Consumer complaint received 2017-09-14
Company: Utah System of Higher Education
State: NC
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 have 7 total XXXX student loans and 2 Consolidation loans serviced by XXXX, who took over as my loan servicer from XXXX in XX/XX/XXXX. I have been making regular monthly payments on a fixed repayment schedule for all of nine loans on my account. I have 100 % on-time payments, and believe that I qualify for interest rate reductions that have never been applied to 5 of my XXXX loans. As a result, I believe I have overpaid interest significantly over the repayment history of the loans. 

Five of my XXXX XXXX ( disbursement dates XX/XX/XXXX,XX/XX/XXXX, and XX/XX/XXXX ) have a 6.55 % interest rate and on the XXXX online account summary for each of these loans, the loan details show potential rebates after 12, 24, and 36 on-time payments. Aside from this general statement of eligibility, no status is given nor indication of number of payments until the benefit becomes active. I believe I should have qualified for each of these three rate reduction milestones several years ago. Additionally, timely payment benefits for XXXX loans are also listed in the XXXX section of XXXX XXXX website. 

I first emailed XXXX customer service around XX/XX/XXXX and did not receive a response. I made a second email attempt in XX/XX/XXXX and did not receive a response. I called XXXX on XX/XX/XXXX and reviewed the issue with a XXXX representative. The representative acknowledged that my loans appeared eligible for interest rate reduction, and that an inquiry would be sent to the loan processing department, and I would hear back soon. 

I called back on XX/XX/XXXX and spoke with a XXXX representative who acknowledged record of the previous inquiry into the loan rate reduction. The XXXX representative needed some time to look into the matter, but said she would call me back. I received a call back that day and the XXXX representative stated that my 5 XXXX XXXX were eligible for a 3 % interest rate reduction, which would be applied to the accounts within 2-3 weeks after approval by management. The XXXX representative also acknowledged that these rate reductions would be retroactive to the date on which the loans were eligible to receive them. In addition, the XXXX representative stated that 2 of my other Stafford loans ( at interest rate 6.8 % ) were eligible for a .25 % interest rate reduction. 

I spoke with the same XXXX representative on XX/XX/XXXX who indicated that after review, the 5 XXXX loans are not eligible for a rate reduction. When asked what changed after management review to make them ineligible, the representative did not know or have access to the review documentation. I requested the documentation that resulted in the determination of ineligibility for interest rate reduction, but the representative did not seem to think that I would be granted access to the documentation.

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