Consumer complaint received 2019-03-24
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: AES/PHEAA (NC)

The PHEA is committing unfair practices. I have been on an IDR plan for 5 years. I never had issues while under XXXX. After applying for the PSLF program, my loans were transferred to PHEA and the unfair practices began which are unfairly and adversely effecting me. The issues arose during the XXXX re certification process. On XX/XX/XXXX, PHEA asked me to send in documents and the re certification application for my IDR plan. They told me to submit said documentation by XX/XX/XXXX. I sent in the application, my last paystub from my full-time job, and a self certifying letter for my part time work as an XXXX XXXX. These are the same exact documents I had sent in last year and that I sent XXXX every year prior. On XXXX XXXX, PHEA sent me an email stating that my IDR re-certification was denied. It stated that I had missing documentation in regards to my pay. I immediately called PHEA to see what I needed to do and what information they alleged was missing. I was told that my self certifying letter did not state who I am an XXXX XXXX for. I explained that I never included this information in years prior and that it had never been a problem. Firstly, an XXXX XXXX means that I XXXX XXXX XXXX, not for a company. Nonetheless, I obliged and sent in an updated self certifying letter detailing which company XXXX my services. I did so in a timely manner as specified in the letter. In the meantime, PHEA informed me that I would be required to pay the standard amount, which I could not afford. I spoke with several representatives and supervisors. I was told to wait for the recalculation to go through and that I could submit an appeal of sorts that would allow for me to pay the updated amount in lieu of the standard amount. On XX/XX/XXXX, which was 15 days before the standard payment would be due, my updated IDR payment was approved. I was delighted as this gave me time to get the appeal in to pay the updated amount on XX/XX/XXXX in lieu of the almost {$1000.00} payment that was scheduled. My delighted state of mind soon ceased to exist. I looked at the updated amount and it was listed as {$0.00}. I could have just ignored it and accepted the {$0.00} payment, but being an honest consumer, I immediately called PHEA. I told them that they must have made a mistake. I assumed that whoever recalculated it must have omitted my paystub from my full-time job and recalculated solely based on my part-time contracting work. The PHEA representative immediately said that I was correct. He stated that I had indeed sent in the full-time pay stub but somehow PHEA only used my part time pay when recalculating. I explained the dire situation I was in because now I could not request the new amount to be applied to my XX/XX/XXXX payment. He informed me that he would make sure I was not punished as this was PHEA 's fault and no fault of my own. He told me that he submitted the appeals request anyways and that I should check back on it. He told me in the meantime, he was suspending my direct debit payment for the month of XXXX to ensure that the almost {$1000.00} was not billed. By XX/XX/XXXX, I still had not heard back from PHEA in regards to that appeal. I called once again. I spoke with a different supervisor. She told me that the appeal process can take up to 6 weeks and that I would receive a call, not an email. It has since been 6 weeks and I have yet to receive a call. My account is now listed as delinquent. I have a 800+ credit score. I am never delinquent on my accounts. This is adversely effecting my credit through no fault of my own. PHEA did not update my new IDR payment amount until XXXX XXXX. The IDR process from first submission of documents to finally going through correctly took 5 months. This is unacceptable. To my horror, I saw that PHEA also capitalized my interest since my IDR application was denied. That is {$16000.00} that was capitalized. Why was it capitalized? All because my self certifying letter which stated that I XXXX XXXX XXXX was not to PHEA 's liking. Did they call me or simply ask me to add what companies I contract for? No! They instead denied my application altogether so that they could capitalize {$16000.00} onto my loans. One word omission on my letter cost me {$16000.00}. That is an unfair practice which disproportionately and unfairly punishes a borrower who has never missed a payment since being on IDR. This problem would have never happened if I was still with XXXX. In addition, PHEA through the complete fault of their own incorrectly calculated my payment amount thereby causing me to lose months of qualifying payments on my PSLF program. What do I get for being an honest consumer and telling them that they must have messed up my recalculation? Nothing. I get no help on my delinquent payment status and I get interest capitalized to the tune of {$16000.00}. I am reaching out to the Consumer Financial Protection Bureau at this point. I have spoken with PHEA over 15 times as a result of their own errors and they have done nothing but punish me. I am asking for PHEA to do the fair and just thing which is two fold : 1 ) Undo the {$16000.00} interest capitalization wherein you used a loophole of not submitting documentation in a timely manner. This is untrue in my case. I submitted it in time but you did not like my self certifying letter which was acceptable under XXXX and PHEA last year. A subjective decision by a PHEA employee does not constitute not sending documentation on time. It was on time and was sufficient to put you on notice as to my income. 

2 ) Adjust and report to the credit agencies that my XX/XX/XXXX payment is not delinquent. Again, but for a PHEA subjectively denying my application altogether because he/she did not like my objectively reasonable self certifying letter, my application would have been approved. Additionally, but for PHEA miscalculating my IDR payment through no fault of my own, my payment amount would have been approved months ago. 

Please do not punish a consumer who submitted in a timely manner, corrected your mistakes within a timely manner, and has displayed nothing but honesty with PHEA. This deserves to be rewarded not punished to the tune of {$16000.00} and a hit on my 800+ credit score. Please help this nightmare come to an end and fix your companies errors which are effecting me unfairly. Thank you. I look forward to this situation being remedied immediately.