They can. When a loan moves to a new servicer, the old servicer's account usually stays as history and the new servicer opens its own. That is normal, but only the current servicer should show a balance; two balances for the same loan can be inaccurate.
Federal student loans are frequently moved between servicers such as Navient, Nelnet, and MOHELA, and private loans can be sold or transferred too. Each transfer can create a new tradeline on your credit report.
What a correct transfer looks like
- The old servicer’s account shows as closed or transferred, with a $0 balance.
- The new servicer’s account shows the current balance and payment status.
- Your payment history should carry over accurately. Payments made on time to the old servicer should not appear as late on either account.
Seeing both accounts is normal. The problem is when both show a balance, which can make it look like you owe roughly twice as much as you do.
Other common transfer errors
- Late payments reported during the changeover when you paid the old servicer on time
- A loan in deferment, forbearance, or an income-driven plan reported as past due after the transfer
- Each individual loan in a group reported twice, multiplying the error
Why it matters
Furnishers may not report information they know or have reasonable cause to believe is inaccurate, and must correct information they learn is inaccurate or incomplete. Regulation V also requires furnishers to maintain written policies and procedures for accurate reporting, which includes how they handle transferred accounts.
What to do
- Log in to StudentAid.gov to confirm which servicer holds each federal loan.
- Compare the balances on each tradeline with your servicer statements.
- Dispute duplicate balances or false late payments with each credit bureau, attaching the transfer notice and payment records. The bureau must forward the dispute to the servicer, which must investigate.
If duplicate student loan balances or transfer-related late payments remain after you dispute, a free case review can help, with no fee unless we win.
Related
Sources
- 15 U.S.C. § 1681s-2(a)(1)-(2) and (b) (Cornell LII)
- 12 CFR § 1022.42 (eCFR): furnisher accuracy and integrity
- CFPB: Repay federal student loans
Updated November 2026. This page is general information, not legal advice.