Consumer complaint received 2018-03-05
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (AZ)

In XX/XX/XXXX, I moved my loans from XXXX to XXXX XXXX XXXX in order to participate in the Public Service Loan Forgiveness Program. At that time, XXXX XXXX XXXX reviewed my XXXX  account history to determine the number of qualifying payments for this program. Twenty-Six of the 36 qualifying payments were credited. I contacted XXXX XXXX XXXX in XX/XX/XXXX upon learning of the 26 qualifying payments to dispute the remaining ten that were not credited. I was told that another review would be conducted to credit the remaining 10 payments and that this review would two to four weeks. I called XXXX XXXX XXXX each month thereafter to check on the status of the review. When I initially called following the XX/XX/XXXXphone call, I was told that there was no determination from the initial review and that the customer service rep I was speaking with at that time would open a new review. This same situation occurred each month I called ; no one could provide me any information about the previous review and a new review was opened with each new phone call. Further, every time I called, the customer service rep treated the issue as if it were brand new ; no one was reviewing my account or the notes from previous phone calls unless I insisted they do so. It In XX/XX/XXXX, I spoke to a gentlemen named XXXX  who explained the issue with my account was that XXXX had reported my account as having been in an in-school deferment for the period of XX/XX/XXXX through XX/XX/XXXX. I explained this was not the case. In XX/XX/XXXX, I returned to school and took out a third loan. XXXX immediately placed all three of my loans in an in-school deferment. I contacted XXXX  in XX/XX/XXXX upon learning about the deferment ( after I had already made my XX/XX/XXXX payment ) to request the deferment be removed from my initial two loans. They removed the deferment effective XX/XX/XXXX. I continued to make the scheduled payments through XX/XX/XXXX when the loans were transferred to XXXX XXXX XXXX. Rick explained that I needed to submit proof of payment for the months of XX/XX/XXXX throughXX/XX/XXXX. He assured all payments would be credited upon another review of the account and that it should take no longer than two to four weeks. I was told he would call me back to follow up with me and let me know the review was complete. I never heard anything.

I have contacted XXXX XXXX XXXX several times since XX/XX/XXXX, almost monthly, to follow up on these ten remaining payments. Each time I have called I was told the review was not complete, but all of the documentation needed had been received. I was told by each customer service rep that they would send a message to the team conducting the review requesting a determination and that someone contact me. Again, I never received a reply.

On XX/XX/XXXX, I again contacted XXXX XXXX XXXX to get an update about the ten missing payments. I was informed that XXXX XXXX XXXX was unable to credit the payments as qualifying payments because during the time period in question XXXX had reported my loans as having been in a deferred status. I explained to the customer service rep I spoke to that this was not the case and there were notes in my account that indicated this to be false. I also told him that I had spoke to XXXX in XX/XX/XXXXand had submitted all of the documentation requested to dispute this issue. The gentlemen I spoke to said there was nothing he could do to help me and that I needed to contact XXXX.

I immediately hung up and called XXXX. XXXX   reviewed their records and confirmed that they had in fact placed my account in an in-school deferment ( as described above ) for the period of XX/XX/XXXXthrough XX/XX/XXXX. They also confirmed that the deferment had been removed upon my request on XX/XX/XXXX, to be effective immediately on XX/XX/XXXX. My account was NOT in a deferred status of the period ofXX/XX/XXXXthroughXX/XX/XXXX. The representative at XXXX  also explained that this information had been submitted to XXXX XXXX XXXX in XX/XX/XXXX when the initial loan transfer took place.

After hanging up with XXXX  I called XXXX XXXX XXXX again and asked to talk to a supervisor, per the recommendation of the XXXX   representative who assured me XXXX XXXX XXXX had all the proper records to update my account as I had been requesting. I spoke with XXXX, employee ID XXXX. Upon explaining the situation to XXXX, she was very indifferent to my situation. When I explained I have been calling for a year to try to resolve this issue she repeatedly told me there was nothing she could do about all of the previous phone calls or the promises and assurances made by XXXX XXXX XXXX customer service reps. She further explained that each time a customer calls in, the customer service rep treats the phone call as if the issue is an isolated event and does not routinely check the history of the account or any notes to determine what has already been discussed or the status of any previous reviews. When I explained my frustration with this and that I feel that I have been getting the run around, she told me there was absolutely nothing she could do.

I asked that XXXX review the account, insisting that XXXX had sent the appropriate documentation to XXXX XXXX XXXX to prove I had not been in deferment during the time period in question. XXXX   response was that I need to submit a letter to XXXX XXXX XXXX   requesting the deferment be removed from my account and that all payments for the time period in question be applied to my account. I submitted the requested letter onXX/XX/XXXX.

XXXX also instructed me to submit proof of payment for the time period. I have already done so, twice. XXXX informed me that it would take 7 to 10 days for the deferment to be removed from my account, the bills to be issued for that time period and all payments to be applied accordingly. It would then take another 3 to 6 months for a new review to be conducted to credit the ten missing payments as qualifying payments for the Public Service Loan Forgiveness program.

After not having heard anything from XXXX XXXX XXXX, I contacted them again in XX/XX/XXXX. I was told at the time that the deferment had been removed as I requested and that the payments for the time period in question were being reviewed and would be applied within a few days. I have repeatedly called XXXX XXXX XXXX  over the past few months ( today is XX/XX/XXXX ) and am told each time that the review is still being conducted. I am told I need to just sit and wait, that there is nothing that can be done. When I asked the representative I was speaking to ( XXXX, employee ID XXXX  ) who I needed to speak to in order to receive a determination about the missing payments, he told me he didnt know. He had no knowledge of who is conducting the review or who I could talk to. He escalated my phone call to XXXX ( employee ID XXXX ) who explained that there is nothing that can be done except to sit and wait for XXXX XXXX XXXX   to complete the review of my account. They are unable to provide a time frame or any kind of guarantee that the payments will be correctly applied to my account. Further, XXXX explained that this is my fault because I was informed in XX/XX/XXXXthat the deferment needed to be removed. This is ABSOLUTELY not true. I was never informed about the issue with the deferment until XX/XX/XXXX, at which time I immediately took action to remedy the situation.

I have done everything I can to ensure that this issue is resolved. I have spent a great deal of time following up with XXXX XXXX XXXX to achieve nothing. I have done my part, I have made my payments. XXXX XXXX XXXX is giving me the run around and refusing to correctly apply the qualifying payments. If these missing payments are not applied, I will be forced to pay them at a monthly payment amount that is more than double the original payment as my income has increased in the time since those payments were initially made. I can not express strongly enough my frustration with this whole process and the lack of concern or care demonstrated by XXXX XXXX XXXX. I have been lied to, misled and my account is being grossly mishandled. I respectfully request assistance from the Consumer Financial Protection Bureau in having these payments correctly applied to my account.