Consumer complaint received 2018-03-07
Company: AES/PHEAA
State: IL
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 completed a filed a XXXX Loan Forgiveness Application XX/XX/XXXX. This was at the end of my 5th year XXXX XXXX at XXXX XXXX XXXX on the south side of XXXX. It took FedLoan ( my loan company ) 2 months to respond with a denial. The reason I was denied was because I checked the correct box. This box stated, " I have applied for or received loan forgiveness under this XXXX  Loan Forgiveness Program. '' I applied for this same XXXX Loan Forgiveness Program the year prior, as I had completed 4 years at XXXX XXXX XXXX and 1 year at XXXX XXXX. Both XXXX are in the south side of XXXX. Both XXXX are high poverty, high need, 90 % free and reduced lunch. The reason I was denied in XXXX, XXXX was because I did not complete 5 years at the same XXXX. However, it clearly states on the XXXX Loan Forgiveness Program Application that I needed to complete 5 years in a high need, high poverty XXXX on the list of approved XXXX. Both XXXX are on that list. I was incorrectly denied loan forgiveness. In addition, I checked the correct box as I had " applied for OR received loan forgiveness '' as I had applied in the past, but was denied. 

I called Fedloan last Monday, XX/XX/XXXX, and after XXXX minutes on hold I finally spoke with XXXX ( ID # XXXX ) who transferred me to XXXX ( ID # XXXX ). She explained that I should have checked the box that stated, " I have not previously applied for or received loan forgiveness. '' ( Even though I HAVE previously applied ). In other words, Fedloan required me to incorrectly fill out a form in order to apply a 3rd time for the Loan Forgiveness amount of {$5000.00}. 

Over the last 19 months, I have accrued over {$600.00} in interest, when my loan should have been reduced by {$5000.00} because I DID IN FACT QUALIFY and DID IN FACT APPLY for the XXXX   Loan Forgiveness Program. I can only conclude that FedLoan is participating in fraudulent practices and continues to do so at the the detriment of hard working, public high XXXX  XXXX  on the south side of XXXX. 

This continued headache, pushback, hassle, noncompliance, and misinterpretation and incorrect definition of terms such as " OR '' has led me to the correct conclusion that FedLoan is taking advantage of loan holders. 

When I graduated from my Reading Specialist Program in XX/XX/XXXX, I was fraudulently charged the {$3000.00} already allocated to me by the Federal XXXX Loan. As I was focusing on my studies and earning my XXXX in XXXX, I was given {$3000.00} towards classes. I filed all of the correct paperwork on time and was rejected because I filled out the form correctly. I resubmitted my paperwork, that proved I finished my degree in the time allotted and secured gainful employment in the city of XXXX. I was contacted and made to pay back the XXXX PLUS interest. I am now aware that these deceitful practices continues to occur when it comes to my loan company FedLoan. 

I believe that the federal government needs to be aware of these fraudulent and harmful practices. The US government sets up programs to support students who are doing their best to improve the educational opportunities of the most vulnerable and needy public school students in our country. I have dedicated 19 years to educating the most vulnerable of our citizens. I XXXX for a high XXXX on the south side of XXXX where the average reading level of freshmen is a XXXX grade reading level. Over the last 6 years, and through my training as a reading specialist -- - the very degree I was awarded the XXXX and have applied 3 times for a mere {$5000.00} through the XXXX Loan Forgiveness Program -- I have worked tirelessly to better the lives of my students everyday. I have lost 5 students to XXXX XXXX over the last 6 years XXXX  at XXXX. More than 18 of the 30 XXXX at my school have quit because the work is so difficult and because the vicarious trauma of working at XXXX XXXX XXXX is just too painful. 

I demand both the {$3000.00} in XXXX that were taken from me back in XXXX and the {$5000.00} I should have been forgiven back in XX/XX/XXXX. I also demand the interest I have been charged on my fraudulent loans to be returned to me ASAP. NOt to mention the time, stress, and headaches I have incurred because of FedLoans illegal loan practices. If these harmful policies have continued to occur when it comes to my students loans, I am 100 % positive that they have happened in other cases as well.

Company response to consumer: Closed with explanation