Consumer complaint received 2016-09-13
Company: AES/PHEAA
State: WV
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
I have XXXX direct unsubsidized student loans with a current outstanding balance of approximately XXXX. In XXXX, XXXX, I began work at the XXXX in XXXX, West Virginia - a non-profit organization. Because of my continuous work with a non-profit organization, I submitted paperwork in XXXX, XXXX to ultimately have loans forgiven after 10 years of continuous service with the non-profit and 10 years of consecutive payments. My servicer at the time I submitted the paperwork was XXXX XXXX. My XXXX XXXX ID was XXXX. 

On XXXX XXXX, XXXX, I received an email from XXXX XXXX informing me that my loan would thereafter be serviced by FedLoan. Specifically, that email stated as follows : " Important Notice : Transfer of Your Loan Account Dear XXXX, The U.S. Department of Education ( ED ) will soon transfer the customer service of your federal student loan account to FedLoan Servicing ( PHEAA ), another member of ED 's federal loan servicer team. Your loans are not being sold. ED will continue to own your loans ; however, a different servicer will manage your loans and assist you on ED 's behalf. 
ED is transferring your loan account to FedLoan Servicing ( PHEAA ) because you requested to participate in the Public Service Loan Forgiveness ( PSLF ) Program. FedLoan Servicing ( PHEAA ) is ED 's servicer that provides customer servicer for all federal student loan borrowers who are potentially eligible for PSLF and tracks their progress toward qualifying for PSLF. This change in servicer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans. 
Your loan account will be transferred to FedLoan Servicing ( PHEAA ) on or about XXXX/XXXX/XXXX. If ED does n't transfer your account as planned, we 'll let you know. '' Please note the language stating that the transfer would not impact the existing " terms, conditions, interest rate, or available repayment plans ... '' For the entire eight year period I have been paying approximately {$190.00} per month on my loans. 

Once the loan was transferred to FedLoan, I received a bill for {$320.00}. ( My FedLoan account number is XXXX ). That is an increase of {$130.00} per month. At least in my mind, a monthly increase of {$130.00} is a substantial change in the terms and conditions of my loan. I contacted FedLoan twice and all they would tell me was that my loan had been " recalculated. '' I could never get past the first person who answered the phone. 

The last few months, I have continued to make my regular payment of {$190.00} as I have made for the past eight years. Now, unfortunately, FedLoan shows me as delinquent because I have n't been paying the higher amount. This can obviously have a severe negative impact on my credit score. 

I am not trying to avoid payment. What I want is for the payments I have been making for nearly a decade to remain the payments I continue to make - i.e. {$190.00}

Company response to consumer: Closed with explanation