Consumer complaint received 2023-08-06
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Problem lowering your monthly payments
Company: AES/PHEAA (IL)

I graduated from grad school on XX/XX/XXXXXXXX  and have been underemployed since then. I knew that my private student loan payments would resume immediately following graduation. I called American Education Services ( AES ) customer service on or around XX/XX/XXXXXXXX  to ask what payment options are available to me since I am experiencing financial hardship. The customer service representative I spoke with suggested applying for Loan Modification ( LM ) and they told me about the details of the program. The details that I was told are also on the first page of the LM application ( see attachment ). I received the LM application on Friday, XX/XX/XXXX. I completed and submitted the LM application on XX/XX/XXXXXXXX  via the online file upload tool on the AES website. As part of this LM application, I only included my ( the borrowers ) financial information, and not the co-signers financial information. I did not include the co-signer in this LM application because the co-signers income does not determine my ( the borrowers ) ability to make loan payments. 

After not hearing back from AES about the LM application I submitted on XX/XX/XXXX, I called AES customer service on Wednesday, XX/XX/XXXX. When I called, I was told that my LM application was delayed because I did not include the co-signer. AES was unable to provide a detailed explanation for this delay, but assured me that the LM application delay was due to not including the co-signer on my application. I explained that the reason I am even applying for the loan modification is because I am currently experiencing financial hardship due to unemployment following graduation. I also said that the co-signer and their income does not determine my ability to make loan payments. The customer service representative told me that my financial situation is not the only determining factor for loan modification. I said that is really interesting that my financial situation is not a determining factor since the LM application only asks for financial information. I then asked if I could submit another LM application with the co-signer. AES said yes, and they sent me a new LM application since the application requires that it be completed within 30 days of receipt ( see attachment ). I received the second LM application on XX/XX/XXXXXXXX  ( the letter is dated XX/XX/XXXX, see attachment ). I completed the second LM application and submitted it, with the co-signers information, on XX/XX/XXXX. 

On Friday, XX/XX/XXXX at XXXX XXXX, I received a response from AES regarding my second LM application. This was the response : Unfortunately, we are unable to grant your request for the loans referenced in this letter due to the following reasons : The financial requirement ( net income less expenses ) for this program was not met by the borrower. However, if your income changes and you believe you may qualify for this program, the borrower can apply again at that time by contacting American Education Services ( AES ) for a new application ( see attachment ). On Monday, XX/XX/XXXX, I called AES customer service to ask about the specifics of this decision. I asked what is the financial requirement for the LM program? AES said that they were not sure what the financial requirements are since they dont set them. I thought this was odd since the LM application says that, AES will review your application and provide notification of whether your request was approved, denied or if additional information is needed to evaluate your application ( see attachment ). AES assured me that I must have some income in order to qualify. I said I do have some income, but this source of income is temporary and does not cover the expenses I listed in the application. I asked if there is a contact at XXXX that I could contact to ask about the financial requirements of the LM program. AES said they were not sure and did not have contact information to give me. AES suggested that I resubmit the LM application but leave the box in section A of the application unchecked ( see attachment ). I said that I will do that. On XX/XX/XXXX, I made the suggested edits to the second LM application, which was dated XX/XX/XXXX. I submitted the LM application a third time on XX/XX/XXXX. 

On Friday, XX/XX/XXXX at XXXX XXXX, I received the following response to my third LM application : Unfortunately, we are unable to grant your request for the loans referenced in this letter due to the following reasons : The XXXX Loan Modification Application that was mailed to you on XX/XX/XXXX, has expired. A denial letter was mailed to you on XX/XX/XXXX. If you wish to reapply for XXXX loan modification, the borrower will need to request that a new application be mailed. Nowhere on the LM application does it say that the application expires, it only says complete and return this package no later than 30 days from the date of the letter. The letter being referenced here is dated XX/XX/XXXX. 

This situation has been dragged out for months due to AES hiding information I need in order to receive support and AES sending me responses to my LM applications late on Friday nights. This is all happening while AES is aware that I am struggling to make my monthly loan payments. I reasonably expected that AES would correctly advise me on how to navigate the LM application process, since all of the documentation I received since XX/XX/XXXX encourages me to call AES if I have any questions ( see attachment ). However, after months of this I no longer believe AES is accurately advising me on this process. It feels as if AES is intentionally preventing me from understanding and thus participating in the LM program because AES stands to lose money. My monthly loan bill has steadily been increasing since XXXX -- in XX/XX/XXXX, my bill was {$320.00} ; in XX/XX/XXXX, my bill was {$320.00} ; and the bill for XX/XX/XXXX is {$330.00} and is due on XX/XX/XXXX. I feel that AES is taking advantage of the fact that I am underemployed and that I must rely on them for information. I feel that I am being coerced into becoming delinquent on my loans, which is not in my best interest. Since XXXX, AES has serviced my private student loans. Since XXXX I have not made a late payment and have paid the full amount required. Under subpart B of the Fair Debt Collection Practices Act ( FDCPA ) and section 1031 ( d ) of the Dodd-Frank Act, I believe that AES is being deceptive in its communications with me.