Consumer complaint received 2026-01-24 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: WI

Complaint narrative:
Chief Complaint : Complaint Against Student Loan Servicer for Misconduct : XXXX, XXXX and then U.S. DEPARTMENT OF EDUCATION, XXXX XXXX XXXX, My loan account has been improperly mishandled with Failure to process loan forgiveness or discharge requests, I am filing this formal complaint regarding repeated and ongoing errors, misconduct, and unlawful servicing practices related to my federal student loans ( approx. {$73000.00} ) and the Public Service Loan Forgiveness ( PSLF ) program.

Background & Issues : Servicer Mismanagement : My federal student loan was initially serviced by XXXX, which repeatedly mishandled my account, failed to properly record qualifying PSLF payments, and provided inaccurate information regarding PSLF eligibility and payment application. XXXX failures contributed directly to miscounted PSLF payments and improper account handling. 

XXXX  Failures : After my loan transferred to XXXX, critical servicing errors continued. XXXX failed to properly credit all qualifying PSLF payments I made while employed full-time in public service for over XXXX years. XXXX also mishandled employment certifications, misinformed me about eligibility, and did not timely process or correctly record qualifying payment counts toward PSLF. These issues mirror allegations in ongoing lawsuits and investigations alleging deceptive, unfair, and unlawful servicing practices, including failure to track payments and misrepresent PSLF eligibility. 

Privacy and Reporting Violations : XXXX  mishandling of loan transfers and account information resulted in incorrect credit reporting, in line with documented findings that servicers including XXXX have caused widespread credit reporting errors. 

Department of Education Oversight Failures : My loans are now managed directly by the U.S. Department of Education, yet the servicing errors persist and have not been corrected despite multiple submissions of qualifying documentation, PSLF applications, and repeated inquiries. These failures have delayed my PSLF discharge and caused unnecessary interest accrual, possible delinquency status, and financial harm. 

Legal & Program Violations : Public Service Loan Forgiveness ( PSLF ) Statute ( Higher Education Act ) : PSLF requires loan forgiveness after XXXX qualifying payments while serving in qualifying public service employment. I have met these criteria, yet forgiveness has not been properly applied. 

Consumer Financial Protection Act / Consumer Protection Laws : Servicers are prohibited from deceptive, unfair, or abusive practices. Providing inaccurate information about PSLF eligibility, failing to credit qualifying payments, and misreporting account information constitute unfair and deceptive practices. 

Federal Servicing Agreements & Regulations : Servicers are contractually required to accurately apply payments, process forgiveness applications, maintain accurate records, and communicate timely and correct information. 

Harms & Consequences : I have been forced to continue paying a loan that should be discharged.

I have incurred additional interest and potential credit harm.

I have been provided incorrect information delaying my PSLF benefits.

My right to accurate servicing under federal law has been violated.

Company response to consumer: Untimely response