Product: Student loan

I have three separate issues that I would like help with. I have done my best to summarize the issues below. 

Following the summary of the three issues, I have also included a full timeline of my loan including the context around the issues mentioned. 

Issues 1. - AES put my loan into some type of forbearance program and provided incorrect information about how this would affect my loan and payoff date. 

o In spring of XXXX, I called to ask some questions about the COVID payment and interest rate pause because I had had some financial setbacks due to a job loss and medical issues. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX that XXXX, but was still struggling to catch up financially. 

o I was told that the COVID payment pause would not be a good fit because my loans would still accrue interest. The AES rep recommended a program that would be better because it will lower the payments. I asked a lot of questions and was told that this would not change the due date, would not increase the amount due, and would not change the interest rate. 

o The following year, I noticed that the total amount of the loan was not decreasing. I located my payment records on the website and found that almost 100 % of the payments were going to interest only. 

o When I called AES, I was told that I was actually on a forbearance program. I dont think the rep in XXXX explained that. Even if I somehow misunderstood that part, she still did not answer some of the questions correctly. 

o The rep I spoke with in XXXX said there are documents on the website, but they were hard to find and apparently they do not stay on the site permanently. He emailed the information. The information shows that my payoff date has now been pushed out to XX/XX/XXXX. My loan amount has not gone down and I do not know if there will be other adverse ramification to my loan after being put on this program. 


2. - The information AES reports to the NSLDS and XXXX  about my student loan is incorrect. It shows I have two unsubsidized loans, but my larger loan is a subsidized loan. It also shows an interest rate of 4.88 % however my rate is 3.875 % and has been for close to 12 years. 

o I want to consolidate to direct federal loans and apply for PLSF temporary waiver that expires in XX/XX/XXXX since I have worked for an eligible non-profit since XX/XX/XXXX. 

o The incorrect information reported to the XXXX prevents me from consolidating my loans to direct federal loans and switching to a new servicer. The XXXX  representatives I spoke with said that I needed to get AES to correct the information they are reporting before applying to consolidate my loans with another servicer. Although the new servicer may receive the correct information from the old servicer ( AES ), its possible they may not. If they consolidate using the wrong information, they said it will be almost impossible to get it corrected after the loan consolidation is finished. 

o The higher interest rate and compounded interest added to my principle would make my payments considerably higher, would significantly increase the amount I have left to pay, and would push my payment timeline well into the future. The consolidation process rounds the percentage rate up from the reported interest rate. 

o I also can not use the XXXX payment plan calculator tool to choose a payment plan ( as required for the consolidation application ) because the higher numbers skew the proposed payment amounts significantly higher. 

o I have been contacting AES since XX/XX/XXXX and was told on more than one occasion that this has been taken care of, that they have submitted the correct information to the NSLDS, and that I would see updated, correct information on the XXXX website in five to 10 business days. 

o They never corrected the information as promised. XXXX  representatives recommended that I file a case with the Ombudsman about the incorrect information as well as the forbearance issue. 

o In XX/XX/XXXX I filed a case with the XXXX Ombudsman and uploaded supporting documentation. 

o The XXXX Ombudsman did not respond within the 10 business day timeframe. I finally received an email that just said that I would need to work with AES and that they have closed my case. The email was brief and only mentioned the interest rate issue and nothing about the forbearance or anything else. 

o I called the XXXX ombudsman and found out that the case had been sent to the AES ombudsman ( not AES ). They said that the AES ombudsman was required to respond via email within 10 business days. They said that if I did not receive a satisfactory response, I should call them back to appeal and reopen my case. 

o I did not receive any emails or communication from the AES ombudsman within the 10 business day timeframe. 

o On day 11, I received a vague voicemail from an unknown number that said This is AES and we are just calling to let you know that you can contact us anytime if you have a question about your loan. I was confused because the voicemail did not mention my case or if the caller was with the ombudsmans office. 

o Within 10 minutes, I called the number given on the voicemail only to discover it was the general AES customer service number. When got through the phone tree and the hold time, the customer service person was confused. He said that he could see that there was an outgoing call to my number, but there were no notes whatsoever in the system. He had no way to help or understand why someone had called me. He tried to track down the caller, but could not. I asked him if the call could have been from the ombudsmans office since a case had been sent to them. He put me on hold again and was then immediately able to track down the person who had called me. 

