Consumer complaint received 2019-07-18
Company: AES/PHEAA
State: SC
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
Aside from receiving different and erroneous information during every call with their customer service, I received a written interest capitalization notice on XX/XX/2019, specifically notifying me I needed to pay {$3600.00} of interest within 21 days of the notice ( XX/XX/2019 ) or this amount would be capitalized ( added to my principal balance ) on XX/XX/2019. I immediately called FedLoan Servicing and asked why this was even happening as they set my payments based on an income contingent repayment plan as part of PSLF program. No one could answer my question other than this was how much outstanding interest was on my account. I was never warned this could or would happen. But, I digress. 
I bit the bullet and paid the full amount on XX/XX/2019. There was no way I was going to let them capitalize an amount larger than what I had paid off over the last 2 years! The payment posted to my account on XX/XX/2019. However, XX/XX/2019, {$260.00} of interest was capitalized. I saw this shortly thereafter when checking my online balance and called immediately. First person I spoke to didn't understand anything so I was forwarded to a " supervisor. '' My question was simple. Why did ANY interest get capitalized if I paid the EXACT amount that was stated on the notice and well in advance of the due date? After much back and forth, she agreed with me that it was an error and said that the capitalization would be reversed. 
Fast forward to today ( XX/XX/2019 ), I was reviewing my online account again and noticed the interest capitalization was never reversed. In fact, since XXXX it has been considered part of my principal balance and has accrued additional interest! I called again ( this is not to mention multiple other calls to them in the interim about other issues - in which every time I got a different answer and most often the incorrect answer ). After a 30 minute call, the young lady told me she would request a review of my issue. Request a review? I have already been told the {$260.00} interest capitalization would be reversed and now I need all erroneous interest charges on that {$260.00} to be reversed too. She said she could just submit it for review and " I could call back and follow up. '' What kind of service is this?! It's a scam! First, they most likely thought I wouldn't catch the capitalization. Second, after telling me it would be reversed on a RECORDED phone call, it was not. Rather, it's compounded additional interest on my account. And now, I need to follow up in the next 7-20 business days to see what happens??? I have a FULL TIME job and can't afford to be calling and waiting on hold for some incompetent person to tell me something incorrect. And this is not the first or only issue I've had with these people. I don't have time to elaborate on all the other horrible practices in which they engage. The whole company is a scam and needs to be investigated or simply shut down.

Company response to consumer: Closed with explanation