Consumer complaint received 2019-01-13
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (CA)

XX/XX/XXXX American Education Services misled me about my student loan, pitching me more deeply in debt, and raising false hopes about a lower monthly payment. Located in XXXX Pennsylvania, the company promised me a years forgiveness on my loan in XX/XX/XXXX, falsely claiming my monthly bill would drop to {$150.00} from {$270.00}. On XX/XX/XXXX AES completely reversed their position, stating that they had never offered me a lower payment plan and that my monthly bill would remain {$270.00}. The companys complete denial of their previous position is confusing and underhanded to say the least. 
Apparently student loans big business and a cash cow for lending companies. 
A senior citizen and XXXX survivor, I had approached the company in XX/XX/XXXX about options for reducing my student loan. At that time they did not offer me any alternatives other than a pay off. Complicating the issue is the fact that my credit card debt increased sharply in XXXX due to an extended hospital stay not covered by my provider XXXX XXXX. 
In XXXX I voluntarily increased my monthly payment from {$170.00} to {$270.00} in order to make greater progress in reducing my balance. 
On XX/XX/XXXX XXXX, from AES, ID number XXXX, stated that my loan was currently in payday status and that my regular monthly payment of {$270.00}, due on the XX/XX/XXXX, would not be due again until XX/XX/XXXX. XXXX explained that the break in payments was due to the fact that I had paid ahead on my loan. She said that my loan would not accrue interest throughout the year, adding that in XXXX XXXX my monthly payment would drop to {$150.00} because I had paid ahead. She did not state that my payment would again revert to {$270.00} in XX/XX/XXXX. If I had known this, I would have continued to make my usual payment of {$270.00} throughout XXXX, and I would not be writing this letter now. 
In XX/XX/XXXX my unpaid balance totaled {$25000.00}. As of XX/XX/XXXX my current unpaid balance is {$25000.00}. According to the XX/XX/XXXX statement I have paid {$23000.00}, with an original loan balance of {$37000.00}. 
In XX/XX/XXXX I made a payment of {$150.00} as discussed by XXXX in XXXX. In XXXX I was floored when I received a monthly bill for {$270.00}. 
In XX/XX/XXXX, I had called AES to confirm XXXX statement that my bill was not accruing interest. XXXX, ID number XXXX contradicted XXXX by saying that my loan was in fact accruing interest. On XXXX XXXX, XXXX, XXXX, ID number XXXX, also stated that my interest had been accruing regardless. I reviewed the reduced bill with both XXXX and XXXX. They did not inform me that the bill would again revert to {$270.00} in XXXX. 
On XX/XX/XXXX, XXXX, ID number XXXX, said that after thoroughly reviewing my account my monthly payment remains at {$270.00}. XXXX said she had no knowledge that my payment had dropped to {$150.00}. 
If AES had never stated in XX/XX/XXXX that my bill would drop to {$150.00} I would not be writing this letter. It would have been better if my loan had never been put on payday status in XXXX and I had continued to make my regular monthly payment of {$270.00} throughout XXXX. My loan balance would have dropped and I wouldnt have harbored false hopes about a lower payment and greater financial security. 
I am retired, a XXXX XXXX, live on a reduced income, and my health is questionable. AES deceptive business tactics have created financial havoc in my life. Interesting to note that the company never sent me anything in writing to corroborate XXXX statements about the reduced payments, other than the monthly statements showing a zero payment due. 
In XXXX I had applied for government financial aid in order to obtain a teaching credential from XXXX University in XXXX XXXX. In XXXX I again applied for financial aid to obtain a XXXX XXXX in XXXX from XXXX XXXX University in XXXX. I worked from XXXX to XXXX in XXXX XXXX schools, a low income area. In XXXX I applied for a student loan consolidation after being approached by sales people on the campus where I was employed. In XX/XX/XXXX my government loans were assumed by XXXX XXXX/XXXX  XXXX. In XX/XX/XXXX the loan was assumed by AES without my consent. Unfortunately I do not currently qualify for a XXXX XXXX XXXX program through AES since I no longer XXXX  full time for a XXXX XXXX XXXX. 
At this time I hope that AES makes good on its promise to lower my payment. Appalling that I have made steady payments on this loan for well over a decade, and I am now faced with mounting debt. In my lifetime I have paid off at least three cars in five years time without any issues. Its likely that my student loan will outlive me. 
This letter signals that change is sorely needed in the student loan industry. College students should be informed at the outset that loans absorbed from private lenders are pricey, dicey, and often do not qualify for forgiveness. I hope that legislation will be enacted so that future generations of college students do not have to deal with shady lenders in their retirement years. 

Sincerely, XXXX XXXX cc : XXXX XXXX, California Congresswoman District XXXX ; Consumer Financial Protection Bureau,