A Stranger Took Out Federal Student Loans In My Name

Location: Virginia

I passively checked my credit report and history recently and found two student loans attached to my identity. I looked at them through the loan servicer (which happened to be the one I had for my student loans years ago, which were paid off in 2023), and found that they were direct subsidized and unsubsidized loans for a school in a different state (Texas).

I disputed the loans as fraud with the credit reporting companies and the loan servicer, filed a complaint of identity theft with the FTC, and filed a police report where I live. While my loan servicer account didn't seem to have been hacked, my address had been changed and another phone number had been added (I'm assuming based on information on the fraudulent loan application). The loan servicer did not contact me about these changes at any time to confirm. I changed my password just to be safe, took screenshots of the fraudulent info, and then changed my contact info so they couldn't intercept any (more?) communications.

It occurred to me they must have filled out a FAFSA to get these loans, so I went to student aid dot gov. I didn't have an account, because the website didn't exist when I took out my loans, but someone had created an account with my information. I was able to claim the account by sending a picture of my driver's license (which seems to be more rigorous than anything happening up to that point), and I promptly updated my user id, password, etc. I took screenshots and downloaded everything I could.

The thief had filled out two FAFSA forms, one for me as a student and one for me as a parent contributor to another person (who's identity was also likely stolen). The information was very wrong and does not match major details of my life - for starters, I don't have any children, have never lived in the state of Texas, and my marriage status was incorrect. They just checked the box that says it's different than my tax returns. I submitted "feedback" to the department of education and they put a fraud alert on my account.

These loans were disbursed to the school listed for fall and spring semesters of this school year, though I am obviously not attending.

When I first discovered this issue I was in problem solving mode, but now I'm angry. There were so many points at which this should have been prevented and yet it wasn't. This person was able to get federal dollars with my identity and not once was there any red flag. The FAFSA forms were submitted and approved in two days. The icing on the cake is that I'm a federal employee, and my information was leaked in multiple data breaches. So the government is doubly responsible for this mess.

I want to sue. Is that viable?