Consumer complaint received 2016-04-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Trouble with how payments are handled
Company: AES/PHEAA (AL)

I was previously enrolled in the income-based repayment plan. My loans were deferred while I was in school last year. When my deferment ended earlier this year, my student loan servicer ( FedLoan Servicing ) automatically took me off the income-based plan and put me on the standard repayment plan, with a much higher payment. To try to reduce my payments, I submitted a new application for an income-driven repayment plan on XXXX/XXXX/16. FedLoan Servicing sent me an email on XXXX/XXXX/16 confirming receipt of my application. However, they proceeded to automatically withdraw the payment amount calculated based on the standard repayment plan on XXXX/XXXX/16. I called and was told that they could not give me a forbearance or provide a refund for my payment. I called to follow up on my application on XXXX/XXXX/16 and it was still being processed and I was told they could not tell me when it would be completed. I was also told that they could not give me a forbearance for my next payment at that time but that it would be " taken care of '' later when the application was processed. I asked them to make sure they did not automatically withdraw my next payment. My next payment ( calculated based on the standard repayment plan, which I never signed up for ) came due and fortunately my account was not automatically debited. However, my account status continues to be listed as delinquent and my application has not been processed. I received an email from FedLoan Servicing on XXXX/XXXX/16 saying that they had processed my application and sent me a message. However, I checked my account on XXXX/XXXX/16 and the amount was still showing the same standard repayment amount, my status was still listed as delinquent, and I had not received a message regarding my income driven repayment application. Further, I noticed that they had my account scheduled for auto-debit again this coming month. I called on XXXX/XXXX/16 and spoke with a representative who stated that my application had not been processed and I needed to make a payment in the amount equal to the full standard repayment plan amount in order for my application to be processed. I knew this was not true because my husband has a different loan servicer and he had submitted an income-driven repayment application at the same time I did and his application was processed in XXXX weeks and he only had to pay a {$5.00} forbearance charge for the application to be processed. I told this to the representative and he admitted that they could just do a {$5.00} forbearance charge. I requested in my application that they place me on the least expensive payment plan. The representative told me that the least expensive option would be income-based plan. I asked the representative about a pay as you earn plan, since the payment amount should be less, but the representative said that I was not eligible since some of my loans were too old. However, the revised pay as you earn plan does n't factor the date the loans were taken out into determining eligibility. The regular pay as you earn plan does, but the revised pay as you earn plan does not. My application is still pending and my account is now showing that I owe twice the standard repayment plan amount ( for XXXX and XXXX ). I am very frustrated that my application still has not been processed yet, that I have been given incorrect information by FedLoan Servicing about my loan eligibility and options. I am also frustrated that FedLoan Servicing automatically withdrew a payment on XXXX/XXXX/16 based on the standard repayment plan and they are telling me that I can not receive a retroactive forbearance and refund for that payment ( even though I have received a retroactive forbearance and refund before ).