Consumer complaint received 2018-10-23
Company: AES/PHEAA
State: MD
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I am writing after months of phone calls to XXXX and XXXX  XXXX XXXX that have gone nowhere and have not resolved what should require a simple fix. 

From XX/XX/XXXX-XX/XX/XXXX, I was a XXXX  for XXXX XXXX Member and earned an XXXX XXXX   Award. In XX/XX/XXXX, I submitted a payment request from XXXX  to XXXX in the amount of {$5300.00}. In the payment information submitted to XXXX, I specifically indicated that " Payment to be applied to Group C loans ONLY which are Direct Unsubsidized Loans from XXXX University. '' Please See Attachment, Page 1. The original loan amount for the Group C loan was {$5400.00} and so the payment of {$5300.00} would have nearly paid off the loan ( of course leaving aside the accrued interest ). XXXX received the payment but misapplied it. Instead of applying the payment to the indicated Group C loan, they applied the payment across all of my loans, essentially making no dent in any of them. 

I saw the error in early XX/XX/XXXX and immediately called XXXX. I spoke with a representative who indicated that she could see the error on their part in misapplying the payment and indicated that she would submit the request to have my payment reapplied. A few weeks later, my loans were transferred to XXXX XXXX XXXX so that I could participate in Public Service Loan Forgiveness.  At that time, I saw that the payment had still not been reapplied. I called XXXX again. This time, they told me, that although they had misapplied my payment and had notation of that in their system that there was nothing they could do. They indicated that it would be a simple fix and that I should contact XXXX XXXX XXXX and explain the situation to them. That has of course proven not to be the case. I have called XXXX numerous times with no resolution. The closest I have come was a conversation in XXXX with a XXXX agent named XXXX who indicated that she was submitting a request to Financial Management for the payment to be reapplied -- months later that has not happened. 

I have called XXXX numerous times and each time I am told that although they see the error on their part that there is nothing they can do. When I call XXXX, I am told that although they are the ones managing hundreds of thousands of dollars of my loans that they are in no position to do anything. I imagine that transferring large loans would sometimes require some adjusting, or correcting but XXXX is refusing to be at all responsive. 

Lastly, I just want to provide a bit of background on why this matters. I don't mean to be difficult but simply can not afford a mistake like the one XXXX made. I am a public interest lawyer, currently interviewing for positions. My dream job will likely pay {$45000.00} and I have over {$100000.00} in student loans. Fortunately, my law school will pay for the loans I incurred while a law student. I am however responsible for paying my XXXX loans. That is why I needed and requested my payment be applied specifically to my Group C, XXXX loan.

Company response to consumer: Closed with non-monetary relief