Consumer complaint received 2019-04-19
Company: AES/PHEAA
State: OR
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 received an email in XX/XX/XXXX, that my student loans would be coming due soon ( 1/2 way through grace period ). I was enrolled in two schools on quarter systems and enrolled in a total of 9 quarter credits-starting in XX/XX/XXXX when I got this letter. I had just completed 4 credits at one school 2 weeks prior to this letter ( so rightfully in grace during the prior term ). However 9 credits for the upcoming term is over the 1/2 time requirement necessary to keep/get " In-School '' status set fourth by the US DEPARTMENT OF EDUCATION and student loan program. I ignored it thinking they had just not been updated about my enrollment for the upcoming term. 

It should be noted that at my university, I am in the dual enrollment program with the local XXXX  colleges. I DO NOT currently receive any financial aid, at any school. I am not requesting any financial aid at any school. 

I then received additional emails about repayment at the end of XX/XX/XXXX). I emailed them XX/XX/XXXX. 

I contacted my loan servicer showing proof of enrollment in the 9 credits, and told them I was told by my schools financial aid office, that I should not be in, or nearing repayment as I am enrolled in 9 credits. My loan servicer said I needed a form called " The  Consortium Agreement ''. I told my school, my school said a consortium agreement is only given when students are getting financial aid- so you don't get financial aid at more than one school, and so they can determine how much to give you. They said it is not necessary to prove your enrollment status, and the only thing my loan servicer needed was proof of enrollment in at least 6 credits ... Found in the National Student Loan Database. This was provided, as was screenshots of my registration page from both schools. My servicer responded again saying I needed the consortium agreement. 

I have searched online for proof of this requirement, because after speaking to the financial aid offices at both schools, both said the same thing. And my federal loan servicer is refusing to give me in school deferment for Winter XXXX ( XXXX XXXX XXXX XXXX ) without that form. I should have entered my grace period after this term. Nothing online outlined by the department of education says this is required. The requirements for in-school deferment are that you are enrolled in a department of education approved program at least 1/2 time. I was enrolled over 1/2 time in an approved dual enrollment program. My servicer can not make up fake terms to try and collect money and apply interest unlawfully to my loan when I should have been in " In-School Deferment '' and should now be in my first month of " Grace-Period ''. 

Note : Attached is an email from my loan servicer. An email from my registration office- I resubmitted my co-enrollment application thinking maybe something went wrong or maybe it had been too long since I was last co-enrolled. They emailed my back saying my enrollment status in the program was still active. I then emailed financial aid- asking about the co-enrollment form- they said I needed to do my fafsa- I asked why I needed a fafsa if I didn't want financial aid, I just wanted to prove enrollment status, they responded ( attached as well ) saying that the form is only needed if receiving financial aid. This is when I called them- fully explained what was going on, and they confirmed to me that Consortium Agreements are used to determine how much students can get in financial aid and so they don't get financial aid at two schools. Neither of which is necessary for someone not getting financial aid.

Company response to consumer: Closed with explanation