o He connected me to the person from the voicemail, but she seemed reluctant to provide any information or help. I had to ask twice if she was with the ombudsmans office and she finally admitted that she was. I learned that nothing had been done on my case. I explained my concerns about the incorrect interest rate reporting and the forbearance. She immediately said oh the interest rate was probably just a temporary incentive program. I explained that I had never heard the words temporary incentive program and that my loan had been at the 3.87 % fixed rate for well over the past decade. 

o She said there wasnt much she could do, but maybe send an email to check on it. I explained again that I wanted to look into the possibility of applying for the PLSF waiver, but that I couldnt consolidate and that I was running out of time. 

o She said that I did not need to worry about running out of time because I would be eligible to apply for the PLSF waiver as long as the consolidation process had been started. I explained that information was incorrect. You need to complete the loan consolidation process ( which can take months ) and then apply for the PLSF waiver before XX/XX/XXXX when it expires. She told me twice that was incorrect and that I did not need to worry about running out of time. I have since confirmed with the XXXX that her information was wrong. 

o I asked why they had not responded via email within 10 business days as required by the XXXX. She said that they had experienced technical difficulties and that her email was not working. I asked if they have a number and she did give me her phone number and extension ( it was a completely different number than the main customer service number she had left on my voicemail ). I asked if she could have them correct the loan reporting as they had promised and asked if she could email me back with an update. She said it would take time but that she would call the following week. 

o Within the next hour or so, I received an email that said : Good afternoon, I received a response regarding the interest rates on the National Student Loan Data System ( NSLDS ) website. NSLDS reflects the statutory interest rate and does not update due to rate reduction programs. In addition, the 4.88 % that is currently showing on NSLDS, is rounded to the hundredth place since the initial interest rate was 4.875 %. Because your current interest rate of 3.875 % is a result of an incentive program, when we receive the consolidation application the incentive would be lost and, the loan would be consolidated at the original rate of 4.875 %. 

Please let me know if you have any further questions. 

Thank you, XXXX XXXX AES Ombudsman Group o I do not know if this information is correct, but I do know that it is the opposite of what I had been told by AES on more than one occasion. Since the other information she gave me about PLSF was incorrect, I do not feel confident in the validity of the answer. 

o Furthermore, even if they refuse to allow me to keep the 3.875 % fixed interest rate, I still do not understand how they can report to the NSLDS and the XXXX that I am paying 4.88 % when I have actually been paying 3.875 % for the past 12 years. 

o I called the XXXX ombudsman that same day and they filed an appeal and reopened my case. The person I spoke with said that they would expedite the response since so much time had elapsed. Since this was a Friday afternoon, she said that I would receive a phone call from the XXXX ombudsman the following Monday ( XX/XX/XXXX ) or Tuesday at the latest. 

o It is now late XXXX and I have yet to receive a call, email, or any other communication from the XXXX ombudsmans office. When I tried to check on the XXXX website, I could not find an open case. 


3. - I would also like some clarification about my loan interest rate and payoff date. I am worried that there may have been discrepancies I missed in the past that could have affected my payoff date or amounts paid. 

o As Ive been researching more about my loans and payments, I found that my original Stafford loans consolidated back in XX/XX/XXXX all show an interest rate of 2.32 %. I do not understand how the original consolidation loan recommended by my schools financial aid office had a blended interest rate of 4.88 %. 

o Another confusing thing is that my loan schedule says that I am on extended select 2 which shows a term of XXXX payments ending on XX/XX/XXXX. I counted the number of payments I have made since the consolidation in XX/XX/XXXX ( not counting the two deferment periods, of course ) and I see XXXX payments. If you dont count the forbearance that they put me on in XXXX, it is still XXXX payments since XX/XX/XXXX. ( There were also payments made in XXXX XXXX, but Im assuming none of those factor into the equation or starting date. ) However, the most recent payoff date I can find now says XX/XX/XXXX and that I still owe {$20000.00} of the original {$32000.00} loan amount. The payments Ive made ( since XX/XX/XXXX ) total {$29000.00}, but {$15000.00} of that has gone to interest ( more than half ). 

