Student loan -- Dealing with your lender or servicer -- Complaint #17903077
Complaint Overview
Complaint ID: 17903077
Company: Servicer Under Contract With Federal Student Aid
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-Issue: Received bad information about your loan
State: California
ZIP Code: 92571
Date Received: 2025-12-09T12:00:00-05:00
Date Sent to Company: 2025-12-09T12:00:00-05:00
Company Response: Untimely response
Timely Response: No
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
On XX/XX/XXXX, I logged into my IRS account to check the status of my amended refund and saw a transaction code showing my refund was applied to a non-IRS debt. This was the FIRST time I learned anything about an offset. I immediately called the Treasury XXXX XXXX ( XXXX ), and the automated system informed me that my refund had been sent to the U.S. Department of Education ( DOE ). I received no advance notice whatsoever. My XXXX federal tax refund was taken on XX/XX/XXXX without the legally required XXXX Notice of Intent to XXXX. Under 31 U.S.C. 3716 ( a ), 31 C.F.R. 285.5, and 34 C.F.R. 30.22, DOE must send a current written notice BEFORE each offset year, giving borrowers updated debt information and the opportunity to dispute or request a hearing. Because I received no notice, I was denied all due-process rights. Later that same day ( XX/XX/XXXX ), I contacted DOEs Default Resolution Group. DOE staff admitted that the ONLY notice they claim to have issued was from XXXX. A notice from XXXX does NOT authorize a XXXX offset. Federal law requires new notice before EACH tax year an offset occurs. DOE representatives gave incorrect and misleading information : One said, Theres nothing you can do now. Another said, A notice from XXXX still goes into effect. A supervisor ( XXXX, XXXX XXXX XXXX ) incorrectly said refunds cant be returned unless facing eviction or foreclosure. The supervisor also said HIPAA prevents them from updating addresses, which is completely irrelevant to federal student loan servicing. Staff suggested email notice could apply, but I received no email either. The Treasury XXXX letter I eventually received was mailed to my correct address, proving IRS/Treasury had my updated address. DOE failed to use the same federal address databases, violating due process ( XXXX v. XXXX ).
Frequently Asked Questions
What is Complaint #17903077 about?
Complaint #17903077 was filed against Servicer Under Contract With Federal Student Aid regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2025-12-09T12:00:00-05:00.
How did Servicer Under Contract With Federal Student Aid respond to this complaint?
The company responded with: "Untimely response". The response was not timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Student loan) and describe your issue in detail.
Can I see other complaints against Servicer Under Contract With Federal Student Aid?
Yes, visit the Servicer Under Contract With Federal Student Aid company profile at readthecomplaint.com/company/servicer-under-contract-with-federal-student-aid to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.