Consumer complaint received 2023-04-05
Company: AES/PHEAA
State: MD
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
I have repeatedly been reaching out to AES and PHEAA to resolve the following issues since XXXX? Upon AES receiving my loan, Both AES and PHEAA were notified repeatedly that I was victim of a consolidation scam with a company who claimed to be a federal government program since AES took this loan and PHEAA was the guarantor. Why was nothing ever done about this by either PHEAA or AES? Why weren't any of my complaints replied to. After repeated complaints were filed since XXXX. AES and PHEAA were the servicer and guarantor who took over the fraudulent consolidation. No amounts were straightened out by PHEAA nor AES. Absolutely nothing has been done up to this date, this complaint has been submitted to XXXX XXXX XXXX PHEAA, AES and AES Ombudsman, Dept. of Education, Student Aid, AES and PHEAA. Verification of documentation used for the consolidation prior to AES and PHEAA receiving it had blackened in amounts. I have sent in actual promissory notes, checks, and loan applications to PHEAA, AES, Dept. of Education, Student Aid, and Ombudsman and nothing was done. Why was original documentation used to determined amounts owed and increased interest rates and loan amounts that were fraudulently listed remained in place after fraudulent consolidation was processed? What is troubling is PHEAA nor AES never recalled who they actually received the fraudulent consolidated student loans from nor that they were aware of the fraudulent consolidation. Yet PHEAA Bank XXXX XXXX was able to guarantee and issue the funds for fraudulently consolidated loans to AES. This was also brought to AES attention ' repeatedly as soon as they obtained the loans. The initial consolidator explained they were a federal consolidation loan program and PHEAA was also their guarantor. How is PHEAA a guarantor of a company that misrepresents itself to any borrower in a consolidation and not know they are not an actual federal government program. When these questions are asked no one answers. I was told if I agreed to consolidate my loans, my interest would decrease and my loans would be lowered. Even after, multiple complaints of fraudulent consolidation was processed neither PHEAA nor AES ever took any action. Nor did either explain during this consolidation my loans would no longer be federal government and would belong to a private and commercial servicers. In addition to not only being left uninformed, consolidation did not lower my interest rate at all and loans actually dramatically increased and increased overall owed amounts by thousands. After being ignored for several years by both PHEAA and AES. AES refused to answer how they obtain my loans to begin with back in XXXX? Why was none of it further investigated. Verification obtained was repeatedly sent to both PHEAA and AES of the consolidation scam. Nothing was never done. Maybe, I'm not asking the right questions and most certainly not receiving the proper assistance in addressing these issues. It is very unfair after being victim of a fraudulent loan consolidation program claiming to be a federal government one turned out to be a scam and fraud. Everything on my consolidation was left as is by PHEAA and AES. Nothing was changed nor reflected amounts owed prior to loan consolidation. The only response I've ever received in addressing these issues with PHEAA, AES, XXXX XXXX, Ombudsman. Is everything is as is and there is nothing that can be done. Why has no one looked into how AES obtained my students loans to begin with. How is PHEAA the guarantor and also the PHEAA Bank XXXX who paid AES in this loan consolidation transaction but was unaware the actual consolidator processed a consolidation fraudulently. In desperation to straighten my loans and begin making payments and trying to keep up with my loans during extremely difficult circumstances, homelessness, fire, unemployment. Why hasn't PHEAA, AES, nor XXXX XXXX XXXX looked complaints further prior to just passing the loan from one servicer to the next? I was taken advantage of and misled into a consolidation of my loans by a company claiming to be a federal government agency. XXXX XXXX XXXX, XXXX XXXX XXXX and PHEAA was their guarantor. There are so many different servicer 's names yet PHEAA was made aware that XXXX XXXX XXXX obtained the loan fraudulently. When I realized there were countless issues with this consolidation I began to complain about the wrongful consolidation process with the consolidator and PHEAA. Why wasn't anything done to assist me with it? They immediately sold my loan to American Education Services without my knowledge and did not notify me of this until much later. PHEAA was notified of this and did absolutely nothing. My loan was obtained via this consolidation and transferred to XXXX XXXX XXXX on XX/XX/2007. Both PHEAA and American Education Services who now have my loans were both notified of the entire fraudulent consolidation pertaining to my loans and the wrongful consolidation of loan amounts and all complaints fell on deaf ears with all parties. Although AES now has my loans and obtained them back on XX/XX/2007. This is how my account presently reads. I am disqualified XX/XX/2007 by AES for rate reduction. AES knew of my financial hardships and knew I was unemployed because they have an unemployment deferment they received during this time period. Again PHEAA did nothing nor AES has repeatedly done nothing to correct any matters brought to their attention. Amounts were dramatically increased. As shown in the Consolidation letter I obtained after searching for a very long time as to what happened to my loans after wrongful consolidation. I am requesting this matter be further reviewed and looked into. As a borrower I am tired of the scams, and calls and assuming that I am speaking with Ombudsman groups in seeking resolution when I'm actually speaking to PHEAA and AES XXXX, and other persons who claim to work for Ombudsman, who actually work for PHEAA and AES. This entire ordeal has been unfair and I am seeking answers to legitimate questions as a borrower and victim of fraudulent loan ( XXXX ) consolidation. Documentation and verification has been repeatedly sent regarding this issue to PHEAA, AES, XXXX XXXX, Ombudsman, and have attached documentation submitted to them.

Company response to consumer: Closed with explanation