Consumer complaint received 2025-12-04 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: Servicer under contract with Federal Student Aid
State: PA

Complaint narrative:
Borrower Defense to Repayment Legal Statement Name : XXXX XXXX Address : XXXX XXXX XXXX XXXXXXXX PA XXXX Email : XXXX Last 4 of SSN : XXXX Date : XX/XX/year> To : U.S. Department of Education Borrower Defense Unit RE : Borrower Defense to Repayment Application Request for Full Discharge, Refund, and Credit Correction To Whom It May Concern, I am submitting this formal Borrower Defense claim pursuant to 20 U.S.C. 1087e ( h ) and 34 C.F.R. 685.206 ( e ) and 685.222, seeking the following relief : Full discharge of all federal student loans associated with my enrollment Refund of all payments made toward the loans Removal of derogatory credit reporting and restoration of my credit profile 1. Legal Basis & Precedent XXXX XXXX XXXXXXXX This claim is supported not only by federal statutory and regulatory rights but also by the findings, structure, and implementation framework established in the class-action litigation XXXX XXXX XXXXXXXX ( formerly XXXX XXXX XXXXXXXX ) , Case No. XXXX ( XXXX. XXXX. ). 

In that case, the Court affirmed the Department of Educations obligation to cancel federal student loan debt where institutional misconductincluding misrepresentation, omission of material facts, or predatory recruitment practicesinduced borrower enrollment or borrowing. 

The XXXX ruling also clarified : Borrowers need not prove intent to defraud Misleading claims regarding licensing eligibility, accreditation, job placement rates, and career outcomes qualify for discharge Borrowers denied for years are entitled to relief where evidence supports qualifying misconduct My experience aligns directly with the categories of wrongful conduct identified and validated under XXXX XXXX XXXXXXXX. 



2. Misrepresentation of Job Placement Rates and Career Outcomes Before enrollment, the school represented that graduates routinely secured employment within the field at rates exceeding 8090 %, suggesting a near-guaranteed career outcome tied to program completion. 

These statements were materially false. After completion, employers did not recognize or accept the credential, and I was unable to secure employment in the field as promised. 

This constitutes substantial misrepresentation under : 34 C.F.R. 685.222 ( b ) ( d ) Subpart F 34 C.F.R. 668.71668.75 3. False Statements Regarding Accreditation and Licensure I was told the program was : Fully accredited Recognized by employers and licensing bodies Designed to meet state requirements for employment or certification These statements were untrue. I later discovered that : The program lacked full recognition Multiple licensing pathways did not accept coursework Employers declined to acknowledge or consider graduates This constitutes prohibited misrepresentation under : 34 C.F.R. 685.222 ( e ) ( 2 ) FTC Act 5, 15 U.S.C. 45 4. High-Pressure Enrollment Tactics and Withheld Information School staff pressured me to sign enrollment documents and federal loan authorizations immediately, implying I could lose eligibility if I delayed. Material factsincluding full cost breakdowns and program limitationswere not disclosed until after loan origination. 

Such conduct violates : 34 C.F.R. 685.222 ( f ) 15 U.S.C. 45 Unfair and Deceptive Practices Had truthful information been provided, I would not have enrolled nor taken out federal loans. 



5. Financial Injury and Continuing Harm As a direct result of the schools deception, I incurred federal loan debt without receiving any actual employment benefit, licensure eligibility, or recognized professional value. 

The harm includes : Long-term financial hardship Credit damage Loss of time, opportunity, and earning potential This is the exact type of injury that Borrower Defense and the XXXX XXXX XXXXXXXX ruling were designed to remedy. 



Requested Remedy Under Borrower Defense and XXXX XXXX XXXXXXXX I respectfully request : Full discharge of all federal student loans associated with this program Refund of all payments made Permanent removal of related negative credit reporting Written confirmation of discharge and account correction Certification I declare under penalty of perjury that the information submitted in this statement is true and accurate to the best of my knowledge. 



Signature : XXXX XXXX Date : XX/XX/scrub>XXXX XXXX XXXX XXXX

Company response to consumer: Untimely response