Consumer complaint received 2026-01-09 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Servicer under contract with Federal Student Aid
State: AZ

Complaint narrative:
I am submitting this formal complaint against the XXXX Department of Education and their loan servicers ( XXXX, Debt Management & Collections System Loans, XXXX Loans and any other affiliate student loan servicers ) for serious and ongoing misconduct involving my federal student loan account. I am claiming abuse, negligence in reporting and crediting payments, denial of access to payment history and statements, loan fraud, unauthorized servicer changes without notice or consent, wrongful default reporting, and violations of data protection laws ( XXXX ) by the US Department of Education. 

The actions outlined below constitute unfair, deceptive, and abusive practices, inadequate servicing, and possible loan contract fraud. 

XXXX. Failure to XXXX XXXX and Report Payments I have been systematically denied access to my payment history, and payments I made have not been properly credited or reported. This constitutes unfair or deceptive servicing in violation of : XXXX XXXX. XXXX ( CFPB XXXX Unfair, Deceptive, or Abusive Acts or Practices ), XXXX XXXX. XXXX ( FCRA XXXX XXXX XXXX ), XXXX XXXX. XXXX ( FDCPA False or Unfair XXXX XXXX Practices ). 

The CFPB has identified widespread servicing failures where student loan servicers failed to provide required protections to borrowers and mishandled accounts, resulting in harm. 

XXXX. Unauthorized Servicer Transfers Without Notice My loan was transferred from XXXX servicer to another ( including XXXX, Debt Management & Collections System Loans & ECMC-CA loans ) without prior written or verbal consent. This failure to provide notice violated federal servicing standards and deprived me of the ability to monitor my loan and payments. 

Such servicer mismanagement has been highlighted in litigation and regulatory scrutiny, including the XXXX XXXX XXXX XXXX ( AFT ) v. XXXX case, which alleges servicers failed to send billing statements, miscalculated obligations, and mismanaged repayment options. 

XXXX. Invalid Promissory Note Contractual Fraud The promissory note associated with my loan does not contain my wet-ink signature or a signature from the Department of Education XXXX A contract, including a loan, generally requires signatures from all parties to be enforceable under common contract law principles. A purported loan without a valid signed agreement XXXX constitute loan contract fraud, misrepresentation, and unlawful debt collection. 

XXXX. Failure to Disclose Assignment/ XXXX XXXX of the XXXX I demand disclosure of the price for which my loan was purchased or assigned. If this transfer occurred for less than the balance claimed ( or without valid documentation ), the debt as enforced should be void under debt-validation and standing doctrines ( XXXX XXXX. XXXX ). 

XXXX. Improper Change to IDR Repayment Terms In XX/XX/year>, the Department of Education agreed to place my account in an Income Driven Repayment ( XXXX ) plan with $ XXXX monthly payments, which I paid via XXXX. Later, without notice or consent, my payment was increased to {$260.00} per month, which is improper, deceptive, and disruptive. The agreed upon {$5.00} per month automatic payment stopped, without notifying me. This caused the account to go into default Changes to repayment plans without borrower notification, especially in ways that trigger defaults, are exactly the type of servicing failures alleged in the US Department of Education and XXXX lawsuit filed by AFT and others, where practices like improper billing and misinformation about repayment plans are central claims. 

XXXX. Wrongful Default and Credit Damage Because of these servicing errors, including unreported payments and lack of communication changes to my repayment schedule, my loan was wrongfully reported as in default. This has harmed my credit and caused financial injury, which XXXX violate : XXXX U.S.C. XXXX ( FCRA Duty to Report XXXX XXXX ), XXXX laws against defamation and unfair reporting. 

XXXX. XXXX XXXX XXXX XXXX and XXXX There are multiple ongoing lawsuits demonstrating widespread abuses by US Department of Education and XXXX servicers, including XXXX : AFT v. XXXX, No. XXXX ( D.D.C. ), alleging failure to send billing statements, incorrect payment calculations, and mismanagement of repayment programs. 

XXXX v. XXXX ( XXXX. XXXX. ), alleging XXXX failed to implement discharges ordered by XXXX, failed to issue refunds, and continued reporting debts inaccurately. 

Regulators have also penalized XXXX for not sending timely billing statements to millions of borrowers, which caused widespread delinquency. 

XXXX. Data Breach, XXXX, and Title IV Violations My personal and financial data was compromised due to a data breach involving the student loan servicing infrastructure, violating XXXX ( Family Educational Rights and Privacy Act ) and Title XXXX data protections. Data breaches affecting federal student loan records implicate federal privacy obligations and expose borrowers to identity theft and financial harm. 

XXXX. Demand for XXXX XXXX XXXX XXXX on the above, I demand immediate cancellation of all student loan debt associated with my account. This cancellation should include removal of all adverse credit reporting and correction of public records reflecting the alleged debt and default.

Company response to consumer: Untimely response