Product: Student loan

The Cares Act Established disaster relief for student loan borrowers in XX/XX/XXXX retroactive to XXXX, XXXX through Congressional authority. Further authority was given to the Department of Education Secretary to draft and enforce policy to implement the provisions of the Cares Act pertainig to federal loans that were federally backed. In XX/XX/XXXX the Department of Education announced the expansion of the Cares Act to include FFELP loans held by and guaranteed by private and commercial lenders. In the guidance handed down from the DOE, the disaster relief of zero percent interest was to be applied and an automatic pause on the payments due in for those loans, and those loans in default were to be immediately returned to good standing. The DOE released GEN 21-03 which identified types of loans and separated into population XXXX, XXXX, and XXXX and specified the actions needed to be taken. In a series of XXXX separate question and answer releases XXXX XXXX addresses concerns from each GA and Servicer clarifying any doubts as to what actions needed to be taken. ( see attachment 22-03158 FOIA response ). XXXX was included in those Q & A sessions and also conference calls with FSA prior to those sessions. XXXX person XXXX was included in those conversations and emails. ( see attachment 22-03158 FOIA response ) XXXX willfully disregarded the GEN 21-03 and CFR 34 CFR 682.409 both of which mandated bringing the loans current and assigning to the DOE. Instead XXXX sold the loans to private lenders for profit. XXXX further submitted for collection costs/ rehabilitation costs after pushing rehabilitation agreements through completion. XXXX instead of transferring the loan to the department pushed rehabilitation agreements on borrowers to stop profit loss from the loans that were required to be returned to good standing. The Covid relief measures meant that XXXX would lose profits so instead of following the law and regulations, XXXX proceeded to deceive borrowers in their options for relief and seek profit at their expense and detriment. XXXX further along with XXXX and Nelnet violated consumer protection and credit reporting laws to include the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq., and its implementing regulation, Regulation V, 12 C.F.R. part 1022 ; and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq., based on unlawful acts and practices in connection with XXXX  servicing, default aversion, and collection of student loans. Borrower loan in this instance was a population XXXX  loan. Borrower contacted Nelnet and XXXX the day after the XX/XX/XXXX notice of expansion of the Cares Act was released. Borrower demanded that Nelnet and XXXX return the loan to good standing. Both XXXX and Nelnet refused to cooperate and afford to relief entitled under law. Instead XXXX allowed a rehabilitation agreement to go to completion after they breached the contract after being noticed by borrower several times. Nelnet was sen the public notice and confirmed reciept. Nelnet was required to regain possession of the loan and return to good standing as of XX/XX/XXXX at minumum. Nelnet was contacted and demanded to do so but refused to comply with the DOE GEN 21-3 requiring the relief to be applied retroactive. Nelnet continued to report the negative information to the borrowers detriment. XXXX failed to notify the prior servicer Nelnet to take actions required in GEN 21-03. XXXX failed to contact Nelnet to report the tradeline accurately to the Credit Reporting Agencies. XXXX further sold the loan to XXXX and collected profits from that sale and rehabilitation agreement after breached that rehabilitation agreement and after being notified by borrower. XXXX then refused to rescind the loan after being notified of the breach of the agreement and that the loan was illegally transferred and sold and in which they had no right of possession. XXXX continued to report incorrect balances, disregard covid relief, disregard forbearance and pauses, and continue to report the loan late to the CRAs after being formally noticed through their registered agent and through email. XXXX further sent notices to borrowers mirespresenting that the Covid relief had ended. XXXX violated FCRA and FDCPA and state and federal deceptive trade practices act laws. XXXX continues to report the loan as being late which continues to harm borrower. The actions by XXXX, Nelnet, and XXXX has been a long standing and continued journey of deceiving borrowers and breaking consumer protection laws, taking money from the federal fund and recouping monies that they are not entitled to under law or equity. DOE Contacts are contained in the attachments as well as some correspondence with XXXX, XXXX, and Nelnet. Attached in an enforcement action by the CFPB against XXXX in XXXX. Attached is an enforcement action by the state of PA Attorney General. The CFPB should take the same action against XXXX, XXXX, and Nelnet.