Consumer complaint received 2017-10-29
Company: AES/PHEAA
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
On XXXX XXXX, XXXX, I entered into an Agreement with XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX Tx XXXX TO REHABILITATE MY DEFAULTED STUDENT LOANS, TOTAL TO {$5900.00}. My agreement with XXXX XXXX XXXX XXXX was for {$5.00} monthly Automatically debited payments from my checking account with XXXX Bank FOR THE PERIOD OF 12 MONTHS. I regularly paid my defaulted student loans as hoping to complete the Rehabilitation Program in XXXX XXXX. Honestly, I defaulted my student loans because I was ill for a long time and had no income at all for years. XXXX XXXX XXXX XXXX had my cellphone and regularly was calling me even if I paid on time my student loans. I WAS NEVER TOLD OR EMAILED BY XXXX XXXX XXXX XXXX THAT THEY WILL TRANSFER MY STUDENT LOANS IN REHABILITATION TO THE U.S DEPARTMENT OF EDUCATION on XXXX XXXX, XXXX. According to XXXX XXXX XXXX XXXX  XXXX or " How student loan rehabilitation works : You must make nine consecutive, voluntary, agreed-upon monthly payments that are received within a 10-month period ''. IN MY EIGHT ( 8 ) MONTH OF REPAYMENT, U.S. DEPARMTNET OF EDUCATION NATIONAL PAYMENT CENTER XXXX XXXX XXXX XXXX GA XXXX APPEARED TO BE A HOLDER OF MY LOANS AND SENT ME A BILL THAT I OWE THE U.S. DEPARTAMENT OF EDUCATION {$10.00} or two  months bills for my Student Loans. At the same time XXXX XXXX XXXX has had a permission to Automatically Debit my XXXX Bank Account as I was in a contract to rehabilitate my student loans with them. I moved to a new address, and receive a Welcome to XXXX SERIVICING letter dated XXXX XXXX by the U.S. Department of Education. Such letter came one ( 1 ) month after U.S. Department of Education sent me a bill " A Debt collector bill for {$10.00} '' payment due date XXXX XXXX, XXXX. THERE WERE NO EXPLANTION TO WHY I HAD TO BE TRANSFERED TO THE XXXX XXXX XXXX FROM THE XXXX XXXX XXXX XXXX XXXX  XXXX STILL HAD MY AUTHORIZATION TO AUTOMATICALLY DEBIT MY XXXX ACCOUNT. I was very appalled and confused, not realizing the GAMES THE XXXX XXXX XXXX AND THE XXXX XXXX XXXX ARE PLAYING TO MAKE ME TO DEFAULT MY STUDENT LOANS THAT I REGULARLY WAS PAYING TO THE XXXX XXXX XXXX. ON XXXX XXXX, XXXX THE XXXX XXXX XXXX sent me a Payment summary total {$10.00} due by XXXX XXXX, XXXX. I called the FedLoan Servicing, and ask my mother to help me to communicate with them the message that FedLoan Servicing placed me in involuntary DEFAULT without my knowledge or notifying me about such interruption of my Rehabilitation Program. My mother spoke with XXXX, the supervisor, ID XXXX, since I wanted to make a {$10.00} payment toward my bill ( s ) with my XXXX bank debit card, which otherwise I used for Automatic Payments with XXXX XXXX XXXX  Two XXXX customer service representatives gave us a conflicting messages : the first would take a debit card payment ; the second we were transferred refused and wanted my bank account. Then we spoke to XXXX, ID XXXX, and HE EVEN PROSEED FURTHER TO ARGUE WITH ME AND ASKED ME TO INCREASE THE MONTLY PAYMENT TO {$52.00}. We also were told that regardless, ON MY CREDIT REPORT I WILL BE REPORTED AS DEFAULTED. My mother was very upset. Not only my rehabilitation program was interrupted, but FEDLOANS Servicing PURPOUSLY defaulted my student loans. All was not my DEFAULT BUT DONE with hidden games between FedLoans and XXXX XXXX XXXX. My mother objected and stated that we called to make a payment on time XXXX due XXXX/XXXX/XXXX ), instead I was made accountable and pressed to increased my monthly payment by a FEDLoans supervisor and told that my CREDIT will be affected negatively. I DISAGREED! MY REHABILITATION AGREEMENT ( DISCLOSURE ) WAS SIGNED ON XXXX/XXXX/XXXX FOR THE PERIOD OF 10 MONTHS OR UP TO END OF XXXX. I HAD MY AUTHOMATIC PAYMENTS SCHEDULED. AND ALL WAS DEFAULTED BY THE AIM OF THE FEDLOANS TO DEFAULT MY STUDENT LOANS. THIS IS VERY DISCRIMINATORY/RETALIATORY WAY OF ONCE MORE MAKE STUDENTS DEFAULT THEIR LOANS PRESSING THEM FOR HIGHER PAYMENTS THAN THE AGREED. I MADE A PAYMENT conf. # XXXX.

Company response to consumer: Closed with explanation