Consumer complaint received 2017-10-27
Company: EdFinancial Services
State: KS
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
I have a federal student loan ( XXXX XXXX ) which is serviced by EdFinancial Services ( hereafter " EdFinancial '' ). My loan has an approximate balance of {$84000.00}. My approximate monthly payment is {$610.00}. I acquired the loan to attend graduate school at XXXX XXXX XXXX XXXX XXXX XXXX between XX/XX/XXXX  and XX/XX/XXXX. In XX/XX/XXXX, I graduated with a Masters of the XXXX in XXXX XXXX. I have maintained regular payments throughout the duration of my loan and have never been late on a payment. 

In XX/XX/XXXX, I enrolled as a graduate student at the XXXX XXXX XXXX  for a XXXX in XXXX XXXX ( XXXX ). I intended to keep my student loan serviced by EdFinancial in a state of repayment. It was my understanding after having spoken with EdFinancial that if my account were to go into a state of deferment that interest would be capitalized against my loan and that my loan period would be extended commensurate with the length of deferment. For my loan serviced by EdFinancial service, this would amount to, approximately, an additional {$11000.00} being capitalized against my loan. 

I kept my loan in a repayment status and did not pursue a deferment on my loan. It was my intention to continue regular payments on my loan, keeping it in a repayment status, in order to avoid additional interest being capitalized against my account. 
On XX/XX/XXXX I received a secure message from EdFinancial notifying me that my account would go into a state of deferment because I was enrolled as a student. I called EdFinancial Services and spoke to XXXX ( XXXX? ), Badge # XXXX. XXXX confirmed that my account was in a state of deferment even though I had not asked for it to go into a state of deferment. XXXX arranged for a one time XXXX against my loan ( because of the proximity of the repayment date ) to ensure that I would not accrue additional interest to be capitalized against my loan because of the deferment which I did not request. XXXX confirmed that the state of deferment was taken off my loan and that my loan was put back into a repayment status. 
On XX/XX/XXXX, {$610.00} debited rom my bank account as payment to EdFinancial and based on my call to EdFinancial services and discussion with XXXX, assumed that my loan was in a state of repayment. 

On XX/XX/XXXX I received a secure message from EdFinancial that my account had been placed into a state of deferment. I called EdFinancial and spoke to XXXX, Badge # XXXX. I expressed my frustration and stated it was my understanding that based on my XX/XX/XXXX call, my account was in a state of repayment and that the deferment applied against my account had been removed. I expressed my concern that the life of my loan would be extended because of the deferment applied against it ( against my request ) and that I would be required to pay additional interest as a result. XXXX confirmed that my account would stay in a state of repayment for the month of XX/XX/XXXX, with XXXX debiting the monthly payment amount of {$610.00} from my account on XX/XX/XXXX and that no additional interest would be capitalized against my loan. 

On XX/XX/XXXX myy regularly scheduled loan payment should have occurred but did not. I did not check my bank account to make sure the repayment amount debited until XX/XX/XXXX. 

On XX/XX/XXXX I checked my bank account and my student loan amount for XX/XX/XXXX, scheduled to be debited on XX/XX/XXXX had not debited from my account. I checked EdFinancial.coms secure message service and found that my account had again been placed in a state of deferment on XX/XX/XXXX, approximately one week after my call with XXXX in which EdFinancial confirmed that my account was in a state of repayment. 

At approximately XXXX central time, XX/XX/XXXX I called EdFinancial Services. I spoke to XXXX, Badge # XXXX, who confirmed that my account was put in deferment and taken out of a repayment status. XXXX confirmed that for each month of deferment applied to my account, the life of loan would be extended accordingly. XXXX confirmed that in XX/XX/XXXX, {$440.00} of interest was applied to my loan and that my loan period was extended by one month. He confirmed that the period of my loan would continue to extend if kept in a deferment status. XXXX confirmed that he would be able to put a flag on the account to keep the loan in a repayment status and take it out of a deferment status. I expressed my concern that EdFinancial would not be able to keep my loan in a repayment status based on my experience from XX/XX/XXXX.  XXXX confirmed that my loan period was extended by one month, with {$440.00} interest to be capitalized against the loan, in spite of my attempts to keep my loan in a repayment status in order to avoid additional interest being capitalized against my account. XXXX said he was unable to help me recoup the interest capitalized to my account as a result of EdFinancials placing my loan in a deferment status, in spite of my having asked for my loan to remain in a repayment status. I asked for XXXX to escalate my call to his supervisor. 

At approximately XXXX central time, XX/XX/XXXX XXXX   escalated my call to his supervisor XXXX , Badge # XXXX. 

Supervisor XXXX confirmed that that I contacted EdFinancial services in XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX to keep my loan in a state of repayment and that I asked for in-school deferment to be removed in XX/XX/XXXX. XXXX confirmed that EdFinancial took my account out of a state of repayment and placed it in deferment in spite of my requests to keep it in a state of repayment. XXXX confirmed that in my XX/XX/XXXX call EdFinancial had told me my loan would remain in a state of repayment. XXXX informed me, as had XXXX, that my account was put it into deferment after my school contacted EdFinancial to confirm my status as a student. I expressed my concern that I had contacted EdFinancial twice to confirm that my account would remain in a state of repayment and that, based on my experience with EdFinancial in XX/XX/XXXX and XX/XX/XXXX, that EdFinancial would be unable to keep my account in a state of repayment in spite of my repeated request. The supervisor confirmed that {$440.00} in interest will be capitalized against my loan because of the account going into deferment after I had requested for two consecutive months for it to remain in a state of repayment. The supervisor informed me that I was responsible for this interest accruing, in spite of my calls to EdFinancial to keep my account in a state of repayment. 

The supervisor informed me there is nothing that can be done about the {$440.00} interest applied to the account and that I would be liable for repaying the additional interest capitalized against my account. The supervisor confirmed that EdFinancial placed my account into a state of deferment in spite of my repeated attempts to keep my account in a state of repayment. The supervisor informed me that my loan period had been extended by XXXX month because of the deferment. The supervisor informed that my account now had a flag on it that would prevent it from being placed into a state of deferment unless I requested it. I expressed my disbelief at this based on my experience dealing with the company.

Company response to consumer: Closed with explanation