Product: Student loan

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, OR XXXX XXXX XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXXXXXX XXXX, IA XXXX TO WHOM IT MAY CONCERN : I am filing a complaint with the Consumer Financial Protection Bureau against Premier Student Loan Center. Basically, I fell for a third Party Student Loan Scam and am now enrolled in a student loan option I would not have considered had I done my homework. But I didnt. I got caught up in the sales pitch and overlooked the obvious. 

On XX/XX/XXXX or XXXX of XXXX I received a call from XXXX XXXX, a student loan advisor with Premier Student Loan Center. I rarely engage in conversation with telemarketers however tackling my student loan was my next financial priority to tackle so I listened a bit to his spill. For whatever reason I bought into his program, especially because he relied heavily on his companys partnership with the Oregon Department of Education and a loan forgiveness program. The focus of the conversation was The Department of Education offering individuals nearing retirement, who were making regular payments and not in forbearance, a forgiveness program that spread affordable payments over a 20 year span with no accumulating interest. 

The conditions of the agreement includedbased upon my eligibilityforgiveness in the amount of {$7800.00} on my student loan balance of {$39000.00} with a new account balance of {$31000.00} and zero interest. My new monthly payment of approx. {$120.00} would be spread over 240 months. To enter into the program I agreed to 5 payments in the amount of {$230.00} ( a good faith holding fee ) {$1100.00} totaland XXXX XXXX XXXX XXXX would pay off my current balance of {$39000.00} and set up my new loan documents for {$31000.00} owed and zero interest spread out over 20 years through the Department of Education. My new low monthly payment of {$120.00} would begin on XX/XX/XXXX. 

I sent my proof of income to XXXX and he called me back with a qualifying monthly payment of {$120.00} for 240 months, minus the {$1100.00} holding fee, and zero interest based on my monthly income. I agreed to the terms and electronically signed Premiere Student Loan Centers document preparation and service agreement on XX/XX/XXXX. 

Over the next few weeks I felt uneasy and emailed XXXX to express my fears. He returned my calls always reassuring me that I needed to trust the process and then he would walk me through the agreement as stated above. I will upload supporting documentation in the forms of our emails strings, the Premiere Student Loan Center Service agreement and my new XXXX account loan document. I do have a recording of a conversation I had with XXXX on XX/XX/XXXX, and the transcript of that conversation is included in this letter. 

On XX/XX/XXXX I received an email from XXXX XXXX, Processing Department SL Account Management with login information to my new service provider, XXXX. When I pulled up my account information I was furious and disheartened. I am now enrolled in an income driven student loan program with an outstanding principal balance of {$40000.00}, an interest rate of 5.75 %, and estimated interest accrual over loan term of {$15000.00}, and overall total to be repaid is {$55000.00}. 
I received a letter from XXXX XXXX dated XX/XX/XXXX that my account of {$43000.00} was paid in full. I felt very stupid and sent an email to XXXX and XXXX asking for an explanation. 

From : XXXX XXXX Sent : Friday, XX/XX/XXXX XXXX XXXX To : XXXX ; XXXX Cc : XXXX ' XXXX Subject : RE :  Final Approval - Please Read Importance : High XXXX and XXXX , I just logged into my XXXX student loan account and have discovered that indeed my balance of $ 40,000+ is more than when I spoke with XXXX the first time NOT the {$32000.00} something that was discussed with XXXX when I agreed to do this program..the deal was an {$8000.00} or so forgiveness from my {$39000.00} balancewith a new loan of {$32000.00} or sopaying like {$90.00} a month for 30 years.and no interest. I dont have my notes with me but the figures should be close. 
Have I been bamboozled? I think so. 
Please explain. A phone call would be nice. Is there additional documentation you can provide? I dont recall having signed anything other than the attachment I am including. 




Sincerely, XXXX XXXX XXXX XXXX XXXX did not reply to my email but XXXX arranged a phone conversation with me on Monday, XX/XX/XXXX, again reassuring me that I needed to trust the process and he walked me through the initial agreement as stated above. He also asked me to contact him directly with any questions or fears as he was my dedicated representative and would handle any and all my concerns. He said the XXXX account was a marketing ploy and not to make any payments to them so as not to jeopardize my forgiveness program. He asked me to ignore any correspondence from XXXX and to send him any mail or electronic correspondence from XXXX and he would handle it. He stated that I would have a new account through the Department of Education that would go into effect on XX/XX/XXXX with a first payment due on XX/XX/XXXX. I was becoming more and more skeptical and fearful, but I was so deep into the process that I wanted it to be legitimate and not admit to myself that I had fallen for a scam so I decided to stick to the plan and see how it would play out. Deep down inside I knew I had made a terrible mistake and felt very ashamed. 

