover the full amount owed, the bank split the payment and applied some funds to each loan, rather than fully satisfying payments for some of the loans. The bureau also said the bank did not clearly inform customers that they could instruct the bank on how to allocate their payments.