o If I was on the extended select 2 repayment plan, then why have I made in excess of XXXX payments and why is my payoff date still so far away? If the forbearance plan payments they recommended in XXXX dont count, I should still be getting close. 

o I looked at the qualifications for the extended select 2 schedule and I dont see how I could have been put on that later since one of the requirements is that the person must have in excess of {$30000.00} outstanding on the loan. I have had less than that amount due since XXXX, so I would not have qualified after that point. 

o I am certainly not an expert in student loans, but the more I try to understand what I owe and when I will complete the loan payments, the more conflicting information I find. 

o If nothing else, I do not understand why my loan information is not being reported accurately to the XXXX 

XXXX XXXX XXXX made loan payments when I could not attend school due to work and other commitments. 

XX/XX/XXXX Graduated from continuing education program at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) XX/XX/XXXX Was advised by school financial aid office to consolidate loans XXXX XXXX XXXX XXXX XXXX XXXX XXXX so there would only be one payment with a blended interest rate that would lower the payment on some. The information I have shows that the consolidation loan had XXXX payments at 4.88 % with a payoff date of XX/XX/XXXX. 

XX/XX/XXXX XX/XX/XXXX loan payments. My understanding was that I was under the standard repayment plan. I was told on more than one occasion that I did not qualify for any other plan even though I had a single income and other debts ( school, medical, relocation, etc. ) XX/XX/XXXX XX/XX/XXXX deferment XX/XX/XXXX XX/XX/XXXX loan payments under the standard repayment plan. 

XXXX XXXX - Was struggling with payments due to financial and other hardships. Called on more than one occasion to inquire about payment plans, consolidating to direct loans per XXXX XXXX program, and other options. The interest rate was reduced to 3.875 %. I thought the loans had been consolidated to a federal direct loan. ( Upon a later inquiry in XX/XX/XXXX, I learned that the loans were actually never consolidated and were still under the old XXXX program. ) XX/XX/XXXX XX/XX/XXXX deferment XX/XX/XXXX XX/XX/XXXX payments under the standard repayment plan XX/XX/XXXX Struggling with payments due to job loss and other financial and medical setbacks. Called AES to ask some questions about the COVID program that temporarily suspended loan payments and interest. Was told that if I took part in that program, my loans would still accrue interest. 

They said I qualified for a program that was better because it would lower my payments and the interest would not accrue. I was skeptical and asked if lowering the payments would push the payoff date later. ( I explained that I was 50 and concerned about my ability to save for retirement if the loans are pushed out farther. ) I was definitively told no - that the payoff date would not get pushed later. I asked if the loan principle would still get paid off and I was told that it would. I asked if the interest would be higher and was told no that it would be the same rate I have now. I asked other questions like whether it would be a variable rate, if there would be some kind of balloon payment at the end, are there other issues I should be concerned about. I was told it would be the same rate I have now, fixed, no balloon payment, etc. ( I think this part was true. ) I said I didnt understand how I could just qualify for lower payments without any kind of catch and I was told I qualified for the program due to the amount of time I had been paying on the loan. I had been struggling to pay on the loan for around XXXX XXXX at that point, so I believed her. 

XX/XX/XXXX now loan payments under this new program XX/XX/XXXX I noticed that my loan amount did not seem to be decreasing. I looked online and downloaded the record of my payments and saw that all of those payments had gone almost entirely to interest. The principle was almost exactly the same as it had been in XX/XX/XXXX. 

Per someones advice, I contacted the XXXX and created an account on studentaid.gov. They said they could not help because my loans had never been consolidated to a federal direct loan and that I would need to work it out with AES. The customer service rep recommended that I consolidate the loans afterward and explained I would need to fill out an application with the XXXX  for that to happen. 
I called AES to ask why the loan amount was not decreasing and was informed that I was on a forbearance program. This customer service person ( XXXX XXXX was actually very kind and helpful. He explained that there were documents on the AES platform ( I was not aware of that ) but that they only remain on the platform for a certain amount of time. He sent me some information about the forbearance via email. He also recommended that I consolidate the loan to a federal direct loan. He asked about my employer and said that I may qualify for PLSF since I had been working for an eligible non-profit organization since XX/XX/XXXX. 

