Consumer complaint received 2024-10-28
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account status incorrect
Company: EdFinancial Services (GA)

Prior to XX/XX/XXXX, I had one FFEL student loan that we held by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX ( XXXX ), account number, in the amount of {$58000.00}. 

On XX/XX/XXXX, I submitted a Direct Consolidation Loan Application for this loan on the Federal Student Aid website in order to apply for the SAVE program. 

The Direct Consolidation Loan Application was processed and posted as approved on the XXXX website on XX/XX/XXXX. 

On XX/XX/XXXX, per the directions to be approved for the SAVE program, I submitted an Income-Driven Repayment ( IDR ) Plan and selected SAVE as the repayment option. 

The Income-Driven Repayment ( IDR ) Plan was posted as approved on the XXXX website XXXX XX/XX/XXXX. 

The new Direct Consolidation Loan was approved for XXXX and was assigned to Ed Financial as my new loan servicer which was reflected on the Federal Student Aid website. 

On XX/XX/XXXX of XXXX, I received a letter from XXXX confirming approval of the Direct Consolidation of my formerly XXXX loan in the amount of {$58000.00}. 

On XX/XX/XXXX of XXXX, I received a letter from XXXX showing themselves as servicer of my XXXX loan in the amount of {$58000.00} with no acknowlegement of my application for transfer of this loan to a DCL. 

On XX/XX/XXXX of XXXX, I received a letter from Ed Financial acknowledging themselves as the servicer of my Direct Consolidation Loan in the amount of {$58000.00}. 

Shortly after the first week of XX/XX/XXXX, I began receiving bills from both XXXX AND Ed Financial. 

I logged into my FSA account and saw that I was now erroneously showing two loans for the same amount instead of just one loan - one FFEL loan serviced by XXXX and XXXX DCL/SAVE loan serviced by Ed Financial XXXX 

I began paying the Ed Financial bills and my account is in good standing. 

I contacted XXXX shortly after receiving their bill to make them aware that I had applied for a DCL and that the loan had been transferred to a new servicer. 

I also submitted documentation of the application to transfer the loan via XXXX 's online portal in an effort to get the issue cleared up. 

On XX/XX/XXXX, we contacted Ed Financial to request their assistance in researching why XXXX was still showing as our loan servicer. 

On XX/XX/XXXX of XXXX I submitted a feedback case through XXXX website regarding the issue. This case was answered by XXXX on XX/XX/XXXX stating that as of XX/XX/XXXX " ... we have not received correspondence or loan pay off information from the Department of Education to include the loans that XXXX currently owns and services into your current consolidated loan ... '' Upon realizing that this issue was not getting cleared up quickly, and in order to prevent being reported to the credit bureau for non-payment by XXXX, on XX/XX/XXXX of XXXX, we requested a forbearance which ends on XX/XX/XXXX. 

On XX/XX/XXXX we contacted XXXX to request their assistance in clearing up out issue. They submitted a request their processing department for review to find out why XXXX was not paid for our loan after the transfer was approved. Their investigation results stated that Ed Financial was responsible for forwarding their possession of my loan. 

On XX/XX/XXXX I also called Ed Financial and spoke to a person named Grace in the Account Resolution Escalation Line. She submitted a request to loan servicing to investigate why XXXX stated that they had not been contacted regarding the transfer of the loan. Their results accepted no responsibility and basically blamed XXXX  or Federal Student Aid Consolidation Department. 

To date, XX/XX/XXXX, I still erroneously show XXXX student loans due to what seems to be a paperwork glitch in the transfer. 

Thanks to an article published in the XXXX  XXXX, we are aware that this is an issue that has happened to thousands of other student loan borrowers due to a change in how loans are transferred and the issue points to the servicer receiving the loan- in my case, Ed Financial- not filing an XXXX segment when they received the transfer of my loan from XXXX. 

I have spent hours contacting XXXX, the XXXX XXXX XXXX, XXXX, XXXX the party responsible for transferring the original loan from XXXX XXXX XXXX to XXXX, XXXX and Ed Financial to get this error rectified. 

Lastly, I have been notified by XXXX that my loan is being transferred to XXXX so they need to be contacted as well.