At least 1.4 million student loan borrowers have a discrepancy on their credit reports that inaccurately shows they owe double the actual amount. Education Department addressing error affecting 1.4 million, but permanent fix will take time.Did our AI help? Share your thoughts.religiously checking her credit report. Everything seemed in order until April last year, when she noticed a glaring discrepancy with her student loans.
When the discrepancy didn’t disappear after a few months, Pimentel filed a dispute in February with the credit reporting agency Experian, which she said told her the servicers were reporting the loan accurately and nothing could be done. She then reached out to Nelnet and was told to contact MOHELA, who told her to contact Nelnet. Instead, she filed complaints against all three companies with the Consumer Financial Protection Bureau.
Now, the Education Department wants the servicer receiving the student loan to submit a file — known as an L1 segment — to the credit agencies signaling the debt transferred from another servicer and the prior history should be retained.
“It is so demoralizing that despite never missing a payment and getting all of my finances in order, I’ve been stuck in this position,” Pimentel said.Weston Loehr, a doctor in Virginia, learned of the duplication error after noticing a $600,000 balance on his credit report in September. He initially thought it was a mistake in the app he used to review his credit, but Experian confirmed that two separateeventually filed an unsuccessful dispute with Experian.