Consumer complaint received 2025-03-11 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Closing an account — Funds not received from closed account
Company: Servicer under contract with Federal Student Aid
State: CA

Complaint narrative:
you seized all my assets and sanctioned me. XXXXXXXX XXXX  there is ongoing litigation. im going to testify against you. do not contact me again. you are currently in default. repay creditors NOW! send all communication here : XXXX XXXX XXXX Partner XXXX XXXX XXXX New York XXXX | XXXX this is in response to this harassment email I received XX/XX/year> after opting out and a cease and desist order. this is a violation of the bankruptcy proceedings. : Federal Student Aid URGENT : Your federal student loan is at risk of going into default. 



XXXX, your loan is past due. Act now to avoid serious consequences. 

Our records show that you have missed payment ( s ) on your federal student loan and your account is past due. By missing your monthly payment ( s ), you are now considered delinquent. After 90 days without making a payment, you will be reported to the national credit bureaus and your credit score will be significantly damaged. 

If you continue to miss payments, your loan will go into default which will have serious consequences : Loan acceleration : The entire unpaid balance of your loan and any interest you owe will become due immediately. 
Wage garnishment : We can begin collecting on your loan by taking money from your wages. 
Treasury offset : Your tax refunds and federal benefit payments will be withheld and applied toward repaying your loan. 
Loss of options : You will no longer be able to change repayment plans and will no longer be eligible for temporary relief options such as deferment or forbearance.

If youve missed a payment or are having trouble making payments, contact your loan servicer immediately to discuss options to avoid defaulting on your loan.

Contact My Loan Servicer Timeline for Delinquency and Default One day late : Your loan becomes past due, also known as delinquent. 
90 days late : Your loan servicer will report your delinquency to national credit bureaus. 
270 days late : Your loan will go into default. 


What if I Cant Make My Monthly Payment?

Contact your loan servicer. Your loan servicer can help you understand your options ; and you may be able to get a repayment plan with a lower monthly payment. 


Switch your repayment plan. Eligible borrowers can look into the Extended Repayment Plan, the Graduated Repayment Plan, or other alternative plans that may offer lower monthly payments compared to the Standard Plan. 


Change your payment due date. Pushing your payments to a more convenient time in the month, such as a day after you receive your paycheck, could help you budget and manage your loans. 


Get temporary relief through deferment or forbearance. In certain situations, such as financial hardship, your loan servicer can temporarily pause your payments. Interest will accumulate, but this pause will remove your current delinquency from your account. 


Check to see if youre eligible for targeted forgiveness. There are forgiveness programs for borrowers in certain situations, such as working in public service ( including nonprofit healthcare and education ) or becoming totally and permanently XXXX. 


Look into consolidating your federal student loans. Consolidation could lower your monthly payments, but you must consider the pros and cons of consolidation to decide if consolidation is right for you. Borrowers can submit a paper loan consolidation application. 


Upcoming XXXX : Consequences of Missed Federal Student Loan Payments Join us on Thursday, XX/XX/XXXX, from XXXX p.m. Eastern time for a free webinar that will offer insights into the consequences of missed federal student loan payments. Participants will gain a clearer understanding of what it means to be in default and learn the steps necessary to get out of default. Additionally, attendees will discover affordable options to help them stay on track with their student loan payments. 

Register Now More Resources Avoiding Default Getting Out of Default Beware of Scams You never have to pay for help with your federal student aid. You might be contacted by a company via phone, email, or postal mail saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. Make sure you work only with the U.S. Department of Education and our loan servicers and never reveal your personal information or account password to anyone. 

Our emails to borrowers come from noreply @ studentaid.gov or XXXX. You can report scam attempts to the Federal Trade Commission by calling XXXX or by visiting reportfraud.ftc.gov. 

Learn more about how to avoid student aid scams.

Company response to consumer: Untimely response