Consumer complaint received 2020-10-27
Company: WELLS FARGO & COMPANY
State: MI
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't temporarily delay making payments

Complaint:
On XXXX XX/XX/XXXX I received a response from Wells Fargo regarding my payment terms for a private student loan. It took my university thru mid XX/XX/XXXX to ascertain whether I was eligible for a forbearance per my MPN and loan disclosure documentation. I was denied on the basis that the maximum forbearance time had been used under my MPN. Wells Fargo has responded making a distinction between an in-school forbearance and payment deferment. It is true that there is a maximum deferment time per the terms outlined in my MPN. However, any forbearance that I have requested beyond that was not disclosed to me as a modification of the original loan terms in agreement with the loan originator, which is NOT Wells Fargo. 

In their XXXX XXXX response Wells Fargo claims that my loans entered into a " payment deferment '' and lists several dates during which the payment was deferred. However, no such term " payment deferment '' exists as a status per my MPN, nor has any representative referred to such a type when requesting a forbearance of any kind. in fact, the MPN outlines the common set of terms with which the loan was originated with -- this term is not listed. Each representative I've requested a forbearance with specifically stated that the reason for the forbearance was because I was " in-school. '' At no time did any representative make me aware of a " payment deferment, '' that was anything outside the terms specified in my MPN of an in-school forbearance with an extension of forbearance time because I am completing advanced degrees. Furthermore, when requesting an " in-school deferment, " each representative corrected me referring to an " in-school forbearance. '' Wells Fargo is therefore making a distinction between what was applied under the conditions of my MPN, and an arbitrary category Wells Fargo refers to only in the attached letter as a " payment deferment. '' In my last phone conversation with a Wells Fargo representative I was informed that I had other kinds of forbearance options to include relief during the current pandemic, and an option for a forbearance if I was participating in an internship. Wells Fargo failed to notify me of any forbearance available to me for internships. This is an issue because I was an intern at a XXXX XXXX during the summers of the XXXX and XXXX. It is the internship corresponding to the same program that I mentioned in the history section below. Thus, any forbearance time granted to me should be extended out and offset by the periods for which I was an intern. Furthermore, since payments could be deferred for reasons of an internship, and negative payment history should be removed and prevented from reporting for the duration of which I should have had the internship forbearance. 

As my payments began in XXXX of XXXX, WF is reporting adverse credit information to compel me, a student of non-traditional age, with a documented learning XXXX, from a minority background, to obtain employment during a pandemic so that they can offset the YoY Q3 interest income losses of XXXX percent. By forcing students into repayment during a pandemic they are attempting to hedge their losses due in the low-interest rate environment. Those of us who may be struggling are viewed as a number in their actuarial computations rather than as individuals. 

Wells Fargo makes no effort to acknowledge the difficulties that individuals from underrepresented backgrounds may face nor acknowledge the difficulties students with learning XXXX may face. What they care about is squeezing individuals for money, withholding forbearance information, and creating new terms to obfuscate their dubious practices. 

Documentation of my internships is attached. 

