Consumer complaint received 2026-04-24 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: TX

Complaint narrative:
To the Department of Education, I am writing to formally demand a total refund of {$64000.00} in payments made toward debts originated by XXXX for my attendance at the XXXX XXXX XXXX XXXX from XXXX XXXX XXXX. As documented in the attached Exhibit E ( XXXX Credit Report ), my total installment loan history with XXXX reached a sum of {$100000.00}. This request for restitution is based on the well-documented systemic fraud and deceptive trade practices of the XXXX XXXX , which rendered the education promisedand the resulting debtfraudulent at its inception. View Exhibits B, C and D financial papers the XXXX XXXX provided prior to admissions, middle and end of the Bachelors program. I did not receive any contact of my initial claim filed by CFPB ( Claim # XXXX ) within the 15 day window. I am submitting a new claim with new found discoveries since the first claim was filed. To clarify the allocation of this debt and my specific request for a refund : Federal Forgiveness Acknowledgment : I have already successfully secured {$36000.00} in forgiveness via the Public Service Loan Forgiveness ( PSLF ) program. While this addresses the balance of those specific federal obligations, it does not provide restitution for the out-of-pocket payments made toward my other Navient-held installment loans. Refund Request 1 ( Federal Installment ) : I am requesting a refund of {$37000.00} for payments made toward federal installment loans originated/serviced by XXXX, as identified in my credit records. Refund Request 2 ( Private/Refinance ) : I am requesting a refund of {$27000.00} for the three private loans I was forced to refinance in 2016. This refinance was a direct result of XXXX failure to provide feasible relief options for debt tied to a predatory institution. The Department of Educations liability is established by the following facts : Direct Knowledge of Fraud : Following the corporate restructuring where XXXX XXXX transitioned its portfolio to XXXX, I refinanced my student loans through XXXX in XXXX. At the time of this refinance, XXXX possessed documented knowledge of the systemic fraud and deceptive trade practices inherent to the XXXX XXXX XXXX XXXX. Despite this awareness, the institution chose to facilitate the refinancing of these predatory debts rather than providing the necessary relief or discharge to which I was entitled. Failure of Consideration : The education XXXX financed was a fraudulent product. Under the Holder Rule, because the school ( the seller ) failed to provide the promised educational services and placement outcomes, XXXX ( the lender ) is legally barred from enforcing these contracts and must return all amounts paid. Lack of Transparency and Obscured Liability : Furthermore, XXXX dual role as both the original lender and the servicer created a closed loop that lacked necessary transparency. This internal consolidation intentionally obscured the fraudulent origins of the debt, making it legally impossible for me to discover the school 's misconduct or XXXX XXXX liability as the " holder '' until now. By maintaining total control over the administration of these loans, XXXX effectively shielded the predatory nature of the XXXX XXXX contracts from discovery, tolling any applicable statutes of limitations regarding my claims for restitution. Please note that while {$36000.00} of my debt has been addressed through Public Service Loan Forgiveness ( PSLF ), that administrative action does not absolve XXXX of its liability to refund the {$64000.00} I paid out of pocket toward these voidable contracts. The XXXX XXXX misconduct regarding job placement rates and educational quality has been recognized by the Department of Education as grounds for full borrower relief. Because XXXX acted as the primary lender and beneficiary of these funds, I am requesting that you return the {$64000.00} paid toward these voidable contracts.

Company response to consumer: Untimely response