Consumer complaint received 2017-08-17
Company: AES/PHEAA
State: FL
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:
Going through an MBA program and needed to take a break due to health issues. Spoke to a representative in XX/XX/XXXXabout going onto a IDR loan repayment plan. Was told the payments would be around {$150.00} a month. A representative helped me select the ( REPAYE ) option and fill out an application after being told the previous two years no lower monthly paid options are available and I would have to pay over {$500.00} a month even when I just got off of unemployment. Fine. HR verified me the next day and faxed a copy of my application in. I followed up with a copy of my application and proof of income. Fedloan denied my application stating I did not submit proof of income. I uploaded my pay stub and they stated they received it. Nothing happened. Meanwhile, I was told my account was placed on an Administrative forbearance. Kept getting e-mails stating I need to pay over {$500.00}. Called again and the representative stated I was placed on an administrative forbearance and to ignore it. Called again today and this time my account states I owe over {$1000.00}. No forbearance was placed on my account and my IDR still has not been processed. Worst, my account says I am 28 days delinquent. I have never been delinquent on an account in over 10 years. My credit report is all green from on time payments. The representative tells me on the phone that I better make a payment or I will get reported to the credit bureau. That made me angry. I asked to speak to a supervisor. She denied my request and forwarded me instead to another representative who stated I have to pay the {$1000.00} before my REPAYE can be processed. Also, Fedloan keeps telling me I have to pay my immediately yet when I called US Department of Education to ask a question about something unrelated, I was told specifically that its written in the statues that regardless of how much you owe, a student is guaranteed 6 months grace period. I told Fedloan several times and they recognized this and again stated an administrative forbearance is on my account.
It is clear to me that Fedloan Servicing has no plans to honor what is written in statues with the grace period after attending school. They also have been lying to me for the past 4 months stringing me along until I am backed into a corner where I have no choice but pay them instead of paying my rent or car payment which I need to get to work. They are loan sharks. It is also clear they have no intention on processing the REPAYE application that their representative selected and sold to me and even helped me fill out the application.
The representative acknowledged that I am entitled to the grace period because of my student status had me put {$0.00} for payment and {$5.00} maximum payment while the application was being processed.
The representative even apologized to me because my account had accrued {$10000.00} in interest because I could not afford payments since I was paying another private loan that could not be consolidated. She stated I was entitled to lower payments at that time including the period I was unemployed.
I suppose that 's was the whole point to begin with. Have representative promise things they never intended to follow through on and have you accrue addition interest so Fedloan gets more money out of borrowers. Now my credit report is ruined. Thanks Fedloan.

Company response to consumer: Closed with non-monetary relief