Complaint sub-issue: Received bad information about your loan

*This letter was sent to the student aid ombudsman on  XXXX   XXXX ,  XXXX  ( Please note that this is my original complaint.    FedLoans s ervicing is currently making it extremely difficult to terminate my loan consolidation process. Be mindful, that as of today my current loan holder   XXXX   XXXX   whom I acknowledge is still servicing my LOAN. There is a supporting loan status letter that verifies my account is current with  XXXX   XXXX .  FedLoans i s claiming to be the account holder, but   XXXX   XXXX   has not received the funds to release the account as of  XXXX / XXXX / XXXX .  FedLoans  attempted to purchase the loan on  XXXX  ; however  XXXX     XXXX   sent back {$90000.00} of that {$44000.00} was my loan portion.  XXXX   XXXX  stated that was not enough to pay off the loan. At that time  XXXX  was waiting on  FedLoans  to pay off the loan before releasing it.  XXXX   XXXX  provided the Trace #  XXXX  as proof. On  XXXX / XXXX / XXXX   XXXX   XXXX  sent information to  FedLoans Services stating pa cket #  XXXX  was {$4000.00} short. They informed d FedLoans  that they need to receive payments before they will release the loan. On  XXXX / XXXX / XXXX  I called  FedLoans,    XXXX  ID #  XXXX , who stated that the consolidation process was still pending. He stated it would take 10 days before the consolidation is complete. I informed  XXXX  that  FedLoans w as seeking monthly payments from me as well as  XXXX   XXXX . FedLoan representative  XXXX  stated he did not understand why  FedLoans was  seeking payments because the consolidation was not complete. I wondered why as well, but made the payments to protect my  credit score. After speaking with FedLoan Repres entative  XXXX   I  decided to decline. I no longer wanted to proceed with the consolidation process. On  XXXX / XXXX / XXXX  I spoke with another FedLoan Representative,  XXXX  ID #  XXXX . I told  XXXX  that I faxed, and logged into my account to terminate the consolidation process and that I was following up on the status.  XXXX  proceeded to agree and granted me the termination. He said it would be officially terminated once  XXXX  returns {$140.00} to the    XXXX   XXXX   XXXX  . He also stated that the  two  payments that I made to  FedLoans s  would be forwarded to  XXXX  once the termination was finished. I called  XXXX   XXXX  to inquire about the {$140.00} in question.  XXXX   XXXX  did not know what I was speaking of. They stated that they do not owe  FedLoans  any funds because they never received the funds from  FedLoans.  ( Which is why they still have my loan/s ).  XXXX   XXXX  then referred me to the Ombudsman. FedLoans is claiming to have paid  XXXX ,  XXXX  is claiming not to have received the funds. My account was showing the option to add or remove loans, until today  XXXX / XXXX / XXXX  it mysteriously vanished after speaking with Representative  XXXX . ( I provided a screen shot of that ) In a matter of hours after speaking to  XXXX , my account showed my consolidation as completed this is after Representative  XXXX  obliged to the termination. I do not want  FedLoans to be my loan servicer. Also, FedLoans claim s that I was late on the  XXXX  payment that I submitted, but that wasnt the case as I included a copy of the payment history. Every time someone claims to update the account, it continues to show up as delinquent. I just want to remain with  XXXX   XXXX . FedLoans, for the most part does not seem to be forthcoming with valuable yet, truthful information.     *This was sent to the ombudsman on  XXXX   XXXX ,  XXXX   (  UPDATE after my original complaint ) I am sure you all are working diligently on my case. In this process I have been in contact with Fed  Loans Servicing . There is a representative named  XXXX  who speaks directly to me in regards to my current loan situation.   On  XXXX   XXXX ,  XXXX  @  XXXX  we spoke for  27  minutes and 35 seco nds. This conversation was very informative. Mindful this was as of  XXXX   XXXX / XXXX / XXXX   XXXX   XXXX  had yet to send all the funds back to Fed d Loans Servicing.    They were to send back the amount that Fed Loans paid to consolidate the loans. This was on  XXXX   XXXX ,  XXXX .   She informed me that  FedLoans sent two  payments. On  XXXX   XXXX ,  XXXX   FedLoans s ent {$44000.00}.  XXXX  returned that payment on  XXXX   XXXX ,  XXXX .    FedLoans t hen sent an underpayment amount 0f {$3700.00} on  XXXX   XXXX ,  XXXX .   On  XXXX   XXXX ,  XXXX   FedLoans s ent  XXXX  the {$44000.00}. ( At the time of the conversation  XXXX   XXXX  ) FedLoans is/was waiting on  XXXX  to send those funds back, the {$44000.00}.    XXXX  did not accept the underpayment of {$3700.00}. They sent that payment back on  XXXX   XXXX ,  XXXX . Because it was an underpayment of {$1000.00}  XXXX  would not accept it.   Fed  Loans  Representative  XXXX   XXXX   XXXX  informed me that she was unaware of  XXXX  underpayment policy.  XXXX  informed her of the policy and now she understands.   Fed  Loans  Representative  XXXX   XXXX   XXXX  also stated to me that once they receive the funds back form  XXXX  that I can then  1. Proceed with cancelling the consolidation with FedLoans, 2. Proceed with the consolidation, now that FedLoans i s aware of  XXXX  underpayment policy.   I am sure I am going to terminate the consolidation at this time. Representative  XXXX  was very diligent with correcting the delinquency that was displaying on my  FedLoans  account. She was able to see that my account was indeed current. As I stated before, although the consolidation was never officially completed, Fed Loans was still billing me, and out of fear of a bad credit reporting I was paying FedLoans as scheduled.   Representative  XXXX  did inform that If I choose to terminate the consolidation with FedLoans, that the payments I made to FedLoans would be forwarded to   XXXX . It  would take 30-60 days.   I spoke with Representative  XXXX  on Thursday  XXXX   XXXX ,  XXXX  @  XXXX  for  4 minutes and 30  seconds. During the conversation she had informed me that the  XXXX  refund  (  or returned funds ) had popped up on  XXXX   XXXX ,  XXXX . She said it still had to process. The processing might be completed tomorrow  XXXX   XXXX  but not later that Tuesday  XXXX   XXXX ,  XXXX .   On  XXXX   XXXX ,  XXXX  I did receive a letter in the mail dated  XXXX   XXXX   XXXX ,  XXXX  ), that stated that  XXXX  part of the loan was removed from the consolidation application the amount of {$3700.00}. Now I am just waiting for the {$44000.00} to be processed removed as well.   I am still somewhat confused ; the last time I spoke with   XXXX   they had informed me that they never received the funds. I am sure you all will investigate and resolve that.   Once that is complete I am hoping that the removed loans will reflect on my studentloan.gov account as well. According to student    aid.gov    it appears that I CURRENTLY have  XXXX  loans with both  XXXX   XXXX  and FedLoans.        XXXX  direct contact is :  XXXX   XXXX   XXXX   XXXX