Several email exchanged followed including this one dated XX/XX/XXXX : From : XXXX [ mailto : XXXX ] Sent : Wednesday, XX/XX/XXXX XXXX XXXX To : XXXX XXXX XXXX Subject : STUDENT LOAN FORGIVENESS DETAILS/SPECIFICATIONS/PROCESS XXXX, Your student loan forgiveness program is assigned as described below. 
Your first 5 monthly payments are {$230.00} beginning with your first payment which was on XX/XX/XXXX and ends on XX/XX/XXXX. Your Loans will then be completed with the consolidation process as well as the continuation of securing your new balance which at that point will be {$9300.00} and will be transferred to XXXX XXXX. Your loan balance will reflect as {$0.00} paid in full at the end of your term. Your XXXX account will be inactive and closed down and no further correspondence will be necessary with XXXX. If you have any other questions or need any further documentation other than the other 2 documents as well as this please call my direct line and I would be more than happy to do so. 
XXXX XXXX PREMIER STUDENT LOAN CENTER Direct XXXX Fax number XXXX XXXX XXXX XXXX : XXXX XXXX  Email confidentiality notice ***** Id like to note that XXXX does not have a direct line. Each time I called the number I was transferred to Customer Service Dept. to leave a message. 

On XX/XX/XXXX I reached out to XXXX because I was receiving statements and from XXXX requesting payments of {$71.00} starting XX/XX/XXXX. He returned my phone call and I recorded the conversation. I will include the transcript* at the end of this letter. I made a list of topics to go over with XXXX that included asking him why I had not received any mail correspondence that reflected our original agreement, which he replied that his company only communicated electronically. I asked him to send me our initial agreement in writing via email. He responded with a very vague email and an inaccurate loan balance number. I also discussed my concern with him regarding the XXXX account and would my not paying the monthly installments affect me negatively. His response was the same as our previous conversations that XXXX was an unprofessional company using marketing tactics to scare me into making a payment and any monies they received would lock me into a long term agreement. He straight up told me to ignore the XXXX correspondence and that at the end of my 5 month payments the XXXX account would become inactive. He reiterated that XXXX and XXXX were unprofessional that my new account would be established with XXXX XXXX or XXXX who were legitimate companies. It was after this phone call that I began to realize that I was enrolled in an Income Driven Consolidation Loan and not a forgiveness program. My disappointment in my own judgement became overwhelming.

I had two payments left to make to Premiere Student Loan Services and I paid them. On XX/XX/XXXX I emailed XXXX to make sure my new program with a new service provider would go into effect on XXXX XXXX. He emailed me and said he would be escalating my profile to upper management to fix the communication process with them immediately. I didnt know there was a communication problem. Not surprisingly I did not hear from XXXX after that communication. After several unsuccessful attempts to reach XXXX via email and phone I called Customer Service and spoke with an XXXX XXXX who informed me that my account status with XXXX was current and accurate and that I should contact them and make payments. Which I did. 

XXXX also put me in contact with manager XXXX XXXX. Mr. XXXX called me to hear my concerns, informed me that XXXX XXXX was no longer with the company and that my new status was with my XXXX account. He immediately credited my XXXX credit card for the {$1100.00} charged by XXXX XXXX,  however, I am now paying on a student loan that is income driven with lower monthly payments but accumulating interest ( 5.875 % ) at a fast pace. The daily rate is {$6.00} which if I calculate correctly ( {$6.00} x 365 ) equals {$2300.00} annually. Multiple this times 20, if I continue to be eligible every year, and the interest accumulated is an additional {$46000.00}. At the end of this program, if I am eligible for the 20 duration, any forgiveness at the end of the term is likely to be taxable income. This is a time in my lifeI am XXXXthat I am scrambling to build a retirement plan. This particular loan program jeopardizes my financial stability for the next 20 years. 


* Recorded phone call with XXXX XXXX. On XX/XX/XXXX I recorded the following conversation with XXXX XXXX so I could better recall the details. 

XXXX : I received your email from XXXX okay. I already read over the email from XXXX. What kind of questions do have in regards to that email? 

