Consumer complaint received 2017-06-08
Company: AES/PHEAA
State: CA
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:
My complaint is with Fedloan Servicing. I had sent documentation to Department of Education PHEAA for recertification of Income Based Repayment before end of lapse on XXXX XXXX 2017. I was granted approval of recertification of IBR plan with Department of Education promptly the next business day and they sent this information to Fedloan Servicing. <P/>Fedloan Servicing failed to process the recertification of Income Based  Repayment in a timely manner, resulting in the first payment going into delinquincy and adding a XXXX capitalization on my loan. <P/>I had called Fedloan Servicing, speaking with supervisor XXXX # XXXX on XXXX XXXX 2017 Monday ( my loan IBR plan lapses on XXXX XXXX 2017 ).  Fedloan servicing stated over the phone that I can request forebearance until they process the IBR recertification. I asked for a official letter sent to me documenting this so that I had legal documentation, instead of the current status of delinquincy of my student loans. He told me that I will be sent a letter of this request in 6 8 business days. He also told me that the following Payment will reflect the updated IbR recertification at {$0.00}. He told me that XXXX will be covered and the interest rate will be at same rate, with no penalty. So I can expect the letter in XXXX XXXX 2017.
<P/>XX/XX/XXXX and I have received no such letter. I am receiving notifications that my loans are delinquint and that I am 8 days overdue. Sunday XX/XX/XXXX, I received an email your IBR plan is on hold until further investigation. <P/>XXXX XXXX 2017 called about delay in IBR recertification. Was told that it is still being processed. <P/>XX/XX/XXXX Called and talked with XXXX, he apologized for delay in recertification and continued to reassure that it would not affect my credit in a negative way. I requested to expediate the process for IBR recertification and that delay in this is creating payment delinquency and that is unacceptable. I told him I still did not receive a letter or documentation of forebearance request and that their delay in processing is negatively affecting my account with them. I was told that the IBR would be processed within this week. I said if it was not processed within this week I would be filing a formal complaint with consume finance agency. <P/>It is now XXXX XXXX, 2017 and Fedloan Servicing has not processed my Income Based Repayment and I have just received another notice for this next month with the full payment amount of the loan XXXX. On top of this I have found out that when they did not process the IBR recertification in a timely manner that I received a {$6000.00} capitalization on my loan which was previously {$110000.00}. My current loan stands at {$120000.00}, reflecting the capitalization that occurred over this past months failure of Fedloan Servicing to process my Income Based Plan in a timely manner. <P/>I am still waiting for them to process the IBR plan, in the meantime the capitalization keeps racking up and also the delinquiency and they have unruly placed me in a position of forebearance, but still they have not even documented the forebearance. <P/>Please help!

Company response to consumer: Closed with explanation