Consumer complaint received 2021-04-29
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: AES/PHEAA (AL)

In XX/XX/XXXX, I applied for a mortgage and used my XX/XX/XXXX IBR statement from FedLoan Servicing ( FLS ). As an XXXX XXXX I find it advantageous to purchase a home rather than rent XXXX rental - {$1400.00} with rental companies continuously tacking on extra fees ; mortgage - $ 975 monthly payment ). Unfortunately, I did not find a replacement house to purchase until XX/XX/XXXX. I had used my IBR statement from FLS dated XX/XX/XXXX ( see attached ) that documented my monthly payments as {$0.00} and was preapproved for a mortgage ; however, the loan goes into underwriter and was delayed because two of the loans on the IBR statement showed a N/A in the monthly payment terms column, so the underwriter could not go forward until I get an updated letter XXXX note I have been on IBR since XXXX and have a XXXX credit score ). I contacted FLS immediately on XX/XX/XXXX and encountered a phone tech who was obviously hung over and rude who hung up on me. I called back and received a pleasant phone tech who I relayed that I needed an updated IBR letter because the one I had is dated XX/XX/XXXX and the two loans with N/A should be showing {$0.00} as the others. 

In the meantime the mortgage loan consultant is emailing me that if I do not show the two loans as {$0.00} even though the XXXX XXXX clearly states I am on IBR that he would have to use the 1 % formula of the balance of the two loans that are in forbearance due to COVID-19 that will increase the XXXX. I will most definitely lose the house due to this action. I kept calling FLS for a status and even did a chat with customer service and was assured that the request was being processed. On Wednesday, XX/XX/XXXX, I received an email from FLS that stated Summary and could not believe what I had just received ( see attached ). All needed to be done was to update the two loans in the XX/XX/XXXX letter. This summary did not resemble the XX/XX/XXXX letter because everything was wiped out -- every single loan on the document and the terms showed N/A with a lot of gobbledygook below about the loan terms. I was horrified and called FLS again and they advised me that the Summary would be corrected. I stated to the tech that the Mortgage Letter in the FLS Dashboard document all the loans as {$0.00}, but does not mention anything about IBR, etc., so the mortgage companies render it useless. The IBR certification letter is the only acceptable documentation. 

I was told that I did not need to complete another recertification due to COVID-19 because the deadline had been extended, but I submitted a recertification on XX/XX/XXXX thinking this was the problem. However, I received an email this XXXX XX/XX/XXXX that the request was incomplete because I did not submit income documentation -- not true. I immediately scanned both the application and supporting documents together and resubmitted. 

A consumer/student should not have to go through this trauma from FLS ' incompetence or vindictiveness -- not sure which one. The rules are so conflicting and goes against the struggling student.