FAFSA loan servicer reporting me delinquent despite active repayment plan - legal options?

This definitely sounds like something you could pursue legally. What you're describing is a violation of the Fair Credit Reporting Act. If they've set up a new repayment plan and you're making payments as agreed, they have an obligation to report your account correctly to the credit bureaus. Before filing a lawsuit though, I recommend these steps: 1. Send a formal dispute to all three credit bureaus (Equifax, Experian, TransUnion) 2. Send a written request (certified mail) to the loan servicer asking them to correct the reporting 3. File a complaint with the Consumer Financial Protection Bureau (CFPB) 4. File a complaint with Federal Student Aid Ombudsman Document EVERYTHING - dates of calls, names of representatives, copies of letters, screenshots of your auto-debit payments, etc. This will be crucial if you need to take legal action.

omg same thing happened to me last year!!!! i was making payments on time and they STILL wrecked my credit. took me like 6 months to get it fixed. make sure ur not confusing ur servicer with sallie mae though - sallie mae does private student loans not federal ones. FAFSA loans go through servicers like nelnet, great lakes, etc.

I dealt with almost identical situation last year. After 5 months of calling and getting nowhere, I tried using Claimyr (claimyr.com) to reach an actual FSA agent who could help. They got me connected in under 10 mins when I'd been trying for weeks to get through. The agent I spoke with opened an official investigation into the servicer's reporting practices, and they fixed my credit report within 30 days. You can see how it works in their video demo: https://youtu.be/TbC8dZQWYNQ Definitely file those CFPB complaints too as others suggested - that creates an official record. But getting to an actual FSA agent who can intervene with your servicer makes everything move 10x faster.

Sorry your dealing with this!! IANAL but this sounds like a violation of the FCRA and possibly FDCPA. You might want to post in r/legaladvice too. Did they send you ANY written confirmation of your repayment program? Emails, letters, anything? Without written proof its going to be tougher to prove.

This is a textbook case of what's called "furnisher violations" under the FCRA. As someone who's helped numerous clients with similar issues, I can tell you that loan servicers have specific legal obligations for credit reporting accuracy. To pursue this effectively: 1. Under Section 623 of the FCRA, if you dispute the information directly with the servicer (which you have through your calls), they must investigate and correct inaccurate information. 2. File detailed disputes with the credit bureaus specifically citing your repayment plan agreement and citing "account included in repayment plan" as the correct status. 3. The CFPB complaint is crucial - they take servicer reporting issues very seriously for federal student loans. 4. Consider speaking with a consumer rights attorney who specializes in FCRA violations. Many offer free consultations and take cases on contingency. These servicers fix these issues quickly when legal pressure is applied because the statutory damages under FCRA can be substantial.

not tryin to be a jerk but isn't it possible the repayment program you agreed to over the phone was just to get your account current but doesn't address the previous late payments? that would explain why they're still reporting bad history. have you pulled your actual credit reports to see exactly what they're reporting?

I worked at a student loan servicer for 2 years, and this sounds like a system error on their end. When you're placed on a new payment plan, sometimes the automated credit reporting system doesn't get updated properly to reflect the new status. What likely happened is your account was flagged as delinquent, you got put on a new plan, but the system that handles credit reporting wasn't properly updated to reflect the change. The department taking your money (auto-debit) is separate from the department handling credit reporting. You need to specifically ask to speak with someone in their credit reporting department or team. Most call center reps won't even know this team exists. Be persistent and specifically request a "credit reporting investigation" or ask to speak with a "credit reporting specialist." They can issue a rapid rescore request to the credit bureaus that should fix this within 2-3 weeks.

THIS IS WHY I TELL EVERYONE TO AVOID STUDENT LOANS!!! The whole system is RIGGED against borrowers!!! I had $45k in loans and they somehow ballooned to $68k even though I never missed a payment! These companies are PREDATORY and the government LETS THEM GET AWAY WITH IT!!!!

Quick update based on other responses: Since you confirmed these are federal student loans (not private), you have additional protections. Contact the FSA Ombudsman Group specifically - they're designed to resolve disputes between borrowers and loan servicers. Their contact info is: https://studentaid.gov/feedback-ombudsman/disputes/prepare Also, federal student loan servicers are required by their contracts with the Department of Education to maintain accurate credit reporting. This gives you additional leverage beyond just the FCRA protections.