Consumer complaint received 2019-01-09
Company: AES/PHEAA
State: OH
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:
On XX/XX/XXXX, I submitted a request with XXXX XXXX  in order to switch my repayment plan to the XXXX option. ( attached ) On XX/XX/XXXX, I received confirmation that my application was received. 
The website previously stated that I would receive a response by XX/XX/XXXX. ( proof attached ). I did not receive a response by that date. As of today ( XX/XX/XXXX ), the website states XXXX XXXX   will send me a follow up e-mail by XX/XX/XXXX. 

On XX/XX/XXXX, my regular direct debit payment was made in the amount of {$560.00}. 

On XX/XX/XXXX, I received a Request to Recertify Your IDR Plan under my previous payment plan. ( attached ) On XX/XX/XXXX, I received a Notice of Administrative Forbearance. ( attached ) It instructed me that I would not have to make a payment as regularly required on XX/XX/XXXX. No direct debit from my account occurred on XX/XX/XXXX. 

On XX/XX/XXXX, I called XXXX XXXX to ask about the status of my application. As I did not request a forbearance, but rather a different payment plan. I was on the phone for a total of 33 minutes. ( I have the phone records available to back this up if needed. ) The XXXX XXXX   representative told me that in order to process my XXXX request, the loan would need to go into forbearance for one month. I was then told that I would need to make a {$5.00} payment in XXXX. Following the {$5.00} payment, I would receive a my new XXXX payment plan details. I specifically tried to make the {$5.00} payment, but the XXXX  XXXX representative specifically told me that I could NOT make the payment. Rather, the XXXX  XXXX  representative told me that the {$5.00} payment would be processed via direct debit as all of my other payments have previously been withdrawn. 

I also specifically asked if I needed to re-submit by prior year 's IDR request as stated in the XXXX   XXXX notification that I received on XX/XX/XXXX. Again, the XXXX  XXXX representative specifically told me that I did not need to do so as I had a pending XXXX application with my most recent tax returns available. 

On XX/XX/XXXX, no direct debit payment of {$5.00} was withdrawn from my bank account. Due to the holidays, I did not realize this payment was not withdrawn. 

On XX/XX/XXXX, following XXXX, I logged into my account to see what my new XXXX payment terms would be. However, I learned my account was delinquent. I immediately submitted a manual payment of {$5.00}. 

On XX/XX/XXXX, I sent an e-mail to XXXX XXXX through their website portal asking ( 1 ) why the direct debit payment was not withdrawn and ( 2 ) the status of my XXXX application. To date, I have not received a response. 

Following the new year, my loan account stated that my monthly payment was {$3700.00}. This amount was set to be directly debited from my bank account. 

On XX/XX/XXXX, I called XXXX XXXX  inquire about my account. I initially spoke with an individual named XXXX who then transferred me to a gentleman named XXXX in the Income Based Repayment Group. 

XXXX informed me that I was supposed to manually make the {$5.00} payment in order for my application to be processed. I told me this was directly contrary to what I was told on XX/XX/XXXX. He acknowledged the error. 

XXXX also informed me that because I did not re-certify my prior repayment plan, my new payment amount was set for the maximum amount possible, in the amount of {$3700.00}. I informed him I was previously told by XXXX XXXX that I did not need to re-apply for my prior repayment plan as I was being reviewed for a new plan. I told him this new payment was nearly SIX TIMES my prior monthly payment. I told him there was no way I could make that payment. 

XXXX told me that the only way for the payment to not be made was to suspend my direct debit payments. He did not provide me any other options like forbearance, notwithstanding that the delay was 100 % due to XXXX XXXX XXXX errors and delays. I asked if my loan would show as delinquent, and he said that it would. I asked if this would be reported to Credit Reporting Agencies,  and he said it would not for three months. 

I told XXXX that I submitted my XXXX application in XXXX of XXXX. He said XXXX   XXXX  has many applications to review which was the cause of my delay. 

XXXX  XXXX  is forcing my student loan to go into default due to ( 1 ) their delay in reviewing my application, and ( 2 ) their employee 's mistake on XX/XX/XXXX when I was told that the {$5.00} payment would be taken directly from my bank account just like my prior payments. 

I am also concerned that this delay will effect my application review. I really need the new repayment terms under the XXXX plan.

Company response to consumer: Closed with non-monetary relief