Consumer complaint received 2021-11-27
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: AES/PHEAA (OR)

On XX/XX/XXXX, I spoke with customer service agent XXXX from AES. XXXX apologized for the mistake that AES made by sending me a letter stating that I was ineligible for the XXXX payment plan because my loans were " private loans ''. XXXX then informed me that I was ineligible for the XXXX payment plan not because I had " private loans '' but because I made too much money with my combined XXXX. I was devastated by all of this. I did not see how I could stay in the Standard Payment Plan, which I could not afford. I knew AES was incorrect to state that I had private loans. I also learned from my research that I had other options other than the Standard Payment Plan regardless of my combined XXXX. AES had been managing my account for nearly 10 years XX/XX/XXXX to XX/XX/XXXX. AES should have known what I was eligible for. 

Because AES denied my access to XXXX in XXXX, I panicked because of exorbitant interest capitalization that was occuring on my XXXX loans, capitalization that I now question whether it was legal or not. Because I felt like I did not have any other payment options than the Standard Payment Plan that I had been in for more than 30 years, I would have to continue to forbear and rack up interest. I had other payment plan options but AES wrongfully denied me access to the other payment options. Because of the malfeasance of AES and their inability to correctly service my account and avail me the opportunity of a different payment plan, which I had a legal right to, I decided to consolidate with the Dept of XXXX FedLoan servicing to take advantage of the Cares Act. 

What is purely insane about all of this, is that this would not be my first Direct Loan Consolidation with these same exact loans. I had already done this same Direct Consolidation back on XX/XX/XXXX with the XXXX XXXX XXXX XXXX XXXX XXXX XXXX ACS ) which closed their operation in XXXX. I am perplexed how my FFEL Loans could be consolidated to Direct Consolidation Loans and then in less than 2 months on XX/XX/XXXX my Direct Consolidation Loans with the Dept of Ed and servicer XXXX were turned back into XXXX consolidated loans serviced by ASCENDIUM EDUCATION SOLUTIONS , INC with unknown entity Loan Contact Type listed simplay as : Current Guaranty Agency. This seems illegal to me but how do you hold the Federal government and or Servicers that are hired by the federal government accountable for malfeasance? 

After finding out the above information regarding the two quick but very different consolidations of my loans, I thought to myself, its like my loans were being washed by the Dept of Ed and laundered/auctioned out to the highest bidder unbeknownst to me. I wonder how many other borrowers had this happen to them unknowingly. I found this information out after realizing I could research the history of my loans on the XXXX website. This is a separate complaint that I have addressed in another CFPB complaint. Complaint Number XXXX. Date filed XX/XX/XXXX. 

In XXXX and XXXX, I hit a financial low as my work load was decreased and so was my paycheck amount. on XX/XX/XXXX, I applied for Student loan XXXX XXXXXXXX  but was denied based on the paystub I had submitted. During these years I definitely should have been steered towards an XXXX payment program which I would have been eligible for. The clinic where I work was bought out and I was unemployed. That occurred in XX/XX/XXXX. In XX/XX/XXXX, I had a family emergency which would require me to be a primary caregiver for a few months. On XX/XX/XXXX AES denied a student XXXX XXXX XXXX XXXX because they said they were unable to determine my monthly gross income. I faxed AES the Mandatory Forbearance request Student Loan Debt Burden form they requested with my stated income but they still denied my request. I stated on that form my monthly income of {$2000.00} and I also included in the fax a copy of my paystub. Yet this was not enough information for them. It was obvious to me that I was eligible but not to them. 

In XXXX, I called AES and inquired about the XXXX payment plan. I was told by an agent at that time to lie and state that I didn't have access to my spouse 's XXXX. I never followed through with applying because the agent told me to lie in order to get the lower monthly payment under the IDR payment plan. I believe the conversation was recorded. Based on my handwritten notes of the conversation from that day, I spoke with XXXX on XX/XX/XXXX. She told me that to be eligible for the XXXX I would need to state no access to my spouse 's income to get the lower monthly payment. ( see hand written notes ) Basically, I believe I have been scammed repeatedly by XXXX XXXX and AES with multiple forbearances/deferments when I could have been in an XXXX payment plan years ago. I could have had an adjustable monthly payment that would have accurately reflected my yearly financial income. But instead, I racked up thousands on interest capitalization from AESs repeated steering of me into multiple forbearances and deferments when my monthly payment could have been adjusted to meet my monthly XXXX. I feel like this is negligence on their part, that they did not service my loans properly and in accordance with the law AND that they did not have my best interest at heart but their own interest. Lastly, I believe that my account has been so mismanaged over the years that the XXXX subsidized and XXXX unsubsidized loans have been treated like private loans and thus incurred wrongfully applied interest capitalizations. Also, interest capitalizations that shouldn't have occurred due to forbearances. I have attached just some of the documents to support these claims and would be happy to email more documents per your request. I believe AES practices predatory servicing based on my own personal experience!