Consumer complaint received 2017-07-25
Company: AES/PHEAA
State: CO
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:
XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX, IA XXXX Re :  PHEAA FedLoan Servicing Dear Consumer Financial Protection Bureau, I write to report Pennsylvania Higher Education Assistance Agency ( PHEAAs ) Fed Loan Servicing of fraudulent practices. More specifically, I have 3 student loans with PHEAAand made a payment of {$600.00} on XX/XX/XXXX in excess of the monthly due amount ( {$88.00} ). As a result, I received a PHEAA letter on XX/XX/XXXX that my next payment of {$18.00} was due XX/XX/XXXX. I also made a {$200.00} paymentXX/XX/XXXX, but my account stills shows {$88.00} will be due on XX/XX/XXXX (  please see page 4 of 7 ).
I have had numerous egregious problems with PHEAAs FedLoan. FedLoan has ( 1 ) lost my student loans payment checks in excess of {$2000.00} ; ( 2 ) caused 2 of my previously paid in full student loans to go back into repayment status where I then paid more money and interest on my 2 previously paid in full balances ; and ( 3 ) has  caused my credit scores to greatly decline due to their neglecti.e., failing computers, errors, and added interests to advanced payments. In newspaper XXXX article Massachusetts threatens to sue PHEAA over student loans ( XX/XX/XXXX ). The Massachusetts attorney general 's office is threatening to file a consumer protection lawsuit against Pennsylvanias quasi-public student loan agency over its handling of federal student loans, and may demand refunds. Massachusetts Attorney General XXXX XXXX sent the Pennsylvania Higher Education Assistance Agency a letter last week informing officials the agency was the target of an investigation and a possible lawsuit, state Rep. XXXX XXXX, XXXX-XXXX, the agencys board chairman, confirmed. The letter dealt with consumer protection issues centered around federally backed loans, XXXX said. The agency, commonly known as PHEAA, was founded in the XXXX to provide taxpayer-funded grants to needy Pennsylvanians attending colleges, universities, and trade and business schools. Over the last decade and a half, PHEAA has grown into one of the nations largest student loan servicing providers. PHEAAs two corporate units process, manage and collect more than XXXX XXXX in student loans issued by XXXX, U.S. Department of Education, commercial banks, nonprofits, and private colleges and universities. In an interview Wednesday, XXXX said the letter was sent shortly before the XXXX XXXX PHEAA board meeting and he read it in his Capitol office. Citing the litigious nature of the letter, XXXX said PHEAAs solicitor advised him not to make it public, and he declined to share a copy with XXXX XXXX XXXX. Massachusetts allegations center around several issues related to PHEAAs federal loan contracting services, and PHEAA is trying to determine how much money XXXX office claims is owed, he said. Source : ( XXXX XXXX XXXX ). For the past 15 years, I have worked as a volunteer, professor, teacher, mentor, and advisor to persons with XXXX, aiding diverse youth, refugees from than 40 countries, and have helped in city public schools. I bake cookies and treats, and spend time with the seniors in my building, as I wish to honor and continue the legacy they lead. I know you are very busy, but ask for your offices assistance in helping to resolve the many egregious errors on my PHEAA student loans and with my application for the Public Service Student Loan Forgiveness Program, please. Thank you for your time and consideration and for the extraordinary work you continue to facilitate on a daily basis. Respectfully, XXXX XXXX

Company response to consumer: Closed with explanation