Consumer complaint received 2019-08-04
Company: AES/PHEAA
State: VA
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:
My loans were being serviced by XXXX XXXX and I was on the IDR plan. I was instructed to do this so I could qualify for the Forgiveness program for Public Service. Once I requested my work verification and sent that in I was notified that I would need to change loan servicers. I made my XXXX payment to XXXX XXXX because I had not yet received anything from my new servicer. I thought the transition would be smooth since I had already reapplied for the IDR plan in XXXX and was given a letter stating it was approved. I then received a letter in the mail from FedLoan stating they were my new servicer. I then received a bill in XXXX stating I was past due the amount of XXXX ( which was paid to XXXX XXXX XXXX and that my current payment was XXXX. This was all due XX/XX/XXXX. I called and spoke to a representative named XXXX. He stated they took over my loan XX/XX/XXXX and my due dates are on the XXXX of each month but since the holiday was coming up that was why my paperwork had not come through. I shouldn't worry and that the system would update after the holiday and fix the account. I waited a few days after the XX/XX/XXXX holiday and called back. I spoke to XXXX and she told me the same thing. The system hasn't updated and I shouldn't worry. I asked if I could still continue making my payment since I didn't want my payment plan messed up. She said I could. Then she transferred me to another department. The lady I spoke to assured me that the IDR was being processed and that this would not mess up my payment plan or the timeline of my loan forgiveness. I made a payment of XXXX for XXXX. I got another letter saying my account was past due. I called back on XX/XX/XXXX and spoke to XXXX. I expressed my concerns over this. At this time my IDR payments increased and I was given a letter stating that XXXX was my new payment. XXXX proceeds to tell me that the only way I can get the past due amount off my account is to go into forbearance. I didn't like this idea due to my forgiveness program and payment plans. I asked her to ask a supervisor. She came back and told me the same. Then when I asked her what the supervisor 's name was she admitted that she spoke to an XXXX and someone else that she didn't know their name and that neither of them was actually supervisors. I finally agreed to the forbearance because I was so distraught over the whole situation. I kept an eye on my account and saw that nothing had changed. On XX/XX/XXXX I spoke to XXXX and he told me I was XXXX past due and I was in forbearance. I told him I needed to make my XXXX payment before the due date of the XXXX but that I couldn't because the account was still inaccurate. He told me not to worry and to just wait until XXXX XXXX, XXXX, and make my payment and the past due would be cleared. On XX/XX/XXXX, I logged in to make my payment and the account is still inaccurate. I can't make my payments and I can't call because it's a weekend. I have been told not to worry for three months and nothing has changed. When I express that I don't want this to go on my records or that I'm afraid this is messing up my repayment timeline I get -- '' Don't worry, the computer will update. '' The bad part is that I already had one {$94.00} payment in XXXX not go towards my repayment plan because of them putting me in forbearance. I need answers and help with resolving this issue. I have ten years to pay to qualify for the loan forgiveness and this servicer has been a nightmare from day one. I fear my whole plan has been thrown off track because of them.

Company response to consumer: Closed with explanation