Consumer complaint received 2016-11-28
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: AES/PHEAA (CO)

I consolidated my loans with FedLoan Servicing ( " FLS '' ) in XXXX. I was unemployed when my grace period expired, so I applied for and was granted Income-Based Repayment ( " IBR '' ). I was able to make over-payments/early payments every month to ensure that I paid all interest and cut into principal at least a little. I thought this to be financially responsible. 
In XXXX, I had a trouble re-certifying my IBR because I failed to re-certify on time because I was in the midst of planning my wedding. I was able to straighten things out with FLS fairly painlessly, and continued overpaying my IBR. Every year when I re-certify for IBR, I send paystubs to allow FLS to have the most current information ; my income changed somewhat every year ( up or down ) from my tax returns. 
Everything changed in XXXX, and it has added thousands of unwarranted principal and interest on my loans, which will in turn increase profit for FLS and the years remaining on my loans. The conduct of FLS represents at the very least breach of contract, and at worse, fraud. 
In XX/XX/XXXX, prior to the deadline to re-certify, I submitted a re-certification application. I indicated on the application that I was currently on IBR and wished to re-certify. I also mailed in my and my wife 's paystubs, as is required when re-certifying for IBR. Unfortunately, I also checked a box that I wished to be considered for the lowest monthly payment possible. This apparently was not part of the re-certification application, and disqualifies a borrower for IBR ( see below ). 
In early XX/XX/XXXX, I canceled my direct debit and forewent my XXXX payment because I was in the process of purchasing and financing a home, and wanted to ensure enough cash on hand to facilitate our transition. This should not have been a problem because as noted, I had been overpaying for years. One non-payment in XX/XX/XXXX should not have been a " missed payment. '' Also in early XX/XX/XXXX, because the deadline to re-certify was fast approaching or recently passed, and I had not heard from FLS, I followed up to ensure that FLS had received everything necessary for IBR re-certification. I was told that because I had checked a box requesting the lowest monthly payment possible, I was not being considered for IBR re-certification. I was told that to fix the application, I merely had to fill out a new form and submit online since FLS already had my supporting documentation ( paystubs ). I was also told that the date of this re-application would be considered submitted before the deadline because I had initially applied before the deadline passed. I submitted an electronic re-certification application immediately, and thought the issue had been resolved. It had not. 
In late XX/XX/XXXX, still without having received an update from FLS regarding my re-certification application, I logged on to my account to find that my interest had been capitalized because my IBR had ended. I was told that there was nothing I could do to reverse this, and I was put into an administrative forbearance until XX/XX/XXXX, which is when FLS had hoped to finish reviewing my re-certification application. To ensure that my interest was not capitalized again, I paid off the accrued interest on XX/XX/XXXX. 
My IBR re-certification was not approved until XX/XX/XXXX, and it was approved as income-driven repayment. I made an immediate payment to satisfy the new monthly payment as my account showed a payment due on XX/XX/XXXX. Even though I had continued to may overpayments throughout these forbearances, I was placed in another administrative forebearance on XX/XX/XXXX until XX/XX/XXXX. 
My next monthly payment is due on XX/XX/XXXX. I can not afford to pay off the interest before my forbearance expires and make my next monthly payment, meaning my interest will be unfairly capitalized again. FLS has propagated purposeful confusion, inconsistency, and inefficiency to my detriment and its benefit.