Consumer complaint received 2025-07-22 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Problem with a company's investigation into an existing problem — Difficulty submitting a dispute or getting information about a dispute over the phone
Company: Servicer under contract with Federal Student Aid
State: OR

Complaint narrative:
XX/XX/XXXX, I am in the process of closing on a home, when I noticed my credit score fell from XXXX to roughly XXXX. After looking into this, I noticed there is one singular loan out that was sent to collections. When I called about this loan, they told me it was tied to a different loan servicer than my XXXX XXXX XXXX and my XXXX loans but didn't give me any specific information. Then, they told me it was sent to collections. So, I have sent disputes to the top 3 credit agencies and sent in a debt validation request. I will include that in this complaint. 

Problem # 1 According to them, they sent mail to my address on file which is XXXX XXXX XXXX XXXX. However, I never received in letter. If I did, I would've paid for it like my other loans I've been paying on time for years. The agent on the phone told me they have an outdated computer system, and that he has no way of verifying if the mail was actually sent. He also told me they didn't make any efforts to contact me via phone or email, which they have both on file. I also stated my current address should be on file for years and he said that it's currently on file but unable to verify if it was during the time. Essentially, he told me he can't verify anything and even suggested I reach out to the credit agencies to dispute it since he doesn't have any power to do anything. All he told me was to write in a letter to dispute and they'll reach out in 30 business days. That doesn't help my current situation when I'm in the process of buying a home after building my credit for years.

Problem # 2. 
I called 2 different reps and they're not able to explain how when I consolidated ALL my loans through Studentaid.gov, one loan slipped through the cracks. They were not able to provide any evidence of a promissory note, or double check that it's not a duplicate loan that in fact was consolidated but an entry error. Again, they defaulted to telling me they had old systems and don't have any of that information at hand and to send in a letter to dispute and In 6-8 weeks they'll reach out.

Problem # 3 If this loan is illegitimate, they have no way of proving it is or isn't and have no ability to help me. If this loan is legitimate, they can't verify or prove the took the proper steps to inform me it was being sent to collections. If this was any other financial organization they would be held to a higher standard and held accountable. However, because it's the department of education they're able to not prove anything, provide anything, and pass me off and tell me to get screwed.

Problem # 4 I am in the current process of closing on a house. This is affecting my ability to close and causing a lot of emotional and financial damage that could be easily avoided or handled more appropriately. If no further action is provided for the DoE I will sue for legal action for financial and emotional damages.

Company response to consumer: Untimely response