Consumer complaint received 2016-08-07
Company: AES/PHEAA
State: GA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
I am writing to complaint about FedLoan Servicing Company which is holding my student loan account. FedLoan servicing company placed delinquency of late payment [ 90 days ] in my credit file. Please have this delinquency of late payment removed from my credit file because I have forbearance plan from XXXX/XXXX/XXXX to XXXX/XXXX/XXXX as the national student loan Data shows. When I found out, I wrote a letter to them stating that I have Forbearance from XXXX/XXXX/XXXX to XXXX/XXXX/XXXX. FedLoan employees admitted the processing took three months [ 3 months ] that why reason you being report to credit bureaus as delinquency for 90 days. When I called them to ask if they sent me any notation letter, they replayed that it is not their job. I called FedLoan but they refused to listen to me and they said that they ca n't remove the delinquency. They said I have to deal with it. I found out that FedLoan Servicing 's errors in calculating my monthly payment and I asked to clarify but they did not. I can say without any hesitation, without any reservation, that FedLoan Servicing ( which is an arm of the Pennsylvania Higher Education Assistance Association, or PHEAA ) is by far the worst of all of them. Based on a XXXX, a full XXXX % of borrowers who have loans with FedLoan Servicing have experienced at least one serious problem during the past six months was entirely caused by FedLoan Servicing. That is nearly XXXX out of XXXX borrowers. FedLoan Servicing 's failures are as broad in type as they are deep in volume, and they span nearly every fundamental task that the agency is supposed to be performing. Here are some specific examples of FedLoan Servicing 's incompetence : 1- Unacceptable delays : May student loan borrowers have been waiting for months to have their request for income-driven repayment processed and approved. Some people have waited six months or more for decisions on these programs. While they wait, borrowers are faced with a choice to either make impossible payment under a balance-based plan, or use up their forbearance while interest accrues. And of course, borrowers can not make progress towards loan forgiveness. XXXX wrote a detailed article on FedLoan Servicing 's delays. The U.S. Dept. of Education said that FedLoan Servicing would be improving. It has not. 
2- Payment calculation errors : With the rollout of the new Revised Pay As Your Earn ( REPAYE ) plan, FedLoan Servicing 's errors in calculating a borrower 's monthly payment under income-driven plans have increased substantially. In particular, FedLoan Servicing has been improperly factoring in spousal income for borrowers re-certifying for the ICR/IBR/PAYE plans, even where those borrowers file taxes separately from their spouse and under federal law, spousal income should be excluded. When FedLoan Servicing makes a mistake in calculating a borrower 's monthly payment, the borrower often pays the price-either in the form of making those higher payments, or by requesting a costly forbearance, while FedLoan Servicing takes its time to review the file. 
3- Misinformation : If you talk to a FedLoan Servicing customer service agent and they provide you with information that seems incorrect, politely end the call, and call back later to speak with someone else-they will almost certainly get a different answer. Student loan borrowers rely on loan servicers to provide them with complete, accurate, and up-to-date information about their loans. When servicers instead provide misinformation or inconsistent answers, borrowers are lost, and it can cost them. FedLoan Servicing 's customer staff can also come off as disinterested, unmotivated, or downright rude. 
Finally, please have this delinquency of late payment removed from my credit file due to incorrect information, errors, confusing, delay processing my forbearance application.

Company response to consumer: Closed with explanation