Consumer complaint received 2019-12-30
Company: WELLS FARGO & COMPANY
State: NM
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
This complaint is being filed on behalf of me, the cosigner of my daughter 's student loan with Wells Fargo XXXX XXXX XXXX. ( XXXX # XXXX ) I recently contacted Wells Fargo XXXX XXXX XXXX ( XXXX ) to discuss the final payment of my daughter 's ( XXXX XXXX XXXX ) student loan, after my daughter informed me that she would be laid off from her job at the end of this year. She currently owes {$14000.00} on the loan. During my discussion with XXXX, to settle her debt, they asked me if my daughter had graduated. I told them that she had in XXXX ofXX/XX/XXXX. To which I learned that my daughter would have qualified for a. 0.25 % interest rate reduction on her loan if she had graduated, under their " Wells Fargo XXXX XXXX XXXX program. '' However, because she had failed to inform them that she had graduated, XXXX continued to charge her an additional .25 % interest and they refused to back date the graduation benefit to the date of her graduation when I offered to settle her debt. I then asked XXXX if they had told her about this benefit that she would have qualified for and they informed me they had in a letter they claimed they had sent her at the time her loans became due for repayment. I then asked XXXX to provide me with that letter. 

Later, In a letter sent by them on XXXX, XXXX sent me a response and they only included a copy of my daughter 's original final loan disclosure ( dated XXXX ) which made no mention whatsoever of her eligibility for a .25 % interest rate reduction upon graduation. I then contacted the representative who sent me this letter about it and, to date, he has not returned my call. 

If, as I suspect, XXXX never informed my daughter of her eligibility for this graduation benefit, then shouldn't she have been entitled to it from the very first date she had graduated? Furthermore, it should be pointed out that my daughter had also taken two other student loans from Wells Fargo, both of which she faithfully paid off - and both loans probably would have offered her this graduation benefit - yet, I also suspect that XXXX failed to notify of this benefit on those as well. This means that my daughter most likely paid additional interest and fees which she otherwise would not have been obligated to pay. 

I am only seeking to pay off my daughter 's final student loan - but only at the amount she would have been obligated to pay if she had in fact been properly informed of her eligibility for this graduation benefit in the first place. Furthermore, it seems to me that offering a graduation interest rate reduction benefit on condition that you notify XXXX of your graduation - and then failing to tell the individual that they were eligible for it to begin with is at the very least a highly unethical - if not, fraudulent act in my opinion. If so, then it means XXXX is collecting thousands ( perhaps millions ) of dollars in interest that a lendee would otherwise not have been obligated to pay. 

I would greatly appreciate any assistance your agency could provide in investigating this matter. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation