Consumer complaint received 2019-04-03
Company: AES/PHEAA
State: TX
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
In XXXX of 2019, American Education Services increased my monthly payment to {$240.00}. Due to having to purchase a vehicle, increase in my auto and renter 's insurance, increase in my rent due to releasing, and other student loans, I am unable to afford the monthly payment. All I want is for AES to lower my payment to something I can afford so, they can stop reporting my account as past due on my credit. This negative credit reporting This feels like a system designed to ensure that people are never able to pay off the loan. I feel at this point, my only recourses are to report AES to financial bureaus ( so other people can be fully informed when deciding whether to financial their student loans through XXXX XXXX ) and consider taking legal action. Legal action may be necessary to let the courts decide is AES is engaging predatory lending practices, much like XXXX XXXX and XXXX. I contacted AES a few times in XXXX of 2019, and again today ( XX/XX/2019 ) about my loan. When I initially fell behind on my payment in XXXX of 2019, I called AES to ask for help in lowering my payment, the agent informed me that she was going to submit the request for a lower payment. However, she failed to tell me that I need to pay the {$240.00} payment BEFORE she would process my request. I tried to inquire about the terms but, she rushed me off the phone. When I logged onto my AES account a week or so later, it showed the same payment for {$240.00} plus a late fee. I called in to inquire and was told that they my request to have my payments lowered was not processed because I did not make the {$240.00} payment. This does not seems logically, the whole point of me calling in to request a lower payment is because I could not afford the the {$240.00} payment. I was also assessed {$10.00} late fee due to the {$240.00} ( which I could afford and did not pay based on the agent telling me she was requesting a lower payment ) was past due. I asked to have the late fee reversed due to the incorrect information but, received a letter denying my request due to payment being past due. Everytime I call AES, I am told completely different information by the agents, at some point I was told that the agents who initially answer don't work for XXXX XXXX and are unable to see all of the payment options. Also, when I log onto AES, it asked me to call in if I am unable to afford the monthly payments. Clearly, this is misleading because when I call in I am often told there are no options. On XX/XX/2019, at XXXX XXXX, I initially spoke with an agent who refused to read the notes on my account, provided me with a " 5 plan '' option that would have me paying 120 months of payments that would mostly be paying only the interest of the loan ( which is about {$3.00} per day ). That agent put me on hold in the middle of me talking. I hung up and called back and reached a XXXX ( ID XXXX ) and was told that I did not qualify for the 5 option. XXXX transferred me to XXXX ( ID XXXX ) who supposedly works for XXXX. She send me an application for loan modification which is 1 time only option. She said XXXX only mails the applications, which take approximately 7 - 10 business days to receive, then you fax the form back and it takes them approximately 7 - 10 business days to process. I questioned the process by explaining that puts me further behind and then allows XXXX/AES to negatively report to my credit. Then, I saw the application in my AES paperless inbox, I completed the form on XX/XX/2019 and was denied on XX/XX/2019. XXXX XXXX   explanation for denial was " You did not meet your Lender 's criteria to be eligible for this schedule at the time of the request. '' The letter prompts me to call AES if I have inquiries. I called today, XX/XX/2019 and was informed that XXXX has the final say and there are no options. Now, I am over {$500.00} past due on my loan, over 42 days past due, XXXX is refusing to lower my payments, and they are going to continue to negatively report to my credit, which puts me further into the hole and prevents me from qualifying for refinancing from another provider. I could understand if I was refusing to make payments, but all I want is an affordable payment. I don't want a temporary solution, I want a permanent solution. I am trying to make payments in good faith. Also, this feels like punishment for pursuing a higher education and a system designed to ensure people remain in debt.

Company response to consumer: Closed with explanation