Consumer complaint received 2017-09-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (CA)

I have been struggling with my loan servicer, FedLoan Servicing, for several months. My loans were transferred over to FedLoan Servicing from another company after I submitted employment verification documentation to the XXXX XXXX XXXX XXXX program. I understand that all PSLF-eligible loans are required to be transferred to XXXX, and that I do n't have a choice in this matter. 

I am also eligible for XXXX XXXX XXXX, and have been on XXXX for several years. This XXXX, it was time for my annual income recertification, and I learned that I would be eligible for more affordable monthly payments via REPAYE. On my recertification form, I selected the box to be put on the plan with the lowest monthly payment. I submitted my form on XXXX XXXX, XXXX. 

FedLoan Servicing sent me a notification on XXXX XXXX that my IDR recertification was being put on hold. I paid my same rate for XXXX XXXX the rate based on my XXXX recertification ). At noon on XXXX XXXX, XXXX, I received a text message from XXXX that I needed to recertify by XXXX XXXX, XXXX, in order to remain on an income-driven plan. I immediately called XXXX. The person I spoke with let me know that there had been a delay on their end, they verified that my paperwork was there, and that I should expect that in XXXX, my payment would be set at {$5.00} due on the XXXX of the month XXXX my normal date is the XXXX ), and that my new payment rate would be set following the {$5.00} XXXX XXXX payment. The person let me know that I might see some notifications that I 'd be scheduled for a {$450.00} payment or something larger but that I can ignore those messages, as those are sent automatically and my IDR recertification review would override. 

At XXXX PM on XXXX XXXX, XXXX, I received an email from XXXX letting me know that my normal {$450.00} would be due on XXXX XXXX. As the representative had let me know earlier that day that I do n't need to worry about this, and that I would soon see an XXXX XXXX payment of {$5.00}, I held off on getting back on the phone for a few days. 

After 10 days, it was XXXX XXXX, the day before I 'd been told my {$5.00} payment would be due. My account still listed the {$450.00} as being due XXXX XXXX. No information about a {$5.00} payment. I called XXXX to inquire about my payment schedule. I was told that the XXXX XXXX payment was real and that I would be expected to pay it as scheduled - counter to the information I had been given on the XXXX. I was told that I would not be asked for a {$5.00} payment until XXXX, and that my new XXXX rate would be available after that. 

On XXXX XXXX, I received a notification that I was being placed on forbearance as part of the recertification process. The forbearance would begin XXXX and end XXXX, and I would be asked to pay {$5.00}. This notification included a message stating that " If you are enrolled in XXXX XXXX, your payments will be automatically withdrawn from your bank account on your next due date '' but this did not happen. 

I have always made automatic direct debit payments from my checking account. At no point did anyone inform me that this payment would not be subject to direct debit. In fact, the notification led me to beleive that this payment would be subject to direct debit. I got home from work at XXXX PM on XXXX XXXX, and logged in to XXXX to check that the payment had gone through. It had not, to my shock, and was listed as and was past due. I immediately submitted a manual payment, but because it was after midnight on the east coast, I was not able to schedule it for the current day and was forced to schedule it for XXXX XXXX. 

On XXXX XXXX, my XXXX account showed a payment due XXXX XXXX of {$1100.00}. I called XXXX on the morning of XXXX XXXX. The representative let me know that this was displaying while the system processes my {$5.00} payment and my recertification application. I was told that I would not be liable for the {$1100.00} payment and that the payment would be deactivated within XXXX hours. 

The payment was not deactivated within XXXX hours, so I called back on the morning of XXXX XXXX. The representative I spoke with apologized that the prior person had given me erroneous information about the deactivation. I was told that the {$1100.00} was an error and to expect that it would be XXXX business days before my correct payment amount would be shown in the system. I asked for confirmation of this in writing and was told that it would take XXXX business days to send such confirmation. I was told to expect a message through the system by Tuesday, XXXX. 

This never happened. On Thursday, XXXX, I called back. I told the representative what I had been told previously. They let me know that this was erroneous information : the process to get my new payment amount would actually be taking XXXX business days, starting from XXXX. It is important to note that this means that they did not start processing my new rate until the second time I called to ask why I was being told I owed {$1100.00}. I was informed that the {$1100.00} would not be deactivated until the new rate was put into place. However, this payment is due XXXX XXXX, and XXXX business days from XXXX is a timeline that stretches beyond my due date for this payment - the earliest I can expect to get my new rate is XXXX XXXX. I asked the representative if they understood that this was a problem and if they said yes. However, they informed me, there was no way to deactivate the payment, and no way that I would get a revised rate before the {$1100.00} is due. They advised me to not pay, to let the payment go delinquent, and to apply for retroactive forbearance after my new rate comes in. I asked for written confirmation that I would not be liable for the {$1100.00} payment and was told that there was no possible way to get anything in writing. I asked the representative if they understood why I wanted some documentation about this, and they said yes. 

At this point, I have called XXXX XXXX times. Each time, I have been given conflicting information. Each time, the representative has apologized for the misinformation I received on my prior call. Several times, the system only activated the next steps in my recertification process after I called to alert them about the problems. It is almost XXXX and I still do n't have my new rate. I 've got a payment due in less than XXXX weeks for an amount I can not afford. I 've been verbally advised by the company to not make the payment, but given the inconsistency in their guidance to date, and the fact that I have no written communications from XXXX confirming that I do not have to pay the {$1100.00}, I am very worried about what will happen from here. 

I do not know what my rights are. I do not know what my responsibilities are. I can not afford this payment. XXXX has my income information and knows that I can not afford this payment. I do not understand what my options are, and I do not trust this company to give me reliable information about what to do.