Consumer complaint received 2020-01-31
Company: EQUIFAX, INC.
State: CO
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
From XX/XX/XXXX- XX/XX/XXXX, I attended XXXX XXXX University in XXXX, Iowa in which XX/XX/XXXX, I received my XXXX XXXX XXXX degree. 

During this period of time, I applied for two Federal Loans ; a Stafford subsidized loan and a Stafford unsubsidized loan. I received both loan awards at the highest amount possible and throughout the duration of my education, received disbursements per semester, to cover the costs of receiving my education. 

As a result of extreme financial hardships, I was unable to continue making payments on my Federal loan after XX/XX/XXXX in which the loans went into a default status. As of XX/XX/XXXX, my total " owed '' is {$56000.00} in which a significant amount is in " collection fees '' that have been added on top of the actual loan debt. 

The loans were " contracted '' to a third-party collector that has verified the following : The Federal Department of Education still " owns '' my loans. This department has assessed and added to my student debt, " collection fees '' in the amount of {$8500.00}. They also state that the Department of Education continues to assess, daily, interest on not the two loans but the individual loan disbursements in which there are approximately twenty ( 20 ). The amount of interest added to my overall actual loan debt has been {$6000.00}. 

Prior to the loan being contracted with a third-party collector, the loan amount due was under {$29000.00} ; an amount that for me now would still be challenging to pay but not impossible. However, with the addition of the " collection fees '' and interest, it is an impossible amount to repay. 

In XX/XX/XXXX, my federal tax return owed to me for approximately {$1500.00} was recovered by the Department of Education in a " tax offset '' however, they collector could not verify with me where the actual tax recovery/payment went whether it went to the principal loan amount, interest, or the collection fee. I was told " it is likely that payments received would be put to a combination of the three total charges now being assessed to me however again, they could not verify how the Department of Education was allocation my payments. 

I requested further conversation with the collector to negotiate removal of the fees ; specifically the collection fee. They said they were not allowed to enter into any negotiations for the total payments. 

I've attempted to contact the Department of Education Federal Loan servicing division however, as the loan/s are with a " collector '' they refuse to talk to me. So, there is no way to get direct information about how payments are being reallocated to my loan balance and the collector also can not speak on behalf of the Department of Education. 

This year, in XX/XX/XXXX, my XX/XX/XXXX Federal tax filing will have close to {$9000.00} in losses from a business I started in XX/XX/XXXX that continues not to make a profit. As a consumer, I need direct proof and clarification from the lender, in this case, the Federal Department of Education 's Direct Loan division, exactly how my payments are being allocated. I also need a way to speak with them directly to be able to discuss negotiation of the removal of superficial fees which would make it possible for me to repay my Federal debt. 

Without any way to do what I am requesting, it will not be possible to repay my debt and as a consumer, I believe my rights have been violated. 

Further, the " collector '' and/or the Federal Department of Education had reported my delinquint loan amount as 47 ( forty seven ) individual loans that were in " collections '' to the credit reporting bureaus sinking my credit score to under 490. 

I have been directly and deliberately economically harmed by the actions of the Department of the Education 's policies toward collecting on past due student loans. 

I am requesting your agency intervene and investigate if you have the jurisdiction to do so.

Company response to consumer: Closed with explanation