Consumer complaint received 2018-08-01
Company: GREAT LAKES
State: PA
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:
To whom it make concern, In XX/XX/XXXX I started my graduate student loans with FAFSA, then after graduation in XX/XX/XXXX, I received an email from Great Lakes informing me that they are the going to manage my loans and the first payment going to be on XX/XX/XXXX At that time I applied to repayment driven by income, and since then I was sending the required documents to Great leaks every year to decide my ability to repay the loan. According to my income and family size, my monthly due payment was {$0.00} till the beginning of XX/XX/XXXX At the beginning of XX/XX/XXXX Great lakes reviewed my renewal application with my supported documents, and decided to make my monthly payment {$23.00} I agreed and started paying this amount on time.

In XX/XX/XXXX, I received a phone call from Great Lakes, the associate said, you parent student loan will do in XX/XX/XXXX and the due payment is {$100.00} ( I had a parent student loan for my son who was studying at XXXX XXXX, but he stopped and didnt complete his studying ).

I explained to the customer service representative that I can not handle these two monthly payment, how am I going to pay this {$100.00} and Great Lakes just reviewed my income in the last two months and acknowledge that my ability according to my income and family size is {$23.00}, it is mean I have to pay ( {$23.00} + {$100.00} = {$120.00} ) this is too much for me! I want to pay and I dont want to default with my payments, but this is above my capacity.

She suggested to consolidate all the loans, and if I will do that, the total payment ( For my loan and the parent student loan ) going to be approximately {$70.00}, and this will decrease the payment significantly from {$120.00} to about {$70.00} The representative instructed me to log on online and proceed with a consolidation application. I told her to give me some time, and let me talk to my son and I will make a decision.

In May I contacted the Great Lakes and asked them about the consolidation which been recommended by Great Lake associate and the associate who talked to me over the phone agreed to the consolidation and how this can decrease/reduce my total payment to about {$70.00}, she added, keep in mind that you still need to pay the coming due payment {$100.00} in XX/XX/XXXX and XX/XX/XXXX, then after completing the process of consolidation, the total payment for ( your loan and parents student loan ) to about {$70.00} ( This is going to be the best repayment plan ) I called Great Lakes another time in XX/XX/XXXX, to ask about some details and started the consolidation process. I applied for consolidation and in my application I chose to start the consolidation process in XX/XX/XXXX ( It was optional to choose the time to start the process ) In XX/XX/XXXX surprisingly I received emails from Great Lakes informing me that they approved my application for the consolidation, while I requested and instructed in my application to start in XX/XX/XXXX, but I considered its done and at the end it is going to be good for me as the total payment going to be around {$70.00} Unexpectedly, on XX/XX/XXXX I received an email from Great Lakes informing me that the due paying going to be on XX/XX/XXXX and the amount is {$320.00} I called Great lakes, explained all the details above, and told them that I did the consolidation according to the associate suggestion, and the entire goal was to reduce the payment from {$120.00} to {$70.00} The associate didnt help me to resolve the issue, she transferred me to a supervisor, and the supervisor informed me that she needs to hear the phone calls and then get back to me, it took a week till she called me back and said, I am not sure, I listened to the recorded phone calls but the voice is not clear and a little cut out especially when the conversation between you and the associate was about the {$70.00}, yes she recommended the consolidation but she just estimated the payment around {$70.00} I told her when someone estimating {$70.00} it may be {$60.00} or {$80.00} but not {$320.00} she suggested to me and I did the consolidation as a result for her advice. She said ; I cant help you with that, I will talk to my manager, and he will contacted you in 24 to 48 hours I told her yes, I want to escalate complain to a manager.

I left her 6 voicemails asking her to call me back, and informing her that her manager didnt call me back.

After a week of calling and leaving voicemail, I got a call from a manager who was not calling to listen to the situation, but to affirm that Great Lake will not be doing anything and will not be reversing the loan. I asked why didnt an underwriter see that my payments are going from {$120.00} to {$320.00} would be ok. And that no one checked my Debit to Income ratio to realize that I can not afford that payment. The manager didnt comment on that statement and kept saying that the company wont change anything, and he stated that this plan will take 20 % of my income.

I told him you are setting me to default, because two months ago, Great Lakes evaluated my ability and decided {$23.00} is my maximum, how do you approved me for a consolidation put me on {$320.00} as a monthly payment, how did you do the calculations, which equation you used to put me on this plan!

( I understood from the conversation, that he is the loan officer/underwriter who did the process ) All his concern was that the representative didnt suggest to me the consolidation, or after lot of back and forth he said yes she did recommended a consolidation but not this type, another type.

He told me that I can forbearance for 12 months, but there will be {$16.00} interest every day Here I am requesting a help to solve my issue with Great Lakes, as no way will I be able to make a payment that large. Please understand my situation. Im unable to make that payment nor am I able to afford a missed payment on my Credit history.

I had my loans for graduate program, as I did my XXXX   XXXX in XXXX, and I completed the program with XXXX  XXXX out 4 and will not do this mistake, unless the two representative confirmed to me that this is the best solution and will help me reduce my monthly payment.

My request is to put me where I can pay my student loan and the parent student loan according to my income just like what I had before, something around {$25.00} for my loans and {$25.00} for parent student loan, in the same time I want to file a maximum complain about that manager who insist to defend himself and his team even when he knew that his team advised me for this plan and he completed the process with 100 % know I am not going to be able paying this amount, and with all my requests and explanations, he insisted to keep me on this plan.

Great Lakes ID : XXXX XXXX/XXXX Loan Account with U.S. DEPARTMENT OF EDUCATION ( XXXX ) XXXX Loan Account with U.S. DEPARTMENT OF EDUCATION ( XXXX ) XXXX/XXXX Loan Account with U.S. DEPARTMENT OF EDUCATION ( XXXX ) Sincerely, XXXX XXXX Cell # XXXX XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation