Consumer complaint received 2024-06-26
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: EdFinancial Services (TX)

EMAIL FROM MY WIFE, XXXX XXXX XXXX, TO XXXX AS RECOMMENDED BY THE MEMBER XXXX XXXX XXXX XXXX. My husband and I accumulated quite a bit of XXXX  loan debt while in XXXX. Both of us were the first in our families to attend a major university. After graduating and getting married in XXXX, we were told we should consolidate our loans. We went ahead and did that in XXXX and began making payments on our loans every month and were never delinquent. I went back to XXXX  in XXXX and we were able to postpone loan payments due to me working part-time and eventually me quitting my last semester to focus on finals and certification exams. During this time, we pulled out more loans to help pay for my schooling. Once I XXXX  in XXXX, I contacted the loan provider and asked if we could consolidate the new debt with our old debt. It was a very easy process. From XXXX until XXXX, our monthly payment was between {$370.00} and $ XXXX to do at times, but doable. Beginning in XXXX, my husband got his XXXX XXXX XXXX  and began XXXX  at a XXXX XXXX  in XXXX. This was intentional since we knew there was the XXXX XXXX XXXX XXXX. In XXXX my husband applied for this, and he was denied. We were told he didnt have any loans and that when I consolidated my loans in XXXX with our marriage consolidation, that somehow this reset the loan and that I agreed to place the loan in my name. This made no sense but this was the reason we were given. At the time I was XXXX  and a lot was going on so we figured lets revisit at another time. Fast forward to XXXX in XXXX. We decided to re-apply for the XXXX XXXX XXXX, and my husband was deniedagain. There was a lot of medical issues/hospitalizations going on with my XXXX  at the time and we both could not remember receiving an email or any paperwork stating why the denial. Then the relief was announced by the Biden administration. We applied for XXXX so that our loans could be separated and my husbands loans forgiven and so I could benefit from the relief program. In XX/XX/XXXX XXXX, the company now owning our loans, contacted me to inform me that according to what they could see, our " consolidated '' loans were never actually consolidated. Per studenttaide.gov, his loans were completely paid off and he owes nothing. In other words, they assumed the following : he and I agreed that I would take all his loans on in my name and he would not be responsible. I told them this was incorrect and they needed to figure it out. I even provided them with the paperwork I had showing when we consolidated. All of a sudden in XXXX I am being notified that my loan repayment is expected XX/XX/XXXX. I was informed to apply for the SAVE, and so I did as a first line measure. The first week in XXXX I was informed my first payment due, under the SAVE, would be {$900.00}! I called about a week later to get an update on all of the above and all they could tell me was we will re-apply for unconsolidation, it takes 30 days, but you must make your first payment on XX/XX/XXXX. That was the most help he could provide me. At one point we considered filing for bankruptcy, but we read that it wouldnt make a difference because bankruptcy doesnt forgive loans. And even then, the loan providers will always go after one of the spouses. We even read that in death, someone is always responsible. So the loophole works in their favor not ours? I also looked through my XXXX account because supposedly, they keep all records of submissions/denials/requests for 18 months. I could not see record of my husband 's submission for the XXXX XXXX XXXX. I requested this documentation and have still not received any feedback. I am hopeful you can help us and if not, could you recommend someone who could? 

This complaint has already been given to XXXX through the CFPB, and their response/solution was transferring the " customer service '' of our loan debt to another entity, called EdFinancial. This exchange was supposed to of been initiated on XX/XX/XXXX last month, but we have not received any information on the transfer whatsoever from either XXXX or EdFinancial. 

This is no way addresses the concern about my XXXX XXXX XXXX or the fact that my debt somehow disappeared when we consolidated out loans. These are the issues at hand, and none of them were addressed whatsoever. The requirement for forgiveness was only 5 years, and I served 12 years in a low XXXX XXXX XXXX XXXX XXXX XXXX XXXX of all subjects. In addition to that, I am entitled to complete loan forgiveness under the Biden Administration... but I can not receive that if they say I have no debt.