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Imagine taking out $55,000 in student loans, only to wake up one morning showing a $0 balance. While any graduate would be over the moon being free from student loans, that's not what happened next.
As reported by Business Insider, Ashley Carlson took out $55,000 in student loans to pay for her construction management degree. (1) When business at her architecture firm slowed in 2023, she paused her $800 monthly payments in full. Carlson had called her loan provider, SoFi, requesting lower payments or a financial hardship forbearance, which would temporarily suspend payments. (2) She had no such luck.
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Until she logged into her account in February 2024 and saw the $0 balance, which she accepted, assuming it was her request — just delayed. Ten months later, however, Carlson got a nasty surprise in the mail from SoFi. She was being sued.
Forgiven? Not so fast.
Carlson loans had disappeared because they'd been transferred to a third party, according to the article. (1) She still doesn't know where her balance went. Private student loans, such as SoFi, typically default after 90 t0 120 days. (3) Without a formal forbearance, deferment or revised plan approved, it moves into default without payments.
Business Insider discovered hundreds of loan transfers, missing or erroneous documentation or confusion around obtaining payment status updates. A SoFi spokesperson told Business Insider that they had called and emailed Carlson with options for curing her delinquency, then the third party took over once she defaulted.
Once collections is pursued, it's not unusual for individuals to lose access to their accounts, adding to the complexity.
The collective confusion around student loans has only increased in recent years — with Joe Biden's promises to forgive student loans to Trump's repayment overhaul that will come into effect July 1, 2026. (4)
Student loan difficulties are up, with new data showing 3.62 million Americans have defaulted since January 2025. (5) According to January's Consumer Financial Protection Report, for the year ending June 30, 2025, the Bureau received approximately 4,500 private student loan complaints (6) — a 33% year-on-year increase. Over half (58.7%) of issued complaints were for "dealing with your lender or servicer." (6)
Revisit and revise your loans
Carlson's story is certainly not an isolated one.
Judge Annette Berry was cited in the Business Insider article saying she's seeing this happen more and more.
"They're going after people for unpaid student-loan debt — and, so, if you think you're the only one, you're not," she said.
While alarming, other student scenarios serve as a good reminder to spend time getting up to speed with your loans.
If you have student loans, check your balance once a month, make sure all lines of communication are open and checked (phone, email, physical mail, etc.) and know your rights and responsibilities. Always follow up on missed calls and check your spam folders.
With the upcoming repayment overhaul, now is the time to revisit your student loans. As part of your financial hygiene, it's worth looking into student-loan refinancing from time to time, too. Check everything — more than once.
And remember: If something seems too good to be true — like seeing a $55,000 debt drop to $0 — it probably is.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Business Insider (1); Federal Student Aid (2); SoFi (3); PHEAA (4); Protect Borrowers (5); Consumer Financial Protection Bureau (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
