Consumer complaint received 2017-06-01
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: AES/PHEAA (PA)

Fedloan serving has continued to add money to my amount owed without explanation and make " mistakes '' in their favor that go unresolved. They have been deceptive and misleading in the way they have conducted business and the latest adding of {$4000.00} to my bill with no explanation has gone too far. My complaint date back to XX/XX/XXXX, when I submitted my PSLF form for XXXX XXXX XXXX XXXX and they only counted 7 months insisting the University filled it out improperly. That issue has gone unresolved. More importantly last XX/XX/XXXX or so I sent in my paperwork to recertify my IBR which I had done without incident several times. I was told on the phone that I should select all the options and I would be presented with the least cost option. Suddenly Fed Loan serving in their own self-interest added about {$50000.00} to my bill with no explanation. I was then told it was because their computer decided to switch me from IBR to REPAYE which capitalized the {$50000.00} and added it to my balance driving up the amount owned and my payments even though it was supposed to pick the option where I paid the least. I have gotten all kinds of explanations but in no way shape or form did I CHOOSE to add {$50000.00} to my bill and pay them more. I was told its better for me because I am working for the XXXX and it will be forgiven. I was told I would get an explanation and investigation but nothing ever came of that and working for the XXXX XXXX they took advantage of the fact I did not have the time and ability to fight them. I finally followed up with them after them made several more " mistakes '' in their favor this year the last coming a few weeks ago. I was called a liar and told I did not submit paperwork which I had records I did submit. I then proved I did and was told oh they made a mistake calling me a liar on the phone for over an hour. They brought up all the issues stated above and others. Again, I was told an investigation would happen but nothing. For 5 years my total due remained at about {$130000.00} because the interest was not capitalizing. Then It jumped to about {$180000.00} when they decided to change my plan and capitalize the money in their interest. That remained and it was a dispute but one based in a fair point I could understand that there was some explanation even though it was that they were deceptive and in a way tricked and defrauded me to get the {$50000.00}. Now suddenly my bill for no reason jumped to about {$190000.00} all while it says I paid down the principle and interest. This changed happened betweenXX/XX/XXXX and XX/XX/XXXX with no explanation. I called and spent 3 hours on the phone with several supervisors none of whom could explain this mystery {$4000.00} just added to my account. All they claimed they would do again is open up a dispute of amount and that would take several weeks all while the amount they just decided to add accumulates interest and I pay interest on it. Like before they will just wait until it is forgotten and add he {$4000.00} to my account. They are deceptive and completely dishonest. If I speak to one rep they say one story then the next says the opposite. One person told me it was a mistake they found in the accounting from XX/XX/XXXX when the interest capitalized for they just decided to add it on. I received no letter no documentation no explanation they just stuck {$4000.00} on my bill and had I not looked it would have stayed then they would have said too late just like they did with the {$50000.00}. The next person claimed they capitalized more interest but there was none because I pay almost {$1400.00} a month and its all been paid. Again these are just lies to get you off the phone because they feel nothing will happen as they just add amounts to the bill and it needs to stop. This is not to mention the money added to the other loan which increased as well. Loan one went from {$130000.00} to {$180000.00} to {$190000.00} an increase of {$50000.00} an increase of $ 36.45 % of the original balance with no explanation. Loan two went from {$30000.00} to {$33000.00} to {$33000.00} a total increase of {$2700.00} a 9.06 % increase with no explanation. All this while I pay {$1300.00} a month and the interest rate is 6.75 % and the statements says I paid {$14000.00} of the amount due, {$13000.00} in interest and XXXX in principle on the same statement the amount due went from increased about {$4000.00} on loan one and a few hundred dollars on loan two.