Consumer complaint received 2022-01-27
Company: AES/PHEAA
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
XX/XX/XXXX Dear Sir or Madam : I am writing for assistance with an issue regarding my student loans ; specifically an interest capitalization the amount of which was not clearly disclosed and has drastically impacted my loan amount and the interest which has since and continues to accrue. 
I graduated in XXXX and had my loans consolidated in XXXX. In XXXX of XXXX, my loan amounted to {$110000.00}. Since that time, I have been unable to find employment at a level that has allowed me to cover the interest or principal amounts. Although I have more than once experienced difficulty renewing my Income Based Repayment plan with my current loan provider, the major issue which I would like investigated occurred as a result of my moving to the XXXX XXXX for work and my subsequent return to the US. 
I first moved to XXXX XXXX in XXXX after having been unemployed for several months. In XXXX, when I went to renew my XXXX plan, my regular documentation was not accepted. Although I should have sought legal assistance then, I ended up accepting a forbearance at that time which amounted to {$7400.00} being capitalized onto my balance. 
I returned to the US in XXXX and encountered additional problems when I attempted to recertify in XXXX. Beginning in XXXX of that year, I repeatedly submitted various documents indicating my income ; however, my application met with delays in approval. By XXXX of that year, my XXXX still had not been approved and I was informed that my account would be delinquent if I did not pay {$1300.00} that month. As I was unable to pay that amount at the time, I reluctantly agreed to accept another forbearance believing it was the only way to secure additional time for the loan holder to review my paperwork. However, it was not until after the forbearance was actually issued that I learned the amount to be capitalized onto my balance : {$41000.00}, almost six times the amount of the previous forbearance. 
In XXXX of XXXX, I was informed by a representative from the loan company that I had provided more information than was needed to process my application and told exactly what to write in order to be approved. This is information that could have been provided to me much earlier in the process and would have allowed my XXXX to have been approved in a more timely manner thus preventing my being placed in a position where I might face delinquency. 
When I received a second notice of payment due, I called and was offered another forbearance but told that I still had time to decide prior to the deadline so I declined. However, a request was still entered into the system. I was later informed that my application had been accepted by the time of that call and that the other forbearance should not have been offered nor processed. Regardless, two additional forbearances were processed in XXXX and XXXX of XXXX, totaling {$1900.00} and {$770.00} respectively. 
Under the advisement of a representative from the loan holder, I sent numerous letters detailing what occurred as she said that, having not been properly informed of the interest amount, the forbearance could and should be reversed. Likewise, it was that representative who informed me that the second forbearance which occurred in XXXX should not have even been offered. I am not certain how the one for XXXX came about. 
Despite repeated attempts at writing their Office of Consumer Affairs and Ombudsman, I was unable to get any assistance. Unfortunately, at that time I was unaware the CFPB could help with matters such as this so I resigned myself to the belief that I had no further recourse and had been duped into worsening my situation. I find it difficult to believe that this can be a legitimate and legal practice. Had I been informed of the extent to which my loans would be impacted, I would never have agreed to those terms. I maintain that I provided more than enough information to the company early on in the process to show that my XXXX should have been approved well before the XXXX payment was requested. 
I feel that no consideration was given to me despite making payments even when my expected payment was zero dollars. Likewise to my providing documents to prove my income level. I believe that in both XXXX and XXXX, the recertification process was dragged out and that I was misled into a situation that has compounded my debt to a level that I will never be able to manage. Especially now with the interest capitalization and the exponential growth of this debt with the new interest that is being charged on the principal. 
I am including the financial activity on the loan which I have been able to compile, as well as several of the letters I sent the loan holder. I will greatly appreciate any assistance you may be able to offer with regard to assessing what transpired. I hope there is some remedy to this situation as I am unable to see a way to further address it without some mediation as I was unable to resolve anything directly with them. As of this date, my current balance is {$220000.00}. This is approaching twice the amount I originally borrowed as Federal Student Loans and my employment situation remains unchanged. 

Thank you in advance for your time and consideration. 

Kind regards, XXXX XXXX XXXX

Company response to consumer: Closed with explanation