Consumer complaint received 2024-11-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: EdFinancial Services
State: MI

Complaint narrative:
I am submitting this complaint concerning my experience with XXXX XXXX XXXX XXXX XXXX ( XXXX ) and my student loans. I believe XXXX misused my financial aid and student loans, enrolling me in additional courses for financial gain and causing me financial and educational harm. 

In XXXX, I completed my XXXX in XXXX XXXX at XXXX. Following my XXXX, XXXX played a critical role in re-enrolling me into another XXXX XXXX program in XXXX. This re-enrollment was done without a clear advisement on the consequences it would have on my financial aid, student loan availability, or the transferability of my credits toward a XXXX XXXX. I feel I was misled into continuing my studies at XXXX under the false impression that this additional degree would be beneficial to my educational goals. 

As I neared the completion of this second XXXX XXXX, I realized that I was not advancing toward a XXXX XXXX and that many of the courses I was encouraged to take would not transfer. I left XXXX and enrolled at XXXX XXXX  to pursue a XXXX XXXX, which aligned better with my career and educational objectives. However, because of the unnecessary courses and repeated enrollment at XXXX, I now lack sufficient federal loan funds to cover my education expenses at XXXX XXXX. XXXX  actions have caused me to exhaust a significant portion of my student loan eligibility without obtaining a degree that furthers my professional goals. 

Unfair and Deceptive Practices Under the Higher Education Act and the Federal Trade Commission Act ( 15 U.S.C. 45 ), schools are prohibited from engaging in deceptive practices that harm students financially. I believe XXXX  actions constitute unfair and deceptive practices, as they provided inadequate guidance and failed to inform me of the limitations on financial aid resources, instead encouraging me to remain enrolled in programs that did not benefit me. Additionally, they failed to disclose how credit transferability would impact my progress towards a XXXX XXXX. 

Mismanagement of Financial Aid and Student Loans According to Title IV of the Higher Education Act ( 20 U.S.C. 1070 et seq. ), institutions are required to manage federal student aid in a way that benefits students and advances their educational goals. XXXX  actions led me to accumulate unnecessary debt and wasted a substantial portion of my loan eligibility. By failing to advise me adequately about the limits of financial aid and the relevance of the courses to a four-year degree, XXXX misused my loan eligibility in a way that directly conflicts with Title IV requirements. 

Failure to Support Transfer of Credits XXXX  misrepresentation of credit transferability resulted in an additional financial burden, as most of the credits I earned from XXXX to XXXX did not transfer to XXXX XXXX. This undermined the value of the additional courses I completed and contradicted the purpose of community colleges as stepping stones to four-year institutions. The misguidance provided by XXXX regarding transfer credits has cost me both time and money, as I am now required to retake courses that I was led to believe would be applicable toward my XXXX XXXX. 

Request for Resolution Due to XXXX  actions, I believe I have been financially exploited, resulting in significant wasted time and financial resources. I am seeking the following resolutions : 1. Loan Forgiveness for Wasted Credits : I request that my federal student loans for the second XXXX XXXX program be reviewed for potential discharge or forgiveness, as I believe I was misled into taking on this debt unnecessarily. 
2. Investigation of XXXX  Enrollment and Advising Practices : I request that the CFPB investigate XXXX  advising and enrollment practices to determine if other students may have been similarly affected and to prevent this practice from continuing. 
3. Restoration of Loan Eligibility : I request that my loan eligibility be restored to allow me to complete my XXXX XXXX at XXXX XXXX, where I am now enrolled. 
4. Financial and Educational Guidance Protections : I recommend that stronger safeguards and guidelines be imposed on community colleges to prevent them from engaging in practices that do not support students advancement toward higher educational goals. 

Thank you for considering my complaint. I believe that XXXX  practices not only wasted my financial aid and loan eligibility but also hindered my educational progress. I hope that the CFPB can address this issue to prevent similar experiences for other students.

Company response to consumer: Closed with explanation