Consumer complaint received 2019-06-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (NY)

On XX/XX/2019, I received an email from FedLoan Servicing explaining that my loans have been transferred from XXXX to Fedloan, as I had applied for the PSLF program. The email provided login / account access instructions. I promptly created an account and signed in the view my loan details, etc.

That night, I made my standard monthly payment of {$350.00} as per my Income-Driven Repayment Plan ( IDR ) plan. Note, typically, my payment is due on XX/XX/XXXX, but I had not received any correspondence until XX/XX/XXXX on how to create / set-up payments during the transition period from XXXX  to Fedloan.

On XX/XX/XXXX, I received an electronic " account related letter '' via FedLoan informing me that my annual re-certification is coming soon. The note read " In about 2 months, look for another communication from us with easy instructions and a direct link to re-certify online ... '' Below that paragraph was a bullet that read : " If we do not receive your completed application and all supporting documentation within 10 days of XX/XX/2019, your monthly payment is estimated to be $ XXXX first due on XX/XX/2019.

First, this is conflicting information. Why would they tell me to be on the look-out for re-certification information in TWO MONTHS -- and then write that my application must be submitted within 10 days of XX/XX/19. Second, I know for a fact -- as per studentloans.gov -- that my annual re-certification is ALWAYS due on or around XX/XX/2019.

The real issue arose when I logged into FedLoan on XX/XX/XXXX and saw that my monthly payment due had jumped from {$350.00} to {$1000.00} ( without any explanation ). I immediately called FedLoan and was first told that my re-certification had expired. I then referred to the " account related letters '' dated XX/XX/XXXX in my FedLoan inbox and told them that 1 ). I hadn't received ANY further correspondence on my annual re-certification ( keep in mind, the letter said I would hear more information in TWO MONTHS ) and 2. ) the letter also states " within 10 days of XX/XX/XXXX '' -- at that point it was XX/XX/XXXX, so my IDR still should have been active.

At that point, the woman on the phone looked into my student loan information and saw that my re-certification was not due until late XXXX/XXXX. She then transferred me to an IDR specialist at FedLoan. This specialist advised that I proceed in paying my standard monthly payment ( {$350.00} ) for my XX/XX/XXXX due date -- and that they would put a " note '' on my account to " review '' / " investigate '' this issue.

On XX/XX/XXXX, I made my standard IDR payment as instructed and submitted a message via Fedloan 's " contact us '' section ( which is incredibly difficult to do because you constantly receive an error message upon hitting submit ) because I wanted all of this in writing and documented. On XX/XX/XXXX, I received a reply that read : " Your XX/XX/2019 bill was sent at a higher amount due to an error in transferring your Income-Driven Repayment Plan from your previous servicer. A request has been submitted to review your XX/XX/2019 bill to determine if you may pay the Income-Driven Repayment Plan amount and receive credit for Public Service Loan Forgiveness ( PSLF ). You will be contacted once the review is complete. You may also review the deferment and forbearance options for your XX/XX/2019 bill while this request is processing.

Your account is currently past due 2 days for {$1000.00}. We report the account status monthly to each nationwide consumer reporting agency.

We offer a variety of ways to postpone your payments. To view all available options please click on the following link : https : //myfedloan.org/borrowers/trouble-paying Please use the " Contact Us '' link through your online account at MyFedLoan.org to submit inquiries via a secure email form. You may also call us toll-free at XXXX to reach our Customer Service Department, which is open Monday through Friday, XXXX XXXX  - XXXX XXXX ( ET ). '' I should not be penalized for an error that was made from a loan provider -- regardless if it was FedLoan or XXXX. It is now XX/XX/XXXX and I have yet to receive an update on any of this.

Also on XX/XX/XXXX, I submitted my re certification application. Shortly thereafter, I received another " account related message '' stating the below : " We used your income documentation and family size to determine your monthly payment of {$350.00} which is first due on XX/XX/2019. Your new monthly payment amount is effective for all payments due between XX/XX/2019 and XX/XX/2019. You are still responsible for any payments due before XX/XX/2019. About 3 months prior to XX/XX/2019, we will send you notification letting you know that you are due to recertify ( complete a new application and provide updated income documentation ). If you do not recertify, any outstanding interest will likely be capitalized and your payment amount may increase. '' AGAIN, why is there conflicting information? Why is this " new '' amount effective for just THREE MONTHS and why will I be asked AGAIN to re-certify three months prior to XX/XX/2019?

Again, I haven't received an update on the status of my " review '' regarding the higher payment. When I logon to FedLoan, I receive an alert that reads : " As of XX/XX/2019, your account is now 14 days past due. If the delinquency continues you may lose your interest rate reduction which could result in higher payments. If you did not make a payment yet, you can choose to pay online right now. '' I will be mortified if this impacts my interest rate, credit score, and PSLF. I can only hope that documenting all of this will help my case, if it does indeed get to that point. There is no reason for the borrower to be punished for a lenders mistake and mishandling. This is incredibly disheartening and frustrating because I was with XX/XX/XXXX for 5+ years and had ZERO issues -- but of course, now that I applied for PSLF, my account is mismanaged, and I am at risk of being delinquent and missing payments for circumstances beyond my control.