Consumer complaint received 2019-11-29
Company: AES/PHEAA
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
FedLoan Servicing is still not following my loan payment instructions, even after two previous CFPB complaints and sending them an instruction letter as recommended by the CFPB ( Sample Letter To Your Loan Servicer ). In FedLoan Servicing 's response to my last CFPB complaint, FedLoan Servicing said I should not include their billing stub with payments that have specific loan targeting instructions in order to have those instructions followed. This sounded fishy to me and it turns out it was in fact false. I did not include a billing stub with my last few payments and my payments are still NOT being processed according to my instructions, which is causing extra interest to accrue on my loans that would not otherwise be accruing if my instructions were being followed. Some, but not all, examples are : 1. An additional {$200.00} principal payment FedLoan Servicing processed on XX/XX/XXXX should have been applied only to the principal of the loan disbursed on XX/XX/XXXX with an interest rate of 4.66 %, but it was instead applied to the principal AND INTEREST of all the loans. Only {$24.00} principal was applied to the noted loan. I did not include a billing paymnet slip with this payment as instructed by FedLoan Servicing. I have included the XX/XX/XXXX bill along with the payment instructions for both payments I made in XXXX. I have also included the payment history details for both these XXXX payments ( XX/XX/XXXX & XX/XX/XXXX ) showing how FedLoan Servicing incorrectly applied these payments. 

2. A payment of {$360.00} FedLoan Servicing processed on XX/XX/XXXX should have had around {$120.00} in additional principal applied to the loan disbursed on XX/XX/XXXX with an interest rate of 4.66 %, but that loan only had {$45.00} applied to the principal for that loan and payment. I did not include a billing payment slip with this payment as instructed by FedLoan Servicing. I have included the XX/XX/XXXX bill along with the payment instructions for the payment I made in XXXX. I have also included the payment history details for the XXXX payment ( XX/XX/XXXX ) showing how FedLoan Servicing incorrectly applied this payment. 

3. A payment of {$360.00} FedLoan Servicing processed on XX/XX/XXXX should have had around {$120.00} in additional principal applied to the loan disbursed on XX/XX/XXXX with an interest rate of 4.66 %, but that loan only had {$39.00} applied to the principal for that loan and payment. I did not include a billing payment slip with this payment as instructed by FedLoan Servicing. I have included the XX/XX/XXXX bill along with the payment instructions for the payment I made in XXXX. I have also included the payment history details for the XXXX payment ( XX/XX/XXXX ) showing how FedLoan Servicing incorrectly applied this payment. 

4. A payment of {$360.00} FedLoan Servicing processed on XX/XX/XXXX should have had around {$120.00} in additional principal applied to the loan disbursed on XX/XX/XXXX with an interest rate of 4.66 %, but that loan only had {$42.00} applied to the principal for that loan and payment. I did not include a billing payment slip with this payment as instructed by FedLoan Servicing. I have included the XX/XX/XXXX bill along with the payment instructions for the payment I made in XXXX. I have also included the payment history details for the XXXX payment ( XX/XX/XXXX ) showing how FedLoan Servicing incorrectly applied this payment.

Company response to consumer: Closed with non-monetary relief