Consumer complaint received 2019-09-23
Company: AES/PHEAA
State: CA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Problem with customer service

Complaint:
This loan started with the US Department of Education as it is a federal student loan. The payment was {$50.00} a month which is very manageable. In XXXX of XXXX  I bought a home and our broker at the time inquired about this loan because of the small payment amount of {$50.00}. Our broker, my wife, and I made a conference call to the department of education. The representative confirmed the {$50.00} per month payment and promised all of us that the amount would never raise. The amount would be {$50.00} forever. Not long after my loan was sent to XXXX where immediately my payment went up. At some points as high as {$800.00} per month. Immediately I have been lied to. Each year I have to recertify my Public Service Repayment Plan program because after 10 years my loan is forgiven. In XXXX I tried to recertify as I have every year and I was denied. They said I filled out my application incorrectly. So I completed the application again and again everytime denied because I filled it out wrong so they said. I had a representative walk me through how they wanted it filled out over the phone and still it was denied. Several months have gone by at this point. Frustrated I looked online to see where I can get help and I found out about the Ombudsman Department. I contacted them and immediately a representative responded. I started to feel good about this. The representative had me fill out the application and I did so just like I had every time before. I was immediately approved. I did nothing different. I don't know why I was denied as my ombudsman application was exactly the same as the 13-14 previous applications. I didn't know why they had denied me and they couldn't explain it to me either. Then when I received a statement I realized that they had charged me interest for the past year of applying to recertify my loan. They didn't take a payment but they charged me more interest than I would have paid. Now my loan is supposed to be forgiven after 10 years but What will happen now? Will I be payed back for that year I lost filling out applications? I asked them and I received no answer. I want to know if that year they took from me will apply to the 10 years of the loan or if I will now have to pay for 11 years. They took a year of my life. I am convinced they purposly denied my applications to get more money out of me. They only have 10 years to get money from me but if they hold my payments and make me fill out applications for a year thats another year of interest I have to pay. So instead of 10 years I pay 11 years of interest. Its an attempt to get more money from me. I know this. 

This loan which started at {$50.00} per month was at over {$800.00} per month but now at around {$580.00} this is too much money for me to handle. They take my wife 's income into account but they don't account for my other loans, my wifes loans, or any of our other financial obligations. I have no problem making a payment but I want it to be manageable.

Company response to consumer: Closed with explanation