Consumer complaint received 2017-09-03
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (FL)

I believe my matter has been resolved, however I think it is important to report the length of time it took for the institution managing my loans, XXXX XXXX, to process my request to switch payment plans. I am concerned that my experience is not a unique one, and that other borrowers working with this company may not be treated fairly, or have their loan handled correctly. 

On XX/XX/XXXX I submitted an application to move my student loan repayment plan from the Income Based Repayment Plan to the Revised Pay as You Earn ( REPAYE ) income plan. On XX/XX/XXXXI received an e-mail from XXXX XXXX that my request to switch payment plans had been received and that I would receive a response within 10 days. I received a subsequent e-mail 12 days later on XX/XX/XXXX that my request to switch payment plans was put on hold and that I would receive a follow up e-mail detailing if I would be approved or if they would be unable to process my request. On XX/XX/XXXXI received an e-mail that my income driven repayment request was placed on hold until XX/XX/XXXX. On XX/XX/XXXX I called XXXX XXXX and spoke with XXXX, employee number XXXX who stated she did not know why I received an e-mail stating my request to switch payment plans was put on hold. She stated it may take between 30 and 60 days to process my request to switch repayment plans. I received mailed correspondence dated XX/XX/XXXX that XXXX XXXX placed my account on an administrative forbearance from XX/XX/XXXX and then a reduced payment forbearance fromXX/XX/XXXXuntil XX/XX/XXXXXXXX Each time the loan is placed on a forbearance the lender is able to capitalize interest on the loan. I called XXXX on XX/XX/XXXX and talked to XXXX, XXXX, and asked why two forbearances were placed on my account. She stated, This was necessary to process my request to switch payment plans. '' I said it seems that I am being penalized with capitalized interest twice because there are two deferments. She stated, " It really does n't matter because your debt will be forgiven through XXXX XXXX XXXX XXXX. '' She stated to wait until after XX/XX/XXXX and then to make a {$5.00} payment which was needed in order to switch me to REPAYE. I logged into my account and did not see a bill for {$5.00}, and so I called XXXX and spoke with XXXX, and then XXXX, XXXX. XXXX said I should have payed {$5.00} before XX/XX/XXXX, but that he, " saw what happened here, and that I could make the {$5.00} payment at any time. '' He then asked if I wanted to pay {$5.00} today. He said the XXXX bill had not yet been generated, and that he would escalate my account so that the XXXX bill would be on REPAYE. I was transferred to XXXX, XXXX and made a {$5.00} payment which was needed in order to switch me from IBR to REPAYE. On XX/XX/XXXX I talked to XXXX, XXXX, since it had now been 86 days since my request to switch plans and I wanted to ensure my XXXX XXXX would be on REPAYE. She transferred me to XXXX, XXXX, who told me I needed to pay {$5.00} in order to switch from my current plan to REPAYE. I told him I paid {$5.00} on XX/XX/XXXX and he said that payment did n't count because XXXX did not generate a bill for {$5.00}. I complained that this would be XXXX 's fault. They told me to pay {$5.00} in order to switch plans, and they should have taken the necessary steps to apply my payment as they said they would on XX/XX/XXXX. He put me on hold and then stated, " He will send an e-mail to the processor who will contact XXXX, XXXX, who will generate a {$5.00} bill for my payment to go against. '' This would allow me to then be on REPAYE. He said by the end of the week I should know what I am paying for XXXX and that the XXXX bill would be on REPAYE. On XX/XX/XXXX I talked to XXXX, XXXX, who stated I should pat {$5.00} in XXXX and that my XXXX payment will be on REPAYE. I recounted what I had talked about with the previous XXXX XXXX reps, he said he did not see that in his notes. I explained that I take notes and that I 'm sure the calls are recorded. I asked if he could verify the previous calls and he said that he could not and that I should again pay {$5.00}. I told him I have no faith that if I paid {$5.00} that I would be placed on my requested plan given the past history and ended the call. I called back again on XX/XX/XXXX and spoke with XXXX XXXX and stated that I had discovered that the Dept of Ed has a goal for lenders to process requests to change payment plans in 15 days. I found this in a XXXX XXXXXXXX article datedXX/XX/XXXX, and that if the lender does process my request in time for my XXXX payment it will have been 119 days. At that time it had been 88 days since my request. I was transferred to XXXX, XXXX who stated I needed to make a new payment for {$5.00} in XXXX in order to be switched to REPAYE. She then stated that the work handled on my account earlier that day was not handled correctly and that she would submit a complaint. OnXX/XX/XXXX I made another payment to XXXX XXXX in the amount of {$5.00}. After making the payment I checked my inbox for their website and received a letter stating that my XXXX payment will be on REPAYE. Also in my inbox were two letters dated XX/XX/XXXX. The first letter advised that the administrative forbearance on my account was changed to be from XX/XX/XXXX to XX/XX/XXXXand another letter advised that my account had a reduced payment forbearance from XX/XX/XXXX. The issue that I have is the length of time it took the lender to process my request to be on REPAYE. I was removed from my Income Based Repayment Plan in XX/XX/XXXX and do not expect to be on REPAYE until XX/XX/XXXX. I am seeking to make 120 monthly payments under a qualifying payment plan for XXXX XXXX XXXX XXXX. These four months that the lender took to process this change are a period of time that is not counted for XXXX because the lender is immediately able to remove you from your qualifying plan, but unable to expediently put you on a new qualifying plan. Additionally, the lender is able to capitalize interest on the loan. The 120 days it took to process my request are very much in excess of the Dept of Ed stated goal of 15 days, and the lenders original stated expectation of between 30 and 60 days. I am wondering if the slow processing of this type of request may net the lender more money as they are handling the loan for a longer period of time and able to capitalize interest on the loan during that period of time. Additionally, had I not continued to call, I am not confident I would have been put on REPAYE at all, perhaps not until sometime until after XX/XX/XXXX. My student loan balance was {$190000.00} on XX/XX/XXXX. The balance is now {$230000.00} after interest capitalization, an increase of {$40000.00}. From XX/XX/XXXX to present I made student loan payments totaling {$400.00}, broken out as two monthly payments in the amount of {$190.00} and two payments in the amount of {$5.00}. I am concerned that XXXX XXXX is not able to provide consistent information over the phone, and may be mishandling other peoples loans in addition to mine. The time it took to process my change of plan request was unreasonable, as is the amount of time it takes to ensure XXXX XXXX is not mishandling my loan.