Consumer complaint received 2019-04-25
Company: TRANSWORLD SYSTEMS INC
State: IN
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
On XXXX I get a bill saying I owe XXXX dollars for my Perkins loans. They are a new servicer for my university. I contacted them via phone and message asking for IDR plans. Here is what I wrote : Hello. I can not afford these payments now because I am unemployed. I live in XXXX XXXX Indiana where jobs are slim to none. Unless, I work at some fast food joint. I thought I applied for that income based repayment plan and it was explained to me that that was all I have to do and my federal loan payments will be reduced. However, I have this big bill from you. Can you please help me out? I broke my phone and don't have enough money to get a new one so can you please contact me via this portal or email? 
Thank you, XXXX XXXX There was no option for it and they told me it was only forbearance. All my other servicers gave me IDR plans and these are government loans so it should be available. 
on XXXX I received this message back : Dear XXXX, Thank you for contacting XXXX  XXXX XXXX. 

As of today we are still finalizing with your lender what are the benefits avaible for this loan program, for the meantime may we advised you to download benefit form, in your portal, refer to benefit links< benefit forms. You may apply for Economic hardship, Unemployment deferment or General Forbearance, once complete you may send it to XXXX If we can be of further assistance, please call our office at XXXX. 

Sincerely, Borrower Relations XXXX XXXX XXXX, XXXX -- -- -- -- -- -- -- -- -- -- - I didn't want forbearance because I wanted to have payments count towards the number of years I was paying on time to have some of my student loans absolved after 10 years. I wrote them back : Wait. I'm confused, I don't want to be in forbearance. I thought income based repayment plans were like as if I was making payments but my payments are just low to XXXX dollars per month based on my income. I have XXXX income so I can not pay. Can you just enter in the IBR plan? I also just recertified it just in case that helps.I can send you my last tax documents. Can you tell me what I need to do to enter the income based repayment plan? NOT forbearance? 

I got the answer back : Hi XXXX XXXX, We apologize however XXXX doesn't offer income-based repayment. What we offer are Economic Hardship and Unemployment deferment which postpones payment on your loan or Forbearance which also postpones payment however interest will continue to accrue. 

If we can be of further assistance, please call our office at XXXX. 

Sincerely, Borrower Relations XXXX XXXX XXXX XXXX XXXX . 

So I called them at that number and they refused to understand and put me into an IDR. I don't need to have a doubled bill while I raise children just because interest accrues. This isn't right and no other loan servicer that I have forces these options on me. The agent spoke with a supervisor and then I was told to send the form from studentloans.gov to XXXX. 

All I got in return was this : Dear XXXX, Thank you for contacting XXXX   XXXX XXXX. 

We had informed you what are the options we had for deferment. If you want to apply for an IDR or IBR, you may apply for a consolidation. Most federal loans can be consolidated into the Federal Direct program that allows for IBR. You may visit the web site https : //studentaid.ed.govXXXX. There may be loan companies that provide consolidation of private loans and offer something similar to IBR. But please take note that consolidation is not for everyone, not everyone qualifies, and consolidation can mean the loss of some benefits from the original loan program. 

If we can be of further assistance, please call our office at XXXX. 

Sincerely, Borrower Relations XXXX XXXX XXXX XXXX XXXX . 

I have no clue why they are telling me about private loans consolidation, and why I have to consolidate to apply for IDR or IBR. No other loan servicer has this issue and this company is trying to get me to do something that will ruin me even further. I need them to do this correctly and understand what they are saying. They seem to get it wrong each time I call them.

Company response to consumer: Closed with explanation