XXXX : Well, I guess I get nervous every time I get something from them. Especially when it says, you know, immediate response. Uhm XXXX : Okay. So, the thing is theyve been notified. Theres two, theres two services, theres two services being XXXX and XXXX. XXXX is actually worse, they are by far the worst. But, both of these services are going to constantly contact you a lot more than the two actually legitimate services, which would be XXXX XXXX and XXXX. XXXX, is really the only, ( inaudible ) in my opinion, the only legitimate one. And what happens is they are going to constantly contact you because at that point what they are going to do is once you start paying them again they are going to offer you a program, they are going to offer you a different program and it, it is not going to be effective because it will be with the same balance that you had before. 

XXXX : Okay XXXX : Does that make sense? 

XXXX : Yes XXXX : In a way, I I, this is very shady of them to do it, it is almost like a marketing strategy like you know oh this is urgent call right now, we need you to call right now because then they have you on the hook. Right? 

XXXX : Okay, so Im glad I never called them. 

XXXX : Yeah, so that, that, that, that honestly thats just a tactic and you know and ugh in a twisted sick way I guess it is smart you know but its not, its not ethical considering the circumstances, um its just to get your attention essentially so that you can see what theyre, you know what theyre trying to do with your loans. And XXXX is notoriously known for the emails and their interest rates, ugh which Im sure you saw yours go up pretty significantly or they are asking you for a high monthly payment in the beginning, which was the case, in your case correct? 

XXXX : Yeah, they offered me {$71.00} till like XXXX and then it was {$400.00} if I did indeed qualify for every year or whatever. 

XXXX : Right. Did you, did you ugh, when you made {$71.00} payments was your income the same as it was when it was {$400.00}? 

XXXX : Then they would evaluate in the spring is what their their paperwork says. 

XXXX : So if you, if you basically, for your income to change, um did your income go up from when you were making the {$71.00} payments all the way up to XXXX : Oh, I, I never made those payments those are the ones that they were, that they are asking me to make now. 

XXXX : Oh, okay. Okay, I just wanted to make sure that wasnt in the past. Yeah I know I understand that they are asking you for that now. So what happens, that kind of shows you why, why ugh, people are leaving XXXX, were leaving XXXX and companies like that because they ask you for a low monthly payment like that and then all the sudden they go to recertify and you and they say now your income driven program is this amount. Which obviously makes no sense. So when your income is around {$60000.00}, being around {$60000.00} and they should have been asking you for, um, you know, a higher payment from the beginning to chip away at that balance. And it shouldnt have been anywhere {$400.00} it should have been somewhere in the middle of what the {$70.00} they are asking for and the {$400.00}. 

XXXX : So I guess what I am confused about is that, um, the processor, XXXX, hes the one who sent me that information for my account with XXXX. 

XXXX : Right. Let me see here. Its going to be. Im looking at the email you forwarded over. Im just verifying really quick, I already looked this over. Your fourth payment being on the XXXX. Okay so thats thats what it is what you qualified for, as far as your reoccurring payment, so right now you are three payments in correct? 

XXXX : Yes. 

XXXX : Your fourth payment is going to be on the XXXX of XXXX. After that your payments going to be, that is what your payment is going to be per month instead of paying so that is what your payment is going to be after the first 5 months. So you dont pay that payment now because if you were to pay that payment now to XXXX it is going to be, going to be pretty much useless. So its going to transfer over from XXXX probably over to XXXX and that is where your XXXX payment is set at right now if you were to start paying XXXX right now. But the case is it is going to be transferred over to XXXX after your 5 months payment. And the {$71.00} is what you are going to be paying back with, with XXXX  per month and thats going to be you know, thats the maximum, thats, thats not going to be exact, thats going to be maximum the high end. 

XXXX : Cuz I thought, I thought we originally talked about you know {$120.00} for 20 years. 

XXXX : Correct. So what happened is, you got it lowered with you got it lowered with XXXX so it got lowered, um, due to the consolidation process and then right now it is set at $ XXXX {$71.00} a month. So you are actually going to be paying, depending on, lets see hereit is probably, probably a graduated program so it will probably go up to {$120.00} XXXX : Okay XXXX : Lets see, yeah thats what it is, it is going to go up to, your last payments are going to be around that amount. So the graduated it going to go up every couple of years but it is going to be you know, the balance is never going to go up the payments are going to go up to fill that balance. 

XXXX : Okay. 

XXXX : Does that make sense? 

