Consumer complaint received 2026-04-13 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: IA

Complaint narrative:
I am filing a complaint regarding a {$20000.00} federal refund that has been acknowledged but not reissued by the U.S. Department of Education. On XX/XX/2025, I submitted a cashiers check for {$20000.00} to pay off my private student loan serviced by XXXX. The payment was mistakenly sent to a Department of Education-associated payment address instead of the correct private loan address. XXXX confirmed that the payment was cashed by the U.S. Treasury and was not applied to my loan, and directed me to the Department of Education. On XX/XX/2025, the Department of Education confirmed that a full refund had been initiated through the U.S. Treasury. The check was later cancelled on XX/XX/2025, and has not been reissued. It has been over 10 months since the original payment and over 5 months since the refund was approved. I have not received the funds despite repeated attempts to resolve this. This delay has caused financial harm, including ongoing interest accrual and loss of use of funds. I am requesting immediate reauthorization and reissuance of the {$20000.00} refund and confirmation of processing. I am filing a complaint regarding a {$20000.00} federal refund that has been acknowledged but not reissued by the U.S. Department of Education. On XX/XX/2025, I submitted a cashiers check for {$20000.00} to pay off my private student loan serviced by XXXX. The payment was mistakenly sent to a Department of Education-associated payment address instead of the correct private loan address. XXXX confirmed that the payment was cashed by the U.S. Treasury and was not applied to my loan, and directed me to the Department of Education. On XX/XX/2025, the Department of Education confirmed that a full refund had been initiated through the U.S. Treasury. The check was later cancelled on XX/XX/2025, and has not been reissued. It has been over 10 months since the original payment and over 5 months since the refund was approved. I have not received the funds despite repeated attempts to resolve this. This delay has caused financial harm, including ongoing interest accrual and loss of use of funds. I am requesting immediate reauthorization and reissuance of the {$20000.00} refund and confirmation of processing. The original check Cashiers check from XXXX XXXX bank Check # XXXX Routing # XXXX Amount {$20000.00} Issued XX/XX/2025 Current Address is XXXX XXXX XXXX XXXX XXXX XXXX, Iowa XXXX Old address is XXXX XXXX XXXX XXXX XXXX, Iowa XXXX I XXXX XXXX can be reached at XXXX My Husband XXXX XXXX is also allowed to be reached and speak on my behalf his # is XXXX From talking with XXXX and the federal reserve the money is sitting with the department of education. Two complaints have been sent and one lead to a check being issued then cancelled. I really need help resolving this issue and recovering my {$20000.00} XXXX XXXX XXXX XXXX XXXX XXXX Thank You!

Company response to consumer: Untimely response