When I called AES in XXXX, I definitely did not understand the nature of the program the rep recommended and the ramifications were not explained accurately. It is possible she said the word forbearance and I didnt hear or understand her ( I dont think so, though ). Regardless, I asked many, very specific questions about whether this new payment program would adversely affect my loan, payoff date, or amount due in any way and she literally and cheerfully said nope! each time. 

In XXXX, it would have made more sense for the rep to advise me to consolidate my loans to direct federal loans, take part in the COVID payment pause, and apply for the PLSF program since I was now working for a non-profit. Instead, I made payments that went almost 100 % to interest and pushed the payoff date of the loan. As near as I can tell from the paperwork XXXX sent me, the payoff date of my loan is now XXXX, XXXX, XXXX! 

XX/XX/XXXX there was an announcement about a temporary waiver to count XXXX payments towards the PLSF program. I verified my current employer qualifies, but wanted to see if this program might help me to pay off my loans sooner. I also wanted to choose a new servicer because I was upset at the number of times I had been given confusing or incorrect information from AES. 

I tried to consolidate the loans on the studentaid.gov website, but you are required to choose a repayment plan using XXXX repayment calculator tool. I discovered that the payment calculations were much higher because AES has been reporting my interest rate to the XXXX as 4.88 %. My rate had been lowered in XXXX to 3.88 % fixed. They also reported that both loans were unsubsidized loans, however, the larger of my two loans is a subsidized loan. 

The XXXX  said they can not see this information and that AES would need to correct all of this before I could apply for a consolidation. I called AES and they confirmed that my rate was 3.87 % and that it would be corrected in five to 10 business days along with the loan type to subsidized. 

XX/XX/XXXX I contacted AES again because the information reported to the DOE had not been updated or corrected. They said that they could see that the ticket had been submitted and was still open. They said to give it another five to 10 business days and that I should see the correct information on the XXXX website. I explained each time that I wanted to consolidate and check into the temporary PLSF waiver to see if I might qualify and was worried about running out of time. 

XX/XX/XXXX- I contacted AES again because the information reported to XXXX had not been updated or corrected yet. They said that they could see that the ticket was still open and that it was with the NSLDS to make the correction on the XXXX website. 

They said to give it another five to 10 business days and that I should see the correct information on the XXXX  website very soon. I explained again that I wanted to consolidate and check into the temporary PLSF waiver and was worried about running out of time. 

I had also contacted the XXXX during this time and they had recommended that I file an ombudsman case if the matter is not resolved promptly. They cautioned me that I needed to get the reporting resolved very soon so that I could get the consolidation process started. 

XX/XX/XXXX None of the incorrect information was updated on the XXXX website. I contacted the XXXX  ombudsman phone number I had been given by the XXXX  reps. I explained the issues with the loan information being reported incorrectly and the forbearance. The person recommended that it would be better if I filed my case on the website instead of by phone because I could upload additional documents to support my case ( XXXX XXXX from the AES website showing my actual interest rate of 3.875 % with subsidized and non-subsidized loans, information showing the loan amount had not decreased since XX/XX/XXXX, etc. ) I offered to email these, but she said it would be better to file online. 

I filed the case online and uploaded as much documentation as they would accept ( it was limited ). It said I would hear something back via email in five to 10 business days. 

After the 10 business days had passed with no word, I finally received a brief email saying the XXXX Ombudsman had sent the issue to AES to be resolved and that my case was now closed. It only mentioned the interest rate and nothing else. There were no next steps or other clarifying information. 

I called the XXXX  ombudsman number and explained that AES had had many opportunities to resolve the issues and had repeatedly and deliberately failed to do so. I was at least able to learn that the case was with the AES ombudsman ( not just AES as the email had stated ) and that they were required to reply via email within 10 business days. 

I asked what I could do if they did not resolve the issue. I was told I could call to appeal the case and have it reopened. I again expressed my concern that I wanted to see whether I might qualify for the temporary PLSF waiver and was worried I was running out of time. The ongoing 10 business days was adding a lot of time. I explained that the XXXX had recommended that I consolidate asap as soon as the issues were resolved because the process can take months. 

XX/XX/XXXX 10 business days later. No word or communication from AES. 

