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i disputed the reporting of Fedloans to all 3 credit bureau. I contacted Fedloans Services and they said they no longer service my loan. My loan was given to Allied Interstate and I making my payments. Why then can Fedloans Services continue to report my loan. I disputed it and Transunion says it's resolved and stays on. That's double reporting on same loan
The historical information from when Fedloan did hold your loan will remain on your report until it ages off. The entry from Fedloan should indicate that it has a $0 balance, is closed, and what happened to the loan (for instance, transferred or refinanced, depending on the exact circumstance).
How can 2 agencies report the same loan?
Because your loan was held by one agency in the past (so they can report the information that they know about the loan - when it was opened, when it was closed, what your payment history was while they held it, what happened when the loan was closed), and is now held by another agency (who can report all of the same things, but only for the time period they had the loan).
Fedloan should report that your loans with them have a $0 balance, and mark them as "paid/transferred/refinanced" or similar, depending on exactly why you have a new servicer. Your credit report is not just a reflection of your currently open accounts, it also provides historical information for the past 7-10 years.
Thank you very much