Consumer complaint received 2020-03-11
Company: COAST PROFESSIONAL INC
State: NC
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 regarding the handling of my student loans with the Department of Education of XXXX. Currently the bulk of my student loans are with XXXX  and I am very happy with how they handle my loans. I qualify for the Income Debt Repayment plan, and have had no issues with XXXX receiving my IDR application as well as proof of income. It is easy and reasonable to manage my account with them and supply them with necessary documentation. 
Last year, and this year, I qualify for a monthly payment of {$0.00} until XX/XX/XXXX, with about {$2700.00} loan forgiveness. 
Dealing with the the Department of Education has been a nightmare from the beginning I. I have tried many attempts to work with them, and found it extremely difficult. I have tried to apply to their financial aid program but found their application to be excessive and not something I was able to obtain all the information, some of it personal and irrelevent. The application asked for a years worth of bank statements, copy of all bills, etc. I submitted what I could including a copy of my tax return. 
They had a monthly payment amount that I could not afford. Therefore the loans went into default. Once in default and working with a contracted third party company, I submitted to them on XX/XX/XXXX as requested a wet signature on the schedule C of my XXXX taxes, as well as a complete copy of my XXXX taxes. I have a copy of those emails. I explained that I could not afford the payment amount the dept of education had set for me. So they set my payments at {$5.00} a month. I paid those payments automatically deducted from my bank account since XXXX of XXXX. I do not know why they did not receive a copy of the IBR plan that was submitted. My loans with XXXX have been in good standing at a {$0.00} amount due per month during this time. I have received mail each month from Coast Professionals, a notice stating {$5.00} would be deducted from my bank account. I had no communication whatsoever, that the signed Schedule C on my 1040 return, was not good enough, and what they wanted was a 1040 ES with an estimated earnings with a wet signature as well as a signature on a Rehabilitation program letter.I received a call about a week ago requesting this documents in which I accomodated. I did not receive any communication that they would be taking my Income Tax Return of {$4000.00} and applying it to my loan. There was no warning that this was going to happen,. Ive done everything they have asked me to do. I have made automatic on time payment for a year. I have provided all the paperwork. I can. Submitting my full tax return and applying for an IDR plan should be enough to keep them from being able to find loopholes and ways to steal peoples tax return. I am a single mother, my income is below the poverty level. This puts my family in a crisis. Last year I made less money because I have been ill and waiting for XXXX. Ive had to postpone XXXX because I could not afford my insurance premium. This has always been an issues with the department of education and I find their practices and handling of peoples student loan files to be unethical, and cruel to people of low income, XXXX or otherwise disfranchised. I am demanding that my tax return be returned in full, without hassle. I really should not be in default, if the application had been reasonably accessible and accepted then I would of qualified for payments appropriate to my income. I should not be in default with an IBR plan on file stating that my payments are XXXX. It is unethical to take a tax return when someone is making payments each month, in the amount that was request. I am asking that my tax return, be returned to me. I have met the qualification of the default program, therefor I should be released. I would like to consolidate my loans so that XXXX can be the only managing company in charge of my loans.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation