Consumer complaint received 2019-11-23
Company: AES/PHEAA
State: NC
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Need information about your loan balance or loan terms

Complaint:
I recently consolidated delinquent loans while finishing graduate school and attempt to get things back in order upon graduation. On XXXX my application process begins for consolidation with Fed Loan Servicing in the amount of {$27000.00} to which on XXXX, a payment is made to the US. Dept. of Education. During this time, Fed Loan Serving requests the amount due on the loans I submitted for consolidation and makes a payment electronically to the US. Dept. of Education. At this time, I receive a notice for the successful  consolidation. Also, my loans are in deferment while I finish school in XXXX. Fast forward to XXXX, for which I receive a letter from the US. Department of Education informing me that an underpayment had occurred in the consolidation payoff ( approx 6 months after the fact ) in the total amount of {$2100.00} across 3 loans. When I call about these loans, I am told that they are being serviced by Fed Loan but what I can't get a straight answer on between the Dept of Education and Fed Loan is who exactly has the account. 

A few days later, on XXXX there is a delinquent account reported on my credit report as a charge off in the amount of {$710.00} that causes my credit score to drop. In addition, on the report it says the account was closed on XXXX. Next, on XXXX Fed Loan Servicing makes an additional payment to cover the underpayment. The peculiar thing about this is that I call both agencies on XXXX to figure out how this amount was reported on my credit without knowledge of the a balance being due prior to a week before. I call the US Dept. of Education to dispute the delinquent account reported on my credit for which they can not tell me where the obscure amount of {$710.00} is from or which loan it is. I am informed by a representative there that they received the payment in XXXX and then sent a notice of underpayment to Fed Loan Servicing on XXXX. At this point, I can not wrap my head around it taking over 5 months for this discrepancy to be resolved. I asked why I was not informed of the underpayment and was told that this was handled between the agencies through the " Back Office ''. So I request the documentation of the letter or form so that I can call Fed Loan and dispute the timeliness of the underpayment request, but I am told that they are not able to provide the documentation to me regarding MY ACCOUNT and that I would have to write a letter requesting the information. Oh and I had to speak with two representatives, both of which I was disconnected in the middle of disputing this information request. 

Next I call Fed Loan Servicing right after that ( still on XXXX ) trying to get to the bottom of this and figure out how this account was reported to the credit bureau and where it came from. So I explain the situation to the representative and I get a similar feeling as the representative just keeps saying that he can't find anything noted on the account. I get transferred to a " supervisor '' and plead my case in trying to figure this out. She tells me a similar response as the representative at the Dept. of Education, in that the information regarding the transactions between Fed Loan Servicing and the Dept. of Education are done " behind the scenes '' and the information is "  confidential '' and I am unable to see it. I have read my borrower 's rights and I can not find a single instance or phrasing with the ability to deny me information regarding my accounts. Furthermore, on each website for my accounts at the US. Dept. of Education ( myeddebt.ed.gov ) or for Fed Loan Servicing ( https : //myfedloan.org/ ) I can not obtain any documentation for any such notices regarding the balances for either of these transactions that have occurred. I am very frustrated and I want answers. I feel that I am being given the run around in hopes that I will stop pursuing the documentation I am requesting to prove my case. The fact that I was told that the same " Back Channel '' deals were done by both agencies that refuse to give me the information I requested regarding my account is highly suspicious.

Company response to consumer: Closed with explanation