Consumer complaint received 2022-03-18
Company: AES/PHEAA
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
FedLoan misinformed me of my requirements and responsibilities, stating that I was required to recertify my income for my IDR plan when I was not required to do so. As a result, my repayment plan was changed from IBR to REPAYE and more than doubled my previous monthly payment. More than {$20000.00} in interest capitalization was added to my principal balance. The customer service representatives repeatedly misled or did not respond to my requests to resolve this issue. 

- XX/XX/XXXX - Monthly payment is XXXX total loan balance is XXXX XXXX  XX/XX/XXXX : Received notice that I was required to recertify my IDR plan to remain in PSLF - XXXXXX/XX/XXXX : Submitted IDR request on XX/XX/XXXX - XX/XX/XXXX - Received confirmation of receipt from FedLoan on XX/XX/XXXX - XXXX - IDR request was denied on because I no longer had a partial financial hardship ( another letter confirming this was received on XX/XX/XXXX ). My new payment was quoted at {XXXX more than doubling my monthly payment and adding an additional XXXX per month from my previous payment plan. Staying on IBR meant my payment would exceed the 10-year standard repayment plan amounts. 

- XX/XX/XXXX - Contacted FedLoan via phone, and a customer service rep informed me that I had to switch my IDR plan to REPAYE in order to lower my monthly payment and remain eligible for for the PSLF program. Despite asking multiple times, the customer service rep repeatedly told me that switching to REPAYE was my only option. At no point did he mention that I was not required to recertify my income driven repayment plan at all. 

- XX/XX/XXXX - Submitted a new IDR plan application to lower my monthly payment and change IDR plan to REPAYE, believing it was my only option. 

- XX/XX/XXXX - Received the following letter from FedLoan : As part of the Income-Based Repayment ( IBR ) plan, you are required to recertify annually, even if your income or family size has not changed. We needed this updated information to recalculate your monthly payment based on your income and family size. 

We received your documentation for your annual recertification but determined that you do not have a partial financial hardship ; therefore, your new payment amount is not based on your income and family size. Your loans will remain on the Income-Based Repayment ( IBR ) plan but your payment amount changed to {$1100.00}.

If you still want your payment amount based on your income and family size, you may have options. Income-Contingent Repayment ( ICR ) and Revised Pay As You Earn ( REPAYE ) do not require that you have a partial financial hardship. To apply for one of these plans, visit StudentLoans.gov. 

- XX/XX/XXXX - FedLoan approves my IDR request, my new monthly payment is {$890.00}, an increase of {XXXX  per month. 

- XX/XX/XXXX - Interest capitalizes from my IBR plan, adding XXXX} to my principal balance. My new balance is now {XXXX 

- XX/XX/XXXX - I learn that I never had to recertify my IDR plan in the first place, and I e-mail FedLoan saying that I want to be returned to my previous IBR plan and have the interest capitalization removed from my account. I never receive a response. 

- XX/XX/XXXX - I contact customer service ( XXXX # XXXX ) requesting to return to previous IDR payment plan and payment amount, with interest capitalization removed from my account. Im transferred to a different department. After 45 minutes on hold, I reach someone ( XXXX # XXXX ) and am immediately transferred again. After nearly 2 hours on hold, I still do not reach a customer service rep.

I send the following e-mail to FedLoan : " I am requesting FedLoan return me to the income-based repayment plan I was enrolled in as of XX/XX/XXXX, and refund all interest capitalization that occurred as a result of changing my IDR plan from IBR to REPAYE. I would like REPAYE and all repayment plan changes removed from my account history entirely, so my loan repayment plan history states that my loans remained on the IBR plan from XX/XX/XXXX to present. '' XX/XX/XXXX - Submitted complaint to consumerfinance.gov

Company response to consumer: Closed with explanation