Consumer complaint received 2018-05-03
Company: AES/PHEAA
State: NC
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
Synopsis : XXXX adjusted my REPAYE monthly payment inappropriately early by 2 months inappropriately, which will cost me > {$1000.00}. 

XX/XX/XXXX : I consolidated a few of my loans to make them eligible for PSLF in XX/XX/XXXX XXXX {$32000.00} ) and transferred the rest of my loans ( already eligible for PSLF ) to MyFedLoan, which was completed on XX/XX/XXXX ( {$110000.00} ). 
XX/XX/XXXX - IDR payment ( {$160.00} ) was applied to my non-consolidated loans only XX/XX/XXXX - Interest was capitalized for my non-consolidated loans although it's not clear why because my loan repayment plan did not change and I paid the same monthly payment of {$160.00} on XX/XX/XXXX XX/XX/XXXX - Make a monthly payment of {$530.00} ; this payment inlcude the {$160.00} for my non-consolidated IDR amount plus {$100.00} & {$260.00} for my consolidated loans. The increase in payment amount for the consolidated loans was explained to me as being a requirement for switching from IBR to REPAYE. 
XX/XX/XXXX - Interest on the 2 consolidated loans is capitalized XX/XX/XXXX - Interest is capitalized on the subsidized consolidated loan ; unclear why XX/XX/XXXX - Two payments for the REPAYE plan are made - {$46.00} & XXXX ( Total {$200.00} ) ; unclear why this payment was listed as 2 separate payments XX/XX/XXXX to XX/XX/XXXX : 12 payments of {$200.00} made on autopay ( dates listed below ) - XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX : IDR payments begin under the REPAYE plan and remain the same until I recertify my income in early XXXX XXXX ie, I paid the same amount from XX/XX/XXXX to XX/XX/XXXX XX/XX/XXXX : Payment recalculated based on new income certification and letter sent from XXXX stating that the " new monthly payment is effective for all payments between XX/XX/XXXX and XX/XX/XXXX '' XX/XX/XXXX : Payment recalculated based on new income certification - changed to {$330.00} XX/XX/XXXX to XX/XX/XXXX : 10 payments of {$330.00} - XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX XX/XX/XXXX : XXXX  sends a letter reminding me income certification is coming up soon. States that it must be completed by XX/XX/XXXX or my payment on XX/XX/XXXX will increase to {$1800.00} XX/XX/XXXX : I receive an email letting my know an upcoming payment is coming due. The payment has unexpectedly increased to {$1500.00}. 
XX/XX/XXXX : I call customer service to understand what occurred. I speak to 3 separate customer service representatives, who all have varying explanations. Finally, the supervisor explains that 2 of my loans ( the consolidated ones ) are on a different income verification schedule than the others and that I needed to recertify prior to the end of XXXX for those 2. Because I didn't my payment for those 2 loans went to the 10-yr amount for the XXXX payment. I present her with the letter from XX/XX/XXXX that states I only need to recertify by XX/XX/XXXX and she responds that was a glitch in the system and that there are 2 loans that need to have income certification earlier but she states that their system is not designed to include the earlier deadline. I also point out that my payment was the same through XXXX of the previous year, that my income was certified in XXXX, and is only required once per year, but she still states that those 2 loans are on a different schedule. As " resolution '', they are submitting may issue to their compliance department. In the meantime they instructed me to not make the payment of {$1800.00} and wait for the compliance departments response, which can take up to 60 days. They say that is okay because they don't report to the credit bureau 's until 90 days and if the payment is corrected they will backdate it so that I'm not delinquent. 
Post XX/XX/XXXX - I completed my income verification and my payment amount was recalculated. However, on XX/XX/XXXX I received a letter saying my REPAYE had been recalculated and would be applied starting XX/XX/XXXX. My new bill for XXXX reflects this recalculation although my previous certification was applicable through XX/XX/XXXX and so should not be applied until the XX/XX/XXXX. Depending on the outcome of the compliance department decision, they may be requesting that I pay an extra {$500.00} ( {$830.00} - {$330.00} ) for the month of XXXX and possibly the month of XXXX. In total that is > {$1000.00} for the 2 months.

Company response to consumer: Closed with non-monetary relief