Consumer complaint received 2021-04-26
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: AES/PHEAA (TN)

My original case was closed prior to the feedback due date thus taking away my right to reply back. This is why I am opening up another complaint until this can be resolved fairly. 

My Original message : Dear Sir/Madam, I am writing to you regarding my student loan balance with American Educational Services ( AES ). During my XXXX studies, I borrowed from the lender {$9600.00} to pay for tuition and other school related expenses. After graduating in XXXX of XXXX with my degree, I begun making monthly payments to AES starting with my very first payment of {$90.00} on XX/XX/XXXX. In the last 10 years I have made 126 payments in the total amount of {$11000.00}. Today, I only owe {$9200.00}. For the past 4 months I have stopped making these monthly payments as I sought to understand how, after a decade of payments, I have only been able to pay down my debt by less than {$400.00}. I was advised by AES that to receive a response I would need to mail them a letter describing my request. My first letter was sent in early XXXX of XXXX and I have not heard back from anyone to my original letter or those thereafter. In total I have sent 4 letters address to AES and the Office of Consumer Advisory, both located in XXXX, XXXX During this time however they did report my delinquency to the credit agencies which has negatively impacted my credit score. My recent statement notes that my score has declined from a range of XXXX down to XXXX, depending on credit reporting agency. While this is not material to this particular matter it does illustrate the point that I have been a responsible consumer who has always paid their debt as well as the significant impact this has on my future credit worthiness. I have already paid back more than I have borrowed and have not been able to understand from anyone how after 10 years of payments my debt has practically not moved at all. There seems no incentive to continue making these payments for another 10, 20, 30, or potentially 40 years just for them to remain at the same amount as borrowed. I borrowed {$9600.00} with the understanding that I would have to pay that amount back with interest. I firmly believe that after {$11000.00} and 10 years of this financial and mental burden my balance should have decreased by more than {$360.00}. I seek to understand how much of the {$11000.00} should be applied to principal and I wish to settle my debt with AES by paying off the difference between my original balance of {$9600.00} and that principal amount. 

Company 's Response The Office of Consumer Advocacy ( OCA ) at Pennsylvania Higher Education Assistance Agency ( PHEAA ) performed a review of your account. Please Note : PHEAA conducts its student loan servicing operations commercially as American Education Services and for federally-owned loans as FedLoan Servicing. In your inquiry you expressed concern because you believe your Privately owned XXXX loan should have been paid in full. Our review of your account determined that your Private XXXX loan was disbursed on XX/XX/XXXX. In accordance with the terms of your promissory note, you agreed to pay your loan in full, including all interest, within 239 months. Your loan entered repayment on XX/XX/XXXX. At that time, all outstanding, accrued interest was capitalized XXXX added to your principal balance ) and your current principal balance at that time was {$14000.00}. Your monthly installment amount is calculated to pay all principal balance and accrued interest within your maximum term of 239 months. If you make payment to pay your loan in full prior to this, you are responsible for any accrued interest, only through the date you pay your loan in full. In your inquiry, you requested to have your loan forgiven. We are unable to accommodate your request because your loan is being serviced in accordance with the terms of the promissory note that you signed.