XXXX : Yeah. Can I pay them {$120.00} per month? 

XXXX : Um, I ugh, not in the program you are enrolled in right now you dont want to be making payments over the minimum or over what you are qualified for because then if the Department of Education sees that you are paying more money upfront then they are going to ask why you got qualified for such a low amount, they are going to say well if she can afford to make this many, ugh payments this large why didnt we have her making these payments in the first place she should have been making higher monthly payments the entire time. And so it is kinda that type of program where there is no interest accumulating so you are not saving any money by paying it off sooner or paying more. 

XXXX : Okay, perfect. 

XXXX : Okay. Does that make sense? I know its, its a lot of information, it is a lot, its very confusing, not confusing process, its just a lot. A lot of different sources. There is me handling your loans, then you have XXXX doing the consolidation and submitting your new repayment plan. And then after that, it is basically it is all reliant on your payments being made toward your new program which you have been doing very successfully obviously and I appreciate it. But, um, whats going to happen is, you know, your income hasnt changed at all either, correct? 

XXXX : No. 


XXXX : Okay, then youre not, then everything is exactly how it is supposed to be. Im just going to review one last note from, from XXXX really quick. Just to make sure. Okay yeah, just want to make sure, yeah so that payment is going to come after, after your last payment to, to us which is going to be on the, believe, lets see here, the XXXX of XXXX. So starting on XX/XX/XXXX, um or if you need to change that date at that time that is when your {$71.00} payment is going to start being made. 

XXXX : Okay. 

XXXX : Does that make sense? 

XXXX : Yes. 

XXXX : Okay, and then um, basically, you know, like, like we talked about before, is you know, if your income goes up your cuz when we recertify you every year which we do recertify you every year thats obviously part of the services then you will just be showing proof of income once a year. So if your income goes up your monthly payment, you know, is going to go up a bit. 

XXXX : Right. 

XXXX : Ugh, I dont mean, you know, if your income goes up {$5000.00} your payment not going to go up but if your income goes up from making $ XXXX to making $ XXXX then at that point, you know of course, it is going to go up a little bit because it is income driven. 

XXXX : Right. Okay. I understand that. 

XXXX : Okay. So, I know that it is a lot, a lot of back and forth and everything like that, and, and it is, please, please do ask any questions if you have any. I definitely dont want you to be confused or anything and it is a confusing process, so if I didnt do this for a living I would be little bit lost, well or not lost, but just a little bit, you know, questioning too. 

XXXX : Okay, so um so that I dontI need to give you my new credit card number. 

XXXX : Okay, Lets see here. And the other one we will take off file completely, correct? 

XXXX : Yeah. They issued me a new one under that number but then they, um, I guess there were some compromises so they cancelled tit all together. 

XXXX : Oh, okay. And is it a credit card or a debit card? 

XXXX : This one is a XXXX XXXX XXXX credit card. 

XXXX : And the type of card? 

XXXX : Is a VISA. 

XXXX : Okay. And the name on the card is your first and last name? 

XXXX : Ugh, XXXX, middle initial XXXX XXXX XXXX : Okay. Card number whenever you are ready. 

XXXX : Is XXXX XXXX : expiration date? 

XXXX : That is um, XXXX of XXXX. 

XXXX : The three digit CVC? 

XXXX : is XXXX. 

XXXX : Okay, and perfect. Well go ahead and update that right now well go ahead and shred the other card. And as far as, just a second here. Okay, so, perfect that is updated. Im just going to review one last thing on your account. Everything is approved. I just wanted to double check that everything is lined up before we get off the phone. 

XXXX : Okay, I appreciate it. 

XXXX : Yeah, absolutely. Yeah theres a couple services, you know, the ones we discussed, XXXX and XXXX that are a lot more of a, I wont say a hassle, just a little more tricky to work with. They just dont really correspond or, you know, participate very much. They take a long time to get things back. They take, theyre just unprofessional, very unprofessional. So, that is what loan servicers do and that is why these programs are offered essentially is because these servicers are charging astronomically payments and when you look at your estimated payback, you know, with your servicer at that point your looking, you know, it is so much interest accumulating over time that you end up paying back {$25000.00} extra dollars or more or something without even realizing it because they didnt explain that to you. So thats, thats why these programs are offered basically. But as far as your account goes, sorry I didnt mean to get off topic here, with XXXX they have your estimated payback being somewhere probably {$60000.00} or more. 

