Consumer complaint received 2019-02-19
Company: AES/PHEAA
State: CT
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
This complaint is about a Student Loan that was taken back in XXXX in the amount of {$33000.00} at a variable interest rate of 7.44 % with XXXX XXXX made payable to XXXX XXXX University in XXXX CT. 

My current issue is that the loan principal amount has not decreased ; the interest rate is now 9.75 %. From XXXX to current day, I have paid {$33.00}, XXXX and as per the bank, the principal amount due on the loan is still {$38000.00} with new monthly payments of {$450.00}. At this rate, I am never going to finish paying off that loan. 

I sent an email to AES around XX/XX/XXXX asking for someone to review the loan ; provide me with an explanation as to why this loan is not decreasing but keeps getting higher and higher each year. I was told that I was on a payment plan and that the unrealized interest became realized XXXX of XXXX. I never knew I was on some kind of payment plan. In addition, even if I were on a payment plan that still does not explain or makes any kind of sense as to how {$33000.00} was applied to {$33000.00} loan and still owe {$38000.00}. That sounds like borrowing money from the mob. 

If I knew I would be the one paying this loan off, I would have never co-signed. However, Im trying to do my due diligence as the cosigner with making sacrifices every month just to keep, leaving medical bills behind and other house hold bills but Im not seeing a difference with the balance. This is highway robbery. How can someone borrow {$33000.00} dollars, payed {$33000.00} and still owe {$38000.00}. Something is definitely not right. 

As stated in my first paragraph, this complaint is directed to XXXX XXXX. Payments are made online to American Education Services. This is the portal that I use to log into my account to submit payments. http : //www.aessuccess.orgXXXX I am the co-signer for my nephew XXXX XXXX who was here as an international student. He left XXXX XXXX due to hardship reasons and finished college outside of the US. The intent was to obtain gainful employment to pay the loan but he has not been able to and I have been responsible for making these payments as best as I can. 

I can not afford to continue making student loan payments of {$450.00} to XXXX with no light at the end of the tunnel for paying off this loan. I do not have a copy of the original loan promissory note but I have included a copy of the latest statement and other supporting documents. The website does not have a history of what I have paid each year on the loan but I have been keeping very good records of my payments. 

In XXXX, I made a total of {$1200.00} in payment. The monthly payments were {$180.00} due to my request for forbearance. In XXXX, Total payments made was {$2900.00}. XXXX, payments made for the year was {$4300.00}, XXXX, payments made for that years was {$4700.00}, XXXX - {$5100.00}, XXXX - {$4800.00}, XXXX - XXXX and XXXX, {$5100.00}. If you add these all up, you should get {$33000.00}. 

I beg you to please help me see an end to this nightmare. If all the payments that Ive made has only been applied as interest, this is wrong. This is robbery, this should not be happening. The bank has to do something about this loan because Ill be dead before I can ever pay it off at this rate.

Company response to consumer: Closed with explanation