Consumer complaint received 2017-11-07
Company: United Student Aid (USA) Funds
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
United Student Aid Funds and XXXX XXXX have presented FFEL loan " Applications and Promissory Notes '' in order to receive reinsurance from the U.S. Department of Education without providing " Notice of Loan Guarantee and Disclosure Statements ''. All documents that United Student Aid Funds C/O XXXX XXXX  presented for reinsurance indicate loan amounts of {$0.00}, do not include interest rates, have no disbursement dates, and have no signature of lending officers.
After performing a FOIA / PAR document request requesting the " Notice of Loan Guarantee and Disclosure Statement '' for each FFEL application applied for through " XXXX XXXX ''. The U.S. Department of Education responded : Upon verifying with the loan servicers who searched warehouse files and other system databases for further documents regarding XXXX XXXX, Business Operations did not find any additional documents other than what was provided under XXXXXXXX. XXXX XXXX was listed as the previous lender of the loan.
-Aurthur Caliguiran - FOIA Public Liaison Additionally Federal Student Aid ; Business Operations also concluded : " You are requesting copies of Notice of Loan Guarantee and Disclosure Statements for the below accounts : XXXX  XXXX XXXX XXXX  Unfortunately, we are unable to provide these documents.
-XXXX XXXX - Loan Analyst -Operation Service As stated on the promissory application above my signature ; As a borrower I am entitled to an exact copy of this Promissory Note, The Notice of Loan Guarantee and Disclosure Statement, and any other document I sign.
Additionally on the back of these applications under Terms : Borrower Certification if the information on the Notice of Loan Guarantee and Disclosure Statement conflicts with the Application and Promissory Note, the information on the Notice of Loan Guarantee and Disclosure Statement is controlling.
Due to the lack of a " Notice of Loan Guarantee and Disclosure Statement '' there can not be a conflict between the NOLGDS and the promissory note.
The promissory notes provided by USA Funds C/O XXXX XXXX indicate that a loan was never executed. However USA Funds C/O XXXX XXXX felt compelled to reinsure these loans without the proper validation. In lieu of validation USA Funds C/O XXXX XXXX provided " Indemnification Agreements For the Assignment of Federal Family Education Loans with Damaged Promissory Notes or Promissory Notes With Un-initialed Alterations '' that were generated on XX/XX/XXXX. These " indemnification agreements '' do not represent any agreement between myself and any lending institution. Additionally it raises the question about whether these debts can be validated.
I have been referred the the " National Student Loan Database System '' with regards to my loan history. According to the NSLDS entries to this system regarding these loans were executed on XX/XX/XXXX by ED relying on information provided by USA Funds C/O XXXX XXXX who can not provide validation in the form of " Notice of Loan Guarantee and Disclosure Statements '' and also do not represent any agreement between myself and any lending institution. Additionally the NSLDS is not reliable due to other entries on my account that are also not correct including an executed loan by XXXX XXXX in XX/XX/XXXXthat was " Paid in Full in XX/XX/XXXX. I have never made any payment to XXXX XXXX for any student aid, because I never received any aid from XXXX XXXX.
Without a " Notice of Loan Guarantee and Disclosure Statement '' USA Funds C/O XXXX XXXX have not complied with XXXX " Conditions for claim payments from the Federal Fund and for reinsurance coverage. '' All reinsurance issued by the U.S. Department of Education to USA Funds and XXXX XXXX for these FFEL applications must be returned to the U.S. Department of Education including interest in order to remain compliant. All entries regarding my FFEL loan applications in the NSLDS as executed loans must be removed immediately.
I have attached the following documents : FFEL Applications indicating a XXXX loan amount.
Indemnification Agreements FOIA / PAR request confirmation FOIA / PAR Final Response FSA Business Operations Response Sincerely, JXXXX XXXX

Company response to consumer: Closed with explanation