Consumer complaint received 2025-03-25 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Servicer under contract with Federal Student Aid
State: NV

Complaint narrative:
I received a letter signed by XXXX XXXX Chief Operating Officer Federal Student Aid. 
This letter dated XXXX, XXXX XXXX copied below. 
From : U.S. Department of Education XXXX Date : Thu, XX/XX/XXXX, XXXX Subject : Student Loan Discharge Based on Borrower Defense Evidence To : XXXX XX/XX/XXXX Dear XXXX XXXX XXXX Subject : Student Loan Discharge Based on Borrower Defense Evidence The Department of Education ( " Department '' ) has determined that the loan ( s ) you received to attend a school owned and operated by Corinthian Colleges Inc. are eligible for full loan discharge. This means the remaining balance on the loan ( s ) will be forgiven. You do not have to make any more payments on the loan ( s ).

Your loan ( s ) will be discharged as part of a Department action ( " Group Discharge '' ) to discharge all outstanding loans for attendance at XXXX XXXX XXXX after finding that it engaged in widespread misconduct that violated state consumer protection laws and/or made widespread substantial misrepresentations about its educational programs, both of which are grounds for borrower defense to repayment under the borrower defense regulations ( 34 C.F.R. 685.206 and/or 685.222 ). The Department is discharging your loans without requiring you to file an application because of the pervasive and widespread nature of the school 's conduct. 

You also may receive a refund for prior payments made to the Department on your discharged loan ( s ) related to XXXX XXXX XXXX. Your servicer will let you know if you are eligible for a payment refund, which would be mailed to you. Please check your online account with your loan servicer to ensure your address is correct so you can receive any refund. Otherwise, you do not have to take any further action to receive your discharge. Your credit report will also be updated to reflect this discharge when it is complete. 

If you do not wish to accept this discharge, please contact your servicer within 30 days of receiving this letter. 

It will take the Department some time to process your discharge. Until the Department completes its work, your eligible loan ( s ) from XXXX XXXX XXXX will remain paused in forbearance/stopped collections, and we will not ask you to resume making payments. If your loan ( s ) are in default, we will not attempt to collect on the loan ( s ) being discharged. If you have other loans not covered by this group discharge, you will enter repayment and/or collections when the national pause on student loan repayment and collections ends. 

If you have questions about this notice, please call our borrower defense hotline at XXXX from XXXX XXXX on XXXX or from XXXX XXXX on Saturday or Sunday. 

Sincerely, XXXX XXXX XXXX Operating Officer Federal Student Aid Federal Student Aid An Office of the U.S. Department of Education XXXX XXXX XXXX, XXXXXXXX XXXX XXXX XXXX StudentAid.gov/borrower-defense The loan department is coming after me for payment. The student loan department is telling me that I can apply for borrowers defense yet the letter states I don't have to file any paperwork. I spoke with a person who told me that I didn't know what I was talking about. She said I am mistaken my loans are not being dismissed. 
Prior to this letter I sent a letter to the department of Education copied below. 
Dated XX/XX/XXXX XXXX XXXX, changed to XXXX, which changed to XXXX XXXX Along with not getting to learn properly with the curriculum outlined I should be able to get my loan forgiveness or cancelled. I should not have to pay. 
Thank you. 
XXXX XXXX. 
My problems are deep. I had my XXXX tax return in the amount of {$3300.00} sent to offset. These were supposed to be returned because of the pandemic. I never got mine back. This caused a hardship beyond imagination. I was as a result of not receiving my XXXX tax return in the amount of {$3300.00} evicted from my apartment losing everything I owned and sent into homelessness for over 2 years. I am now thankfully in a housing program with hud housing and the XXXX. I have minimal to no income. The dismissed loan would have meant that my tax return in the amount of {$3300.00} would have been returned. I am below the poverty limit. I am a Veteran and I cant buy the things I need. I'm not young so the job market is hard. I have called everyone and explain my situation and nothing is being done. I now have the Department of Education coming after me for payment. I have no way to pay this. I am so confused as to how they can do this to me. I need my money returned and the student loans dismissed as stated in the letter received by the department of Education. 
Please help. 
Sincerely XXXX XXXX XXXX XXXX

Company response to consumer: Untimely response