Consumer complaint received 2025-06-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Servicer under contract with Federal Student Aid
State: NJ

Complaint narrative:
My name is XXXX XXXX XXXX, and I am writing to formally express my deep frustration and disappointment regarding the mishandling of my Parent PLUS Loan at XXXX XXXX XXXXXXXX, XXXX XXXX. 



In late XXXX or early XX/XX/year>, I submitted a Parent PLUS Loan application through XXXX for {$20000.00}, which was approved. However, throughout the fall semester, I noticed the loan had not been applied to my student account. I physically visited the financial aid office multiple times in XXXX and XXXX and called, only to be told that the delay was due to XXXX system issues and updates. 



In XXXX, I was informed ( because I had contacted them again ) that the real issue was that my Master Promissory Note ( MPN ) had not been completed. I immediately completed it and confirmed with the office. I was told that if any problems arose, someone would reach out to me directly but no one ever did. 



In XXXX, after following up again, I was told that the XXXX still hadnt been received, so I resubmitted it and was once again assured that it would now be processed, and that Id be contacted if anything went wrong. Again, no one followed up. I repeatedly checked my student account with no update. so I contacted the school which they then told me to contact XXXX myself. The representative of XXXX was very unprofessional and informed me that my school was lazy and could accept the XXXX via email or physical submission and even expressed that the school was simply not doing their job. ( I also want to add the the XXXX employee could of also told me that my XXXX had expired in XXXX and saved me my time but did not tell me there were any issues with my loan when I asked ) this will then lead to the issue I emailed the MPN to the school as instructed. I was told it would be processed within XXXX  days that didnt happen. After the 10 days passed I contacted both XXXX and the financial aid office to ask what was going on. And On XX/XX/XXXX, I received an email from XXXX stating that the loan had expired back in XXXX, meaning the entire process would need to be redone. Less than XXXX minutes later, my school emailed me and finally confirmed the same. This is unacceptable. Mind you this was the week leading into finals + moving out of the dorms which I had to move out from CALIFORNIA TO NEW JERSEY. 



For months, I was misinformed first being told the issue was with XXXX, then the MPN, then silence. Only during finals week, while I was trying to study and coordinate moving back to New Jersey, did I finally get the truth. Due to the timing, I couldnt reapply until the following week, so when I emailed my school to tell them I redid my PARENT PLUS LOAN I was told that since the school year had ended, nothing could be done, and they would not be able to process the loan for me and to contact them to find repayment plans. 



Today, I contacted XXXX again and was advised to file a formal complaint with both your department and the federal ombudsman. This is not just a clerical error its a case of repeated neglect, miscommunication, and failure to properly assist a student in need. I did everything I was told, followed up consistently, and met every deadline until misinformation prevented me from completing the process in time. 



I am requesting immediate assistance in finding a resolution to this issue. Whether that includes retroactive loan processing, a financial appeal, or further escalation, I am not accepting that I did everything right and am now left with thousands of dollars unpaid due to errors outside my control. 

I look forward to your urgent response.

Company response to consumer: Untimely response