XX/XX/XXXX I received a vague voicemail from an unknown number that said This is AES and we are just calling to let you know that you can contact us anytime if you have a question about your loan. I was confused because the voicemail did not mention my case or if the caller was with the ombudsmans office. 

Within 10 minutes, I called the number given on the voicemail only to discover it was the general AES customer service number. When got through the phone tree and the hold time, the customer service person was confused. He said that he could see that there was an outgoing call to my number, but there were no notes whatsoever in the system. He had no way to help or understand why someone had called me. He tried to track down the caller, but could not. I asked him if the call could have been from the ombudsmans office since a case had been sent to them. He put me on hold again and was then immediately able to track down the person who had called me. 

He connected me to the person from the voicemail, but she seemed reluctant to provide any information or help. I had to ask twice if she was with the ombudsmans office and she finally admitted that she was. I learned that nothing had been done on my case. I explained my concerns about the incorrect interest rate reporting and the forbearance. She immediately said oh the interest rate was probably just a temporary incentive program. I explained that I had never heard the words temporary incentive program and that my loan had been at the 3.87 % fixed rate for well over the past decade. 

She said there wasnt much she could do, but maybe send an email to check on it. I explained again that I wanted to look into the possibility of applying for the PLSF waiver, but that I couldnt consolidate and that I was running out of time. 
She said that I did not need to worry about running out of time because I would be eligible to apply for the PLSF waiver as long as the consolidation process had been started. I explained that information was incorrect. You need to complete the loan consolidation process ( which can take months ) and then apply for the PLSF waiver before XX/XX/XXXX when it expires. She told me twice that was incorrect and that I did not need to worry about running out of time. I have since confirmed with the DOE that her information was wrong. 

I asked why they had not responded via email within 10 business days as required by the XXXX She said that they had experienced technical difficulties and that her email was not working. I asked if they have a number and she did give me her phone number and extension ( it was a completely different number than the main customer service number she had left on my voicemail ). I asked if she could have them correct the loan reporting as they had promised and asked if she could email me back with an update. She said it would take time but that she would call the following week. 

Within the next hour or so, I received an email that said : Good afternoon, I received a response regarding the interest rates on the National Student Loan Data System ( NSLDS ) website. NSLDS reflects the statutory interest rate and does not update due to rate reduction programs. In addition, the 4.88 % that is currently showing on NSLDS, is rounded to the hundredth place since the initial interest rate was 4.875 %. Because your current interest rate of 3.875 % is a result of an incentive program, when we receive the consolidation application the incentive would be lost and, the loan would be consolidated at the original rate of 4.875 %. 

Please let me know if you have any further questions. 

Thank you, XXXX XXXX AES Ombudsman XXXX I do not know if this information is correct, but I do know that it is the opposite of what I had been told by AES on more than one occasion. Since the other information was incorrect, I do not feel confident in the validity of the answer. 
Furthermore, even if they refuse to allow me to keep the 3.875 % fixed interest rate, I still do not understand how they can report to the NSLDS and the XXXX that I am paying 4.88 % when I have actually been paying 3.875 % for the past 12 years. 

XX/XX/XXXX I called the XXXX  ombudsman and explained the situation. They filed an appeal and reopened my case. The person I spoke with said that they would expedite the response since so much time had elapsed. Since this was a Friday afternoon, she said that I would receive a phone call from the XXXX ombudsman the following Monday ( XX/XX/XXXX ) or Tuesday at the latest. 
It is now late XXXX and I have yet to receive a call, email, or any other communication from the XXXX  ombudsmans office. When I tried to check on the XXXX website, I could not find an open case. 

I do not know if the PLSF waiver or newly-announced IDR changes might help me to pay my loan off faster, but I do know that the incorrect information reported to the XXXX prevents me from consolidating to a new servicer. The higher interest rate and compounded interest added to my principle would make my payments considerably higher, would significantly increase the amount I have left to pay, and would push my payment timeline well into the future. If nothing else, I do not understand how it could be legal for my current loan and interest rate payment information to be reported incorrectly to the XXXX I also do not think it is ethical or fair that AES would try to prevent me from changing servicers by refusing to report the actual interest rate I have been paying for close to 12 years.