Consumer complaint received 2022-10-27
Company: AES/PHEAA
State: NE
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
In XXXX my XXXX and I made the decision to consolidate our federal student loans in hopes of simplifying our payback arrangements. This resulted in a private loan with XXXX, serviced by AES  which originated on XX/XX/XXXX with a balance {$42000.00} with a variable rate at the time based upon the XXXX. 
Since origination, almost exactly XXXX ago, the following are the loan facts to date : ( XX/XX/XXXX ) : Current Interest Rate : XXXX XXXX ( Standard Variable ) Payments made to date ( according to the banks payment history ) : XXXX Average Monthly Payment {$300.00} Late Payments Since Origination : XXXX Late Fees Paid Since Origination : {$75.00} Principal Paid to Date : {$9700.00} Interest Paid to Date : {$40000.00} Total Paid to Date : {$50000.00} Expected Payoff Date : XXXX/XXXX/XXXX My complaint should be self evident based upon the numbers above. 

While the ( to date ) loan details state that our term is " XXXX XXXX '' we have satisfied XXXX payments to date and have only paid less than {$10000.00} to the principal. 
The loan details also state the " Expected Payoff Date '' to be XXXX/XXXX/XXXX? Why when I have made XXXX payments to date - this should show remaining payments of XXXX - Not a brand new repayment term of XXXX XXXX 

What I have noticed is that every time the rate changes- the Loan starts over. This is fraudulent in my eyes. I have made XXXX payments out of a Total XXXX payments. 

Also- One should note that my XXXX and I filed for XXXX  XXXX Bankruptcy in XXXX, XXXX in XXXX of XXXX. 
The bankruptcy was a result in part to past medical debt and my wife losing her business due to unforeseen circumstances. 
Due to the bankruptcy pending on our credit report, we are not able to refinance the student loan. 

However- with making XXXX payments out of XXXX payments - I don't believe I need to be trying to get a student loan to pay off the balance - as we have paid more than what was originally owed to AES- As shown above, in the past XXXX XXXX we have been late paying this student loan ONCE. 

It should also be noted that the terms of this loan states that payments will be made to the interest first until the interest is paid off then to the principal. 

We have been making payments higher than the minimum due - at least by $ XXXX so that we can get the interest paid off. We have paid off the interest and find that the next month the interest goes up and we are in a {$200.00} deficit in interest. 

This loan is set up for the bank to win and for us to fail - never in the life time of my life will I have this loan paid off by the likes of the suspicious and fraudulent like activity of the loan- in all retrospect - AES/XXXX  XXXX have set us up for a lifetime of debt - a debt that will pass on to our children- as we can not get ahead of it due to the raising of the interest and the renewing of our loan every month. 

One more fact - This student Loan is more than I make in salary on a yearly  basis- I have been paying on this loan for XXXX XXXX - And still owe more than I make a year. 

I have attached the loan transactions to date document that was downloaded from the AES website. 
I have also attached the details of the loan as printed from their website in XX/XX/XXXX and most recent XX/XX/XXXX.

Company response to consumer: Closed with explanation