Consumer complaint received 2025-12-27 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: Servicer under contract with Federal Student Aid
State: PA

Complaint narrative:
Formal Request for Loan Discharge & Urgent Dispute of Servicing Errors Subject : Formal Dispute of Debt & Notice of Credit Reporting Violation Institutions : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Loan Servicer : XXXX Account Number : [ Your XXXX Account Number ] To the Department of Education and XXXX Compliance : I am writing to formally dispute my student loan debt totaling approximately {$71000.00} and to request a full discharge based on institutional misrepresentation. Furthermore, I am filing an urgent dispute regarding XXXX  failure to honor my forbearance and the subsequent damage to my credit and employability.

I. Basis for Discharge : Institutional Misrepresentation My experience at XXXXXXXX XXXX XXXXXXXX was defined by predatory tactics and fraud. I am requesting a full discharge under Borrower Defense to Repayment due to the following : Misleading Job Placement & Local Non-Recognition : I was promised local job placement assistance, yet upon graduation, I discovered that most counties in my area do not recognize these credits or degrees. This rendered my technical training unusable and prevented me from obtaining the employment I was promised.

Credit Transferability : The schools misled me regarding the transferability of credits. I am unable to continue my education elsewhere without starting over, as other accredited institutions do not recognize the coursework.

Financial Irregularities : There is a clear pattern of tuition overcharging and mishandling of federal refund checks. A {$71000.00} debt for the substandard, self-instructed education I received is unconscionable and disproportionate.

Instructional Failure : Despite high tuition costs, instructors failed to provide actual teaching, forcing students to self-instruct while administration ignored all complaints regarding staff incompetence.

II. Servicing Errors & Balance Fluctuations ( XXXX to XXXX ) Following the XX/XX/year> transfer from XXXX to XXXX, my account has been handled with gross negligence : Balance Discrepancies : I was verbally assured by XXXX representatives that my balance would remain identical to my FedLoan records. Instead, my balance has fluctuated and increased without authorization or disclosure. I only discovered these changes via third-party credit monitoring. 

Violation of Forbearance : I officially placed my loans into forbearance, yet XXXX has failed to apply this status to all loan sequences. I am being billed {$62.00} per month on accounts that should be paused.

Credit & Employment Damage : XXXX is incorrectly reporting me as " delinquent '' for these {$62.00} payments. This reporting has severely damaged my credit score, which is actively preventing me from passing employer credit checks and securing work in my field. You are effectively blocking my ability to earn a living through systemic administrative error.

III. Demanded Actions Administrative Forbearance : Immediately place all loan sequences into administrative forbearance while this Borrower Defense claim is investigated.

Credit Correction : Issue an immediate retraction of all negative marks to XXXX, XXXX, and XXXX. 

Full Audit : Provide a complete ledger of accounts from XX/XX/year> to the present, explaining the unauthorized balance increases. 

Full Discharge : Initiate a full investigation into the fraudulent practices of XXXX XXXX XXXXXXXX for a total discharge of this debt. 


Sincerely, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Untimely response