About a month ago ( XX/XX/XXXX ) I was contacted by an agency that described themselves as a XXXX They explained that there are XXXX types of loaners ; " federal loan servicers '' and " servicers of federal loans. '' They claimed themselves as a " federal loan servicer '' while other companies were " servicers of federal loans. '' Essentially, that they were mandated and authorized by the federal government and in the public realm while the " servicers of federal loans '' were in the private realm and made money off of my loans. 

They said that due to legislation that had been on-going since XX/XX/XXXX under the Obama administration that now ( in XX/XX/XXXX ) a new law had been passed allowing debt forgiveness after XXXX years of payments. I asked how that was possible and they said it was something the federal government would eat to ensure all students could go to college without worrying about looming debt their entire life. Understanding that tens of thousands of dollars of debt was a lesser concern in the realm of national debt, I began to trust these people. 

They persisted and explained all of the benefits of switching to a " federal loan servicer '' rather than a " servicer of federal loans. '' For example, that I would n't have to make a payment for the first XXXX months dependent on eligibility. Each year, they would be required to update my living and working information and I could potentially never have to pay back a dime to my student loans. It sounded too good to be true, but I also understand that the amount of money I make annually is n't much - so it seemed to make sense as well. 

I agreed to begin the consolidation of my loan into their company ( which I understood as a " federal loan servicer '' while the company I was currently with as a " servicer of federal loans ''. ) I asked again the terms and were again told that for the first year or more, dependent on income, I would have no payments to make. It would allow a little more financial freedom, in my mind, and allow me to get on my feet and work toward a job making better money. I provided them the information they needed to consolidate and continued with the service. 

The holidays came and went and XX/XX/XXXX was upon me. I was again contacted by the XXXX. Now, they were explaining that I had a {$42.00} charge ( through direct deposit ) that I had to pay for the consolidation fee. 

Confused, I began to log in to the website that I believed had consolidated my loan and therefore would be where I 'd make the payment ( https : //myfedloan.org ). I encountered trouble answering the security questions and was locked out of my account. I waited the duration of the lockout and then attempted again, only to find that I could n't get into my account. 

I called XXXX. Through talking to the representative, I found that I owed them nothing for a year ( the promise that the XXXX elucidated ). Confused, I prompted that I had a charge for {$42.00} on my bank account from a " federal loan servicer ''. 

Quickly, it became clear : the company ( which I have now discovered is " XXXX '' [ https : //www.equitableacceptance.com/ ] ) had told me a half-truth. When they said I would n't have to pay anything, they meant on my loan, but I would have to pay them a fee of {$42.00} a month to consolidate and transfer my loan to a new company. 

They never tell you about the fee of {$42.00}. They never tell you that they 're a third party company that is offering their services of consolidation to a new federal loan servicer. They pose as the federal loan servicer. They set up a direct deposit on the {$42.00} which is what I am now complaining about. They pose the direct deposit as something they need for the future ( after a year of no payments ), but they use the information to file your application on a federal loan site and for themselves to collect.