Consumer complaint received 2016-04-17
Company: HIGHER EDUCATION STUDENT ASSISTANCE AUTHORITY (HESAA)
State: NJ
Product: Debt collection
Sub-product: Non-federal student loan
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
I would like to report the abuse and consumer harassment committed by XXXX HESAA ( XXXX Higher Education Student Assistance Authority ). I, and probably many others students like me, am a victim of the tyranny of this institution. I 'll try to be as brief as possible but I can submit proof of the abuse committed against me by HESAA. 
XXXX HESAA granted me a student loan in the amount {$20000.00} in XX/XX/XXXX. I left school due to financial and personal difficulties in XX/XX/XXXX. I went back to school XX/XX/XXXX and received a letter from HESAA with a new payment plan starting XX/XX/XXXX. I had to put my studies on hold again due to no transportation from home, school, and work. I was able to return XX/XX/XXXX and XXXX continuously sent me their invoices due while I was still a full-time student. XX/XX/XXXX my loan went into default ( I was still a full-time student at this time ). In XXXX XXXX I received a letter from HESAA 's XXXX based lawyers, XXXX XXXX XXXX XXXX. They took me to court ( Docket # XXXX ) for the amount {$23000.00} plus accruing interest. My case was selected for a mandatory non-binding arbitration. 
Although the stamped mediation invitation letter was dated XXXX XXXX XXXX. HESAA ruthlessly sent me a Plaintiff 's Arbitration Statement requesting, once again, payment exceeding the {$23000.00}. 
The mediator dismissed the case without prejudice on the ground that I was in school when the loan was entered into default and for the amount of {$23000.00} only. Outside the mediation we verbally agreed to go to court, instead, HESAA decided to reinstate and re-capitalize the debt for a whopping amount of $ XXXX.We sent a letter and called HESAA asking why the decision of hiking up the price was made when in court it was not only dismissed but told to return to the amount of {$23000.00}. Not only that, but HESAA never took the default off of my credit which tremendously affected my financial situation. 
I returned to my studies XX/XX/XXXX to XX/XX/XXXX. During this time HESAA received the notification that I was enrolled as a XXXX XXXX XXXX. However they continued to send me statements not only with the wrong amount but also ignoring the signed agreement between HESSA and myself ( option 3 ), which I am not to pay while enrolled in school. HESAA is defaming my character stating I am liar regarding my previous enrollment in school and sent this back to the court with a new docket number. At this time the new amount they were demanding was {$38000.00}. My case was again selected for a mandatory non-binding mediation, To my surprise I was shocked when I received a judgement on XXXX XXXX for the full amount of {$38000.00}. Not even giving me a chance to once again prove my case. I am no lawyer, this whole time I was acting pro se but I strongly believe that HESAA and their XXXX lawyers took complete advantage of my situation. The case should 've been resolved at the first mediation because I even proposed a payment plan based on my income and for the judge to decide. Instead I have to pay an additional {$15000.00} for the unjust treatment brought upon me from HESAA. I can provide more information regarding the abuse ( over XXXX pages ). There 's even an affidavit signed by the attorney that I defaulted the loan based on an erroneous administrative mistake. They were asking me to pay interest ( option 2 ) when I signed for option 3. I am currently receiving letter of debt collection from HESAA lawyers.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief