Student loan servicing errors are common and damaging
Student loan credit reporting errors are among the most frequent consumer complaints received by the CFPB. The federal student loan system has seen massive servicing disruptions: multiple servicer transfers (FedLoan to MOHELA, Navient's exit, the creation of StudentAid.gov), extended pandemic forbearance, the transition of income-driven repayment plans, and the complexity of loan consolidation.
Each of these transitions creates reporting gaps and errors. Consumers sometimes find their student loans reported as delinquent during periods they were in official forbearance, or loans incorrectly reported after a servicer transfer, or consolidation loans appearing as new defaults.
Types of student loan reporting errors
Servicer transfer errors: When a loan moves from one servicer to another (FedLoan to MOHELA was one of the largest), errors frequently occur:
- The old servicer may continue reporting the loan after transfer
- The new servicer may report the loan as newly opened, affecting average account age
- Payment history from the old servicer may not transfer to the new servicer's reporting
- Duplicate accounts may appear for the same loan under both servicers
Forbearance and deferment reporting errors: Federal student loan borrowers had pandemic-era forbearance from March 2020 through late 2023 for most borrowers. During that period:
- Loans should have been reported as current, not delinquent
- No interest should have been accruing on most federal loans during the suspension period
- If your account shows late payments during this window, that's a reporting error
Income-driven repayment (IDR) plan applications, processing delays, and recertification gaps can also result in accounts being incorrectly reported as delinquent when a new IDR plan was pending approval.
Incorrect deferment status: If you're in school (in-school deferment), in economic hardship deferment, or other approved deferment programs, the loans should not show as delinquent. If they do, that's a servicer error.
Consolidation errors: When loans are consolidated through a Direct Consolidation Loan, the original loans should be marked as "transferred" or "paid/closed via consolidation." They should not show an outstanding balance. The new consolidation loan appears as a new account. Errors occur when old loans remain as open with balances after consolidation.
Balance and interest capitalization errors: If a servicer capitalized unpaid interest onto your principal balance (which occurs in certain IDR transition situations), the new higher balance must be correctly reflected. Reporting the old balance after a capitalization event is a discrepancy.
Where to pull your student loan history
Before disputing, gather:
- Your StudentAid.gov account — shows all federal loans, servicer assignments, payment history, and current status. Create an account at studentaid.gov if you haven't.
- Your current servicer's portal — shows account-level payment history and correspondence.
- Account statements from previous servicers if you have them.
Cross-reference your StudentAid.gov records against what appears on your credit reports.
How to file the dispute
Step 1: Identify the discrepancy precisely. For example: "MOHELA is reporting a 30-day late payment for September 2022. According to my StudentAid.gov records, my account was in administrative forbearance during that period. The payment history should show 'OK' for September 2022."
Step 2: Gather documentation. Pull the forbearance or deferment confirmation from your servicer portal or from the correspondence you received. StudentAid.gov shows forbearance periods. Download what you need as PDF.
Step 3: File with the bureaus. Dispute the specific payment history field at each bureau where the error appears. Attach your documentation. File by certified mail for complex disputes.
Step 4: File a direct dispute with the servicer. Each servicer has a credit reporting dispute process. MOHELA, Aidvantage, Nelnet, and EdFinancial all have contact channels for credit reporting issues. Search "[servicer name] credit reporting dispute" for the current address. Servicer direct disputes are often effective because servicers have direct access to the account history and forbearance records.
Step 5: File a CFPB complaint if needed. The CFPB has been particularly active on student loan servicer complaints. A complaint against your servicer for a reporting error carries weight. File at consumerfinance.gov/complaint and select "Student loan" as the product.
COVID-era payment reporting — a special case
Federal student loan borrowers whose accounts show late payments during the March 2020–October 2023 federal payment pause may have grounds for dispute. The CARES Act and subsequent executive actions paused payment requirements. Accounts that were current entering the pause should have been maintained as current throughout.
If your servicer reported a late payment during this period, dispute it citing the payment pause period and documentation of your account's status at the time.
Your next step
Log in to StudentAid.gov and pull your loan history. Pull your credit reports from all three bureaus. Compare the payment history for each loan side by side. Any month where your StudentAid.gov records show in forbearance, deferment, or current — but your credit report shows late — is a dispute. File with the bureau and simultaneously with the servicer. Use certified mail and attach your StudentAid.gov records.