Consumer complaint received 2019-01-09
Company: AES/PHEAA
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Problem with customer service

Complaint:
Please refer to my prior complaint : XXXX ( submitted XX/XX/XXXX, closed XX/XX/XXXX ). Below in quotations is the response from XXXX XXXX.

" The Office of Consumer Advocacy ( OCA ) at Pennsylvania Higher Education Assistance Agency ( PHEAA ) received your correspondence through the Consumer Financial Protection Bureau ( CFPB ) portal regarding your student loan account administered by XXXX XXXX on behalf of the United States Department of Education ( Department ). You have a loan disbursed under the XXXX XXXX XXXX Federal Direct ( Direct ) Consolidation program. The OCA performed a thorough review of your student loan account. Specifically, we reviewed the loan details, the communication history, the repayment schedules, the financial transactions, and the Income-Driven Repayment ( IDR ) recertification application. In your inquiry, you described the difficulties that you experienced when attempting to recertify for the Revised Pay As You Earn ( REPAYE ) plan. In addition, you indicated that the XX/XX/XXXX interest capitalization reversal had not been completed on the loan. You requested for the capitalized interest and any additional interest charges to be reversed. Based upon our review, you were sent an IDR recertification notice on XX/XX/XXXX, which listed a due date of XX/XX/XXXX. As indicated in your CFPB inquiry, you submitted the recertification application ahead of the deadline on XX/XX/XXXX. However, the recertification application was inadvertently not approved at that time due to a processing error on XXXX XXXX end. As a result, the account was updated to reflect the IDR-Alternative repayment schedule on XX/XX/XXXX. The new, uncertified installment amount exceeded {$4000.00} for XX/XX/XXXX. In addition, the outstanding accrued interest was capitalized ( added to the principal balance ). Eventually, the REPAYE plan was approved, and it requires 12 monthly installments of {$430.00}, effective XX/XX/XXXX. To ensure that you were not responsible for paying the large bill due on XX/XX/XXXX, XXXX XXXX applied a period of forbearance to the loan from XX/XX/XXXX through XX/XX/XXXX. In addition, XXXX XXXX agreed to reverse the interest capitalization even that occurred on XX/XX/XXXX. However, XXXX XXXX experienced some difficulties with the adjustment initially, which caused a delay in the completion of the process. After receiving your CFPB inquiry, we contacted XXXX XXXX on your behalf to request for the interest capitalization reversal adjustment to be expedited. You may be assured that XXXX XXXX reversed the interest capitalization on XX/XX/XXXX. A summary of financial activity has been sent to you under separate cover to confirm the XX/XX/XXXX interest capitalization reversal and resulting payment reapplications for the Direct Consolidation Loan. On behalf of our agency, we sincerely apologize for any confusion or inconvenience that you may have experienced with the processing of the recertification application and with the interest capitalization reversal. No additional action is planned by the Office of Consumer Advocacy at this time. For questions regarding your account, please feel free to contact XXXX XXXX directly at XXXX. Loan counselors are available Monday through Friday from XXXX XXXX to XXXX XXXX, ET. 
DESCRIPTION OF NON-MONETARY RELIEF The interest capitalization effective XX/XX/XXXX was reversed on the Direct Consolidation Loan. '' HOWEVER, THE INTEREST CAPITALIZATION WAS NOT REVERSED. I WAS SENT A STATEMENT WITH THE SAME INCORRECT AMOUNT SHOWN : {$340000.00} PRINCIPAL WITH {$21000.00} IN OUTSTANDING INTEREST FOR A TOTAL BALANCE OF {$360000.00}. THIS IS INCORRECT STILL. {$1100.00} OF CAPITALIZED INTEREST WAS ADDED TO MY ACCOUNT IN XX/XX/XXXX, AND {$1800.00} OF CAPITALIZED INTEREST WAS ADDED TO MY ACCOUNT ON XX/XX/XXXX, FOR A TOTAL OF {$12000.00} OF CAPITALIZED INTEREST ADDED TO MY ACCOUNT. TODAY XX/XX/XXXX I WAS SENT AN ACCOUNT SUMMARY WITH AGAIN THE WRONG TOTAL ON IT. THE BALANCE ON MY ACCOUNT REMAINS EXACTLY THE SAME- HOW THEN COULD THE INTEREST HAVE BEEN REMOVED? Am I missing something? 

So basically, this request was closed when XXXX XXXX said my interest was reversed, but YET AGAIN THEY ACTUALLY NEVER DID AND NEVER FOLLOWED THROUGH. This is now beyond fradulent, and I do not understand how this can be allowed by a government agency that is supposed to be protecting the consumer. I, the consumer, am continuously lied to, so I am submitting yet another complaint. Please contact me as soon as possible. Thank you.

Company response to consumer: Closed with explanation