Consumer complaint received 2017-12-14
Company: AES/PHEAA
State: CA
Product: Debt collection
Sub-product: Federal student loan debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
This complaint is centered around the practice of forcing me ( student loan borrowe ) into forbearance for a longer time period than necessary when I was recertifying my income for income based repayment programs. 

In XXXX XXXX, my payment due skyrocketed from the normal {$670.00} REPAYE payment, to a standard payment of principal and interest of over {$3300.00}. I was told that I failed to recertify my REPAYE. I believed that was false, as I contend that I had already recertified and in fact my payment under the REPAYE program increased in XXXX XXXX after I recertified in XXXX XXXX. XXXX denied any knowledge/record of a recertification in XXXX and said that I must recertify ( again ). Having no other option, I began the process. As is the standard practice during the period of recertification, I understood that my loans would briefly go into forbearance. However, I asked, and it was notated on my account, that the forbearance be for the shortest possible time period. I asked that as soon as my recertification was approved, my REPAYE resume. 

I submitted recertification, on XXXX XXXX, XXXX, I received an email that XXXX received my submission for the recertification of my plan. On XXXX XXXX, XXXX, I received an email from XXXX notifying me that my REPAYE recertification was approved. 

I expected to be taken out of forbearance in XXXX. In fact, I have a letter dated XXXX XXXX indicating my forbearance began XXXX/XXXX/XXXX and ended XXXX/XXXX/XXXX. However, I received a letter on XXXX XXXX, XXXX saying that my first REPAYE payment was due on XXXX/XXXX/XXXX, meaning I was going to remain in forbearance for the entire month of XXXX XXXX. 

I called to discuss that with a representative because I saw no reason and had no desire to remain in forbearance for the month of XXXX. My recertification was approved and I should have begun paying the REPAYE amount in XXXX not XXXX. The representative tried to help me but was told by a supervisor that it is XXXX XXXX  policy to keep a borrower in forbearance up to 60 days when recertifying. I argued that my recertification was approved and this tactic was improper. No help was offered. The result, of course, was that capitalized interest was added to my account for both XXXX and XXXX XXXX. My argument is that adding capitalized interest for the month of XXXX while forcing me to remain in forbearance was an abusive tactic and a way for XXXX to churn fees and deceive borrowers. The total interest added to my loans for the forbearance period of XXXX and XXXX is not insignificant - it amounted to {$6400.00}. In two months time, by no fault of my own, my loan balance increased by {$6400.00}. It 's unfathomable. 

Later, on XXXX XXXX, XXXX, an additional {$2700.00} was added to my account as capitalized interest from being in forbearance. I do n't know what that interest amount stems from and have not received an answer. 

Please help stop this practice.

Company response to consumer: Closed with explanation