XXXX : Yes, it is very high. But when this starts in in XXXX my payback or my total balance due will be {$32000.00} something or what we discussed in the beginning? 

XXXX : Correct. Yes, ugh-huh. 

XXXX : Okay XXXX : So thats, yeah, basically, the uh, you are going to make the payments, um, you know, just as scheduled. And then as far as the billing for the term goes um as soon as you get to the end of your term any remaining balance that would have been on your XXXX account is going to be forgiven. So, any uh, you know anything that would have would have it will show you what your estimated payback is, not on your XXXX account, but it will just give you an idea of what you would have paid back so that when you get to the end it will say Congratulations this is your discharge, your actually discharge amount because this is what you would have paid back essentially. Does this make sense? 

XXXX : Um, but I wont have a XXXX account right? 

XXXX : No, no, you will not. But it will let you know thats what you are saving basically over time. It will let you know at the end of your term whenever you pay your final payment itll show, not on your XXXX account, on the Department of Education, it will show Congratulations, you know, your student loan debt is 100 % paid off due to your successful payments of this amount for this amount of time this is the estimated amount you, that you, saved by enrolling in the program. 

XXXX : um XXXX. 

XXXX : Because over the years the interest, you know, would accrue and go up to a certain amount so they give you an estimate just like you would get an estimated payback. 

XXXX : Okay. 

XXXX : XXXX, does that make sense? Did I answer your question? 

XXXX : Yeah. Im still confused but I guess Ill see what happens when, after XXXX : What? What? I definitely dont want you to be confused. What else? Whats confusing or what are we not understanding? 

XXXX : I just want to make clear that we agreed on a {$32000.00} something payback for 20 years. 

XXXX : Correct. 
XXXX : At no interest. 

XXXX : Correct. 

XXXX : And thats what the program will kick in on XX/XX/XXXX? 

XXXX : On, I believe so, let me check, your last payment is going to be on XX/XX/XXXX. Correct, yup. So starting on XX/XX/XXXX, or if you need to change that date you can. 

XXXX : Okay. 

XXXX : But starting on your first payment in XXXX thats whenever that will happen. Yes. It will be finalized on XX/XX/XXXX but your next payment wont be due for another month obviously. 

XXXX : Okay XXXX : Does that make sense? 

XXXX : XXXX. 

XXXX : Okay, Definitely, definitely give me a call if you have other questions or you think of anything. I dont, I know this is a long process and it takes a long time for it to happen. Uh, its basically just, uh, realistically it is the Department of Education just wanting to see that you are making an honest attempt to pay back on your loans. And obviously you are so youve done everything on your end 100 % to correspond so as soon as they see that, thats uh, you know, thats why, you know it is such a process, cuz, there are people who just pay like one or two payments then they just stop paying and they are wondering why their loans arent being forgiven. Its a, definitely a process. And if they are going to pay off such a sufficient amount then they have to see the correspondence, which youve been very good about so far and as well as the communication too. 

XXXX : Okay. Um, I guess my other question I think, I kinda wonders, um, you guys havent sent any mail correspondence. So XXXX : Everything, everything is going to be done, um, you know, over email or through, you know, digitally, because of the fact, that people, one of the biggest issues with student loan debt right now is default, especially people who are in default is getting mail sent to their old address and then having no idea, people call in all the time and they have no idea where their loans are at or they think that their loans are like {$11000.00} and then you pull up their loan details from the FSA and they have {$35000.00} in loan debt because all the mail has been sent to their old address. 

XXXX : Oh. 

XXXX : So everything that can be printed is online because you can go directly to the source. Im not saying you wouldnt update your address, its just standard protocol. 

XXXX : Okay, that makes sense. 

XXXX : And, its just the digital, digital era. Everything is online now, you know, it is not like direct deposit, nobody really gets paycheck stubs any more. 

XXXX : Right. Right. Im still old school but XXXX : Yeah, yeah, I understand, no big deal. Yeah, definitely give me a call if you have any questions? And uh, is this the best number to reach you at for future reference? 

XXXX : Um, no the XXXX is my cell phone number. This is my work number so you can call this number and leave a message at any time. But my personal cell phone is XXXX. 

XXXX : Perfect that works. 

XXXX : Okay. 

XXXX : Alright, I will talk to you soon and, uh yeah, let me know if you have any further questions. Okay? 

XXXX : Thank you so much. 

XXXX : Absolutely. Good bye.