Consumer complaint received 2026-01-05 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: EdFinancial Services
State: MD

Complaint narrative:
Complaint Against : U.S. Department of Education and its federal student loan servicers Issue Summary : Failure to process legally authorized loan discharges, misrepresentation of Public Service Loan Forgiveness ( PSLF ) eligibility, and unlawful obstruction of Income-Driven Repayment ( IDR ) access, resulting in financial harm and inaccurate credit reporting.

I am submitting this complaint regarding systemic violations by the U.S. Department of Education ( ED ) and its loan servicers related to borrower protections guaranteed under federal law.

1. Failure to Properly Discharge Loans for Defrauded Borrowers I attended a for-profit college that engaged in fraudulent and deceptive practices. Borrowers from this institution were misled regarding job placement rates, program accreditation, transferability of credits, and post-graduation outcomes. These actions qualify for borrower defense to repayment and/or group discharge under federal law.

Despite eligibility for discharge, ED and/or its servicers failed to timely process the discharge, continued collection activity, and continued to report the loans to credit reporting agencies. This resulted in financial harm and credit damage despite statutory entitlement to relief.

2. Misrepresentation of Public Service Loan Forgiveness ( PSLF ) Eligibility ED and its servicers provided inaccurate and misleading information regarding PSLF eligibility. Borrowers were told their loans or repayment plans qualified when they did not, or were discouraged from enrolling in qualifying repayment plans. In other cases, borrowers were incorrectly informed that qualifying employment or payments did not count.

These misrepresentations caused borrowers to lose qualifying payments, delay forgiveness, and incur unnecessary interest and fees, in violation of federal consumer protection standards.

3. Removal of IDR Application Forms and Unlawful Processing Halts ED unlawfully removed Income-Driven Repayment ( IDR ) application forms from its website and/or servicer platforms, halted IDR processing, and failed to provide alternative access. This directly prevented borrowers from enrolling in or recertifying affordable repayment plans required by federal law.

As a result : Borrowers were pushed into delinquency or default Affordable monthly payment options were denied Negative credit reporting occurred despite borrowers attempting to comply These actions violate federal statutes governing student loan servicing and repayment access, including requirements to provide IDR options and process applications in a timely manner.

4. Credit Reporting Violations Loans that should have been discharged, placed in administrative forbearance, or enrolled in IDR were inaccurately reported as delinquent or in default. This violates the Fair Credit Reporting Act ( FCRA ), which requires information to be accurate, complete, and not misleading.

Harm Suffered : Denial of legally entitled loan discharge Loss of PSLF qualifying time Inability to access affordable repayment plans Accrued interest and fees Damaged credit reports Emotional and financial distress Requested Resolution : I respectfully request that the CFPB require the U.S. Department of Education and its servicers to : Immediately process all applicable loan discharges for defrauded borrowers Correct PSLF records and restore lost qualifying payments Restore and properly process all IDR applications and recertifications Remove all inaccurate negative credit reporting related to these violations Cease unlawful servicing practices that obstruct borrower access to federal protections

Company response to consumer: Closed with explanation