Consumer complaint received 2017-01-10
Product: Student loan — Non-federal student loan
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: AES/PHEAA (GA)

The student loan system, both federal and private, is beyond complicated for an XXXX year old to understand. I, like many other Americans, took out both federal and private student loans to cover XXXX degrees I received. I was advised to do so by the financial aid departments in all XXXX of the Universities I attended. Now, as an adult of XXXX, I can see that what they advised was both wrong and criminal. They tricked a young, dependable person into a very complicated loan process which was very difficult to understand ( and I was both an academic scholar and an honors student ). 

For example, when you buy a car or house, both of which I have done, the interest you are paying over the life of the loan is clearly displayed for you. With student loans, it goes beyond not displaying it clearly, and becomes criminal. Not only was I never told about how much I would be paying in interest, I was never informed that the interest accrued during the life of the loan would be added to the principle so that the interest compounded over time- which to me, should be a criminal offense on a student. 

I took out a student loan with XXXX bank in the amount of {$14000.00} XX/XX/XXXX. I began paying on the loan XX/XX/XXXX. They Transferred the loan ( without any real notice ) to AES. I ca n't even get a hold of my payment information from my XXXX account since they transferred the loan. I have paid roughly $ XXXX/month since XX/XX/XXXX resulting in total payments of {$15000.00}. The principle balance I owe on that loan is {$13000.00}. How is this okay? How can we say this information was given clearly enough for a XXXX something to understand. They apply almost 100 % of the payment to the interest- UP FRONT, without affecting the principle. 

To make matters worse, the had to have my mother co-sign because I, at XXXX, did n't have enough credit history to qualify. The loan was transferred to AES and I called them to provide a cosigner release as my credit is in the high XXXX 's low XXXX 's and I have paid consistently for over their 2 year minimum. 

They said they had to " mail '' me a copy of a cosigner release which I then had to mail back. In this day an age with digital EVERYTHING I find it extremely ridiculous that they do not provide a digital option- when you get sign the loan digitally. It is clearly a hoop to jump through. 

Needless to say, they never sent the form, I followed up to have them send again, they still have n't sent it. 

Something needs to be done about the state of student loans and the way we are disclosing information to our students. This is affecting my entire life and I had no idea it would do that at such a young age. The terms should be clearly defined, interest should not be allowed to be compound ( simple interest should be sufficient ) and these companies should be held to a higher standard. 

I am not a doctor, teacher or public servant. I make too much money for me to be able to deduct my loan interest on my taxes, but I have no feasible or fair way of getting out of debt if we do n't stop compound interest. AES, XXXX, XXXX these companies are hiding costs from consumers, not giving clear information, and it results in penalizing hard working people like me. 

Someone should help me and others in my position. I have applied for XXXX Student loan consolidation and refinance loan options and can not get approved and my credit score is in the high XXXX 's and my income is far above the national average. 

What is the solution here? I have more than paid the amount I borrowed. Why is my principle so high? How can this remain a legal practice?