Consumer complaint received 2019-05-24
Company: AES/PHEAA
State: NC
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I have contacted fedloan and notified them several times since XXXX that the public service loan forgiveness ( pslf ) date was incorrect and the number of payments credited were incorrect. Representatives continued to insist that my student loans were not in repayment status and were in school status and that was incorrect. I graduated early XX/XX/XXXX and my student loan status was changed in XX/XX/XXXX. I have received documentation from XXXX showing that my school status was updated on XX/XX/XXXX to reflect that I had graduated as of XX/XX/XXXX. Fedloan   representatives lied to me numerous times stating my loans were not updated with the Department of education or XXXX to reflect me graduating. When in actuality the loans were updated and they had failed to properly process the request and obtain information from XXXX. I began working in XX/XX/XXXX. I immediately contact the Department of Education and notified them so that my student loan forgiveness would begin. However, the representatives refused to allow my account to enter repayment so that those months would count towards my forgiveness. I was eligible and met all requirements for qualifying payments from XXXX XXXX XX/XX/XXXX. I now have six extra months of payments because of this companys willful failure to process my pslf, deceptive and unfair practices. I contacted FedLoan again at the beginning on XXXX and informed them that my pslf was incorrect and the representative responded this is normal not to have it start on time and went on to blame the school and XXXX. This practice should not be normal, especially since the school and XXXX appropriately updated my loans and they were in the correct status to receive student loan forgiveness credit those months. 

I spoke with XXXX ( XXXX ) at Fedloan servicing on a recorded call at approximately XXXX XXXX. today and he conducted an audit of the account. He specifically said on our call that Fedloan failed to timely process my consolidation request and that you all made errors on my loan verification and missed a loan which delayed the processing on my student loan consolidation. He went on to state that your consolidation department confirmed the errors were made and that you all had issues with processing at the time. Since you all messed up the consolidation it has a domino effect on everything else because it could not be processed. This error was not on my part and without the mistakes of the employees at this company my request will have been timely processed and student loan forgiveness would have begun in XXXX. You need to review the student loan database and more specifically my calls in XX/XX/XXXX and the audit that was conducted today and complaint forwarded to your internal complaint department. If you all will not correct the payments I will contact my congressperson and obtain representation to litigate this error. This has caused additional months to be added on pslf and these payments will be at a higher amount then when I started this program. I will not bear the cost of your carelessness. If you all can not correct your wrong, I expect monetary compensation for the error.

Company response to consumer: Closed with explanation