Consumer complaint received 2026-03-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: Servicer under contract with Federal Student Aid
State: NM

Complaint narrative:
I am filing this complaint against XXXX, my federal student loan servicer, for an ongoing autopay processing failure that has resulted in my account being wrongfully designated as delinquent since XX/XX/XXXX. I have a flawless payment history and have acted in complete good faith throughout this matter. XXXX has acknowledged the error on multiple occasions but has failed to apply the correct remedy, and their conduct during the dispute process has been evasive and unprofessional. My loans were transferred from XXXX to XXXX without my consent, with first payment activity on XX/XX/XXXX. Upon transfer, I enrolled all loans in 100 % auto-debit, correctly configured at a XXXX ratio with each loan 's monthly payment amount. My account settings requested a total of {$260.00} per month, and I had every reasonable expectation that this amount was being withdrawn, as I was never notified of any discrepancy or incomplete payment at any point during the 18 months prior to XX/XX/XXXX. From XX/XX/XXXX through XX/XX/XXXX, no delinquency notices were issued and no alerts of any kind were received. I have maintained a $ XXXX available bank balance throughout, and my separate loans with another servicer have continued auto-paying without issue during the same period. Beginning XX/XX/XXXX, XXXX began issuing delinquency notices on my account for the first time. Upon investigation, it was determined that XXXX 's system had been withdrawing {$260.00} per month instead of the {$260.00} my account settings requested specifically, XXXX XXXX had been withdrawing between $ XXXX {$25.00} instead of the correctly configured {$32.00}. I was never notified of this shortfall at any point during the prior 18 months. I had no reason to audit exact withdrawal amounts against my settings, as auto-pay was configured correctly, no alerts were issued, and no delinquency notices appeared until XX/XX/XXXX. The discrepancy exists entirely within XXXX 's system. My account settings have not been modified since initial setup, and screenshots taken hours before my XX/XX/XXXX call confirm they remain correctly configured to this day. As a result of this processing failure, XXXX generated automated delinquency notices and wrongfully marked my account delinquent. The delinquent balance was initially shown as {$64.00}, which I paid manually on XX/XX/XXXX in good faith despite the charge later being confirmed as erroneous by XXXX representatives. The balance has since been erroneously increased to {$96.00}, meaning XXXX has been compounding charges on an error they created and acknowledged. I contacted XXXX on XX/XX/XXXX and spoke with Representative XXXX XXXX. Before reaching XXXX, I was deliberately disconnected after approximately XXXX minutes on hold and routed to a customer satisfaction survey with no representative contact. On my second attempt, XXXX acknowledged the following on record : Loan XXXX was confirmed as the source of the delinquency The delinquency notices were erroneous payments were satisfied per XXXX 's own records The {$64.00} XXXX paid on XX/XX/XXXX was not actually owed the charge was a result of the system error XXXX XXXX system was at fault for the partial withdrawal on Loan XXXX The issue was being referred to XXXX 's research department with an expected resolution of XX/XX/XXXX XXXX explicitly instructed me NOT to make the upcoming XXXX payment manually and advised me to follow up on XX/XX/XXXX if unresolved. I followed these instructions. The research department resolution deadline of XX/XX/XXXX was not met. I contacted XXXX again on XX/XX/XXXX when I received another delinquency notice showing my account now 62 days past due. The following occurred : FIRST CALL First call ( XXXX XXXX MT ) : I was connected to Representative XXXX XXXX, immediately requested a supervisor, was placed on hold, and was deliberately disconnected after approximately XXXX minutes and routed to a satisfaction survey. No supervisor contact was made. SECOND CALL Second call ( XXXX XXXX MT ) : I reached Representative XXXX XXXX, who initially provided resistance to my supervisor request. At XXXX XXXX MT, XXXX stated on record : " Your payment history is immaculate. It makes no sense why you have any delinquency notices. There is no reason your account should have any delinquent status. This needs to be fixed immediately. '' She further stated : " It's not about sympathy it's about what is right and wrong. '' SUPERVISOR EVASION Despite my repeated requests across both calls, I never spoke directly with a supervisor. A supervisor was reportedly present but communicated only through XXXX while I was placed on hold. The supervisor 's name was never provided. FORBEARANCE DENIAL At approximately XXXXXXXX XXXX MT, XXXX offered to apply a voluntary forbearance to clear the delinquency. I explicitly declined this offer and requested an administrative forbearance backdated to XX/XX/XXXX the correct remedy for a servicer caused error. XXXX stated this could not be accommodated due to " too much red tape. '' This is not a legitimate justification. Administrative forbearance exists precisely for servicer caused delinquencies. EXPLICIT DECLINATION At XXXXXXXX XXXX MT, I explicitly and finally declined any voluntary forbearance on record. I stated clearly that I do not consent to any forbearance unless it is an administrative forbearance. XXXX acknowledged this. TICKET SUBMITTED At XXXX XXXX MT, XXXX confirmed a ticket was submitted to correct the withdrawal amount for Loan XXXX from {$260.00} to {$260.00}. Ticket Reference Number : XXXX. Correspondence expected within XXXX hours. However, it remains unclear how XXXX intends to clear the existing delinquency without an administrative forbearance, as no mechanism was specified. I have acted in complete good faith at every stage of this matter. I enrolled in auto-pay correctly, maintained sufficient funds, made a good faith payment on an erroneous charge, followed representative instructions, declined unauthorized account modifications, and thoroughly documented the entire timeline. XXXX has acknowledged the error repeatedly but has refused to apply the correct remedy and has engaged in a pattern of evasive conduct. I am requesting CFPB intervention to ensure this matter is resolved correctly, promptly, and without adverse impact to my credit.

Company response to consumer: Untimely response