HISTORY : On XXXX XXXX I received a letter from Wells Fargo regarding a private student loan forbearance request. The letter was dated XXXX XX/XX/XXXX. The letter stated that I was denied the ability to obtain an in-school forbearance request because I had exhausted the maximum amount of in-school forbearance. I was baffled because a Forbearance request had been approved XXXX XXXX of XXXX, and I simply was asking for an additional Forbearance term to finish the last of outstanding work related to my academic education that was slowed on account of contracting the XXXX virus in Late XXXX XXXX of XXXX, and the disruption that all students have faced due to the XXXX pandemic. Now, Wells Fargo extends Forbearance beyond the maximum time, my request thru XX/XX/XXXX was such a case ( See Complaint Number XXXX ) These requests are manually evaluated by their underwriting division. I contacted Wells Fargo and inquired about the denial. The representative reviewed the notes and read them to me. The notes specifically stated that the denial was because " I had reached the maximum forbearance period, had been in-school for twelve ( 12 ) years working towards a degree, for which six ( 6 ) of those years was to obtain a XXXX XXXX. '' I was shocked, and offended because no one had contacted me from Wells Fargo for additional information. To be clear, I hold a XXXX XXXX XXXX in XXXX that was conferred in XXXX. I hold a Masters of XXXX. The two ( 2 ) final degrees that WF approved thru XX/XX/XXXX were for an additional dual-degree research-based XXXX XXXX XXXX in XXXX. On XXXX XX/XX/XXXX a representative from Wells Fargo named XXXX explained that from an evaluation standpoint a single XXXX XXXX is not evaluated any differently than pursuit of dual masters degrees. XXXX further explained that the evaluation would be different if I was pursuing receiving a PhD. The maximum in-school Forbearance time for private student loans originating with Wells Fargo for masters degrees is around one-thousand ( 1000 ) days. No subsequent time is allotted for additional masters degrees. Thus, a student that may have a learning XXXX, but who may pursue additional advanced degrees is treated differently than a student obtaining n-number of masters degrees because a student without a XXXX would spend " less '' time pursuing a single XXXX XXXX and be able to defer student loans during the pursuit of additional masters degrees within the same time-frame it would take a student with a learning XXXX to finish a single XXXX XXXX. Therefore, Wells Fargo gives preferential treatment to those students who are deemed to have normal brain chemistry and normal brain structure. In my case, the duration of my total academic education is reflective of the struggle I've faced as an individual with a documented learning XXXX that is on-file with the academic institutions I've attended. Not only does Wells Fargo fail acknowledge the extended time a " XXXX '' student XXXX need to complete a single advanced degree, but additionally fails to understand the discrimination that individuals with XXXX face when pursing their advanced degrees. For instance, I have been on the receiving end of discrimination by faculty and staff members at the institutions I've attended because the request for reasonable accommodations was viewed as " inconvenient '' for certain instructors to implement, despite the protections I am entitled to under the respective University policies and under Federal law as a member of a protected class. for students with documented XXXX, but fails to understand that those with learning XXXX are subject to discrimination when completing their academic programs. The fact that I am also a minority based upon my ethnic background only magnifies the discrimination. Now, Wells Fargo has assumed that an individual will make more money by pursuing a PhD rather than two ( 2 ) or more masters degrees. Furthermore, I hold the title of XXXX XXXX when working in industry, and have an earning potential well into six ( 6 ) figures based upon my last salary. In fact, the average salary for a tenured track engineering professor with a PhD is around XXXX XXXX dollars. To put it in perspective my annual base salary with my last employer was XXXX XXXX dollars before quarterly and annual bonuses, stock options, and XXXX matching. By the time stock options, quarterly bonuses, annual bonuses, and individuals bonuses are taken into consideration, my last gross income was nearly XXXX XXXX XXXX XXXX XXXX above an engineering professor on a tenure track with a PhD. On XXXX XX/XX/XXXX Wells Fargo sent me an electronic message, that in summary was a form letter that insisted I have forbearance options under a declared disaster, but that in contrast to the in-school forbearance any derogatory covering the beginning of the forbearance period would not be backdated to include the time to process the forbearance. This is in stark contrast to an in-school which removes any adverse payment history furnished to the CRAs for backdated to the month the advanced academic program begins. Furthermore, the disaster forbearance XXXX only be applied for a XXXX XXXX XXXX XXXX three-month periods for each declared disaster, for a maximum of XXXX XXXX XXXX XXXX months of forbearance due to a disaster. Therefore it is in Wells Fargos best interest to deny my request for an in-school forbearance if they believe they can coerce/force, me into repayment within a smaller amount of time, even if it places me at significant health risk. Finally, I am an individual that made a living in defense and aerospace prior to returning to academic for full-time graduate study. Additionally I am an individual that holds, or has held, a security clearance. That is a life-binding obligation and my finances will be monitored by the Federal Government for the rest of my life. Security clearances are renewed, and modified, on an as-needed basis as determined by my employer and the Federal government. Certain positions require that my outstanding obligations be reported no more than ninety ( 90 ) days past-due. Right now, due to the turn-around time for the initial in-school forbearance evaluation my student loans with Wells Fargo are eighty-six ( 86 ) days past-due. Loss of my security clearances would make it highly likely that I would be unable to obtain a position within the fields I am currently pursuing the dual masters degrees in. Wells Fargo, is attempting to do is to compel me to leave my current academic program, obtain suitable employment, and make payments on loans that they hold. That is, XXXX is attempting to compel me to find employment of some kind during a pandemic. To be clear, the dual degree was under a fellowship and I am thus contractually required to finish it. Wells Fargo has provided no offer, nor mentioned, temporary relief due to the XXXX pandemic when XXXX XXXX has instructed private lenders to offer relief to borrowers. As my payments began in XXXX of XXXX, WF is reporting adverse credit information to compel me, a student of non-traditional age, with a documented learning XXXX, from a minority background, to obtain employment during a pandemic. Again, no temporary hardship relief has been offered, and the forbearance request under in-school deferment was denied. Intentionally or unintentionally, Wells Fargo is discriminating against me as a minority with a " learning XXXX, '' at a time when a significant portion of all United States persons are experiencing hardship due to sickness and loss of employment. It makes no sense to abandon an education that I am contractually required to finish to seek employment to pay WF. Likewise, it makes no sense for me to try and seek employment during a pandemic, especially when my line of work and/or formal education would make it likely that I would have to relocate to states currently marked as pandemic hot spots. I do not expect to be treated like this -- at all. I find it appalling that Wells Fargo would resort to such methods to maintain steady increases in shareholder equity, and to maximize profits in a low interest rate market.

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