Consumer complaint received 2019-01-18
Company: AES/PHEAA
State: TX
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I was diagnosed with XXXX  XXXX XXXX XXXX metastasized to my XXXX in XX/XX/XXXX, and have been undergoing treatment since that time. On Monday ( XX/XX/XXXX ) I became aware of The Department of Education Appropriations Act, XXXX ( XXXX. XXXX, the Deferment for Active Cancer Treatment Act ) which provides the following : Student borrowers with XXXX can now pause their payments Borrowers are now exempt from their federal student loan payments throughout their treatments for XXXX and then for six months afterward. 
Interest will not accrue during the postponement I am XXXX years old and have substantial student loan debt which accrues thousands in interest every year. This deferment program would help me tremendously, especially because I have a significant amount of out of pocket medical expenses I am incurring with each XXXX treatment, which includes XXXX, upcoming XXXX and XXXX etc. ; and because I have often not been able to work this past fall, secondary to the grueling side effects of XXXX. Although stage XXXX XXXX is incurable, I hope to work at least part-time as long as possible so that I continue to have medical insurance through the ACA ( rather than go on XXXX XXXX XXXX, which is my only other option ). However, my income is significantly reduced. 

On Monday and again today, I spent a considerable amount of time on the phone with multiple people from my student loan servicer, American Education Services ( AES ) which is owned by PHEAA, to ask for the paperwork to start the deferment process under this program. 

I was passed from person to person on the phone both days, and today I finally reached a manager who relayed that, although my student loans are Federal Student Loans, American Educational Services is NOT a Federal Student Loan Servicer, so they do not have to comply. My federal loan servicer has changed several times ( not by my choice ) and the loans were recently taken over by AES this past fall. I don't understand how my federal student loans can be taken over by a non-federal student loan servicer, or how AES can actually service federal student loans if they aren't a federal student loan servicer. 

The manager from AES went on to say that although my loans are, in fact, federal loans, because my loans are older than XXXX, apparently the year when the Federal Student Loan program changed, I am not eligible for the XXXX deferment program ; and furthermore, " because AES is not a federal student loan servicer they do not have to comply with the Deferment for Active Cancer Treatment Act   anyway. '' The AES/PHEAA manager could not explain why the date when my loans were taken out made a difference, or how the federal student loan program had changed in XXXX. 

When I got off the phone today I researched AES/PHEAA and discovered out that the company is less than scrupulous and that there have been numerous complaints made by loan holders. 

I have already reached out to Congresswoman XXXX XXXX XXXX 's office on Monday ( I am a constituent ) and have heard nothing in return. Right now I am in tears and am physically ill and do not know who else to contact. I was hoping you might be able to help.

Company response to consumer: Closed with explanation