Consumer complaint received 2017-04-15
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Don't agree with fees charged
Company: AES/PHEAA (FL)

On XX/XX/XXXX, letter received time to recertify under the Income-Based Repayment ( IBR ) plan and that the application must be received by XX/XX/XXXX. I submitted the required online application XX/XX/XXXX. A letter dated XX/XX/XXXX indicated I was denied for IBR because it was not time to recalculate my payment and they would notify me when it is time to submit my annual recertification documentation. I called on XX/XX/XXXX and was told that my IBR recalculation was denied due to a processor error indicating that they were waiting on documentation which was incorrect they had everything and that it would immediately be reprocessed. Another letter dated XX/XX/XXXX stated that because I did n't recertify annually that my IBR payment would be increasing to $ XXXX/mth with the first payment to be made on XX/XX/XXXX. I called the day I received the letter 2/8/17 and spoke with XXXX id no. XXXX.XXXX had to do research and he found out that there was conflicting information in the system. One part was saying it is time to re-certify because you have to do so every 12 months by law, however, because whoever processed the IBR plan made it for a 16 mth period and not a 12 mth period another part of the system indicated it was n't time to reapply because I still had 4mth to go on the existing payment plan. He indicated to be safe just resubmit my IBR application and everything should be taken care of. I resubmitted the same day XX/XX/XXXX.A letter dated XX/XX/XXXX indicated that I was approved for IBR and my new payment would be {$490.00} starting XX/XX/XXXX. Another letter dated XX/XX/XXXX was received that says that they approved an administrative forbearance on my loans and that they would send any notification of any interest that accrues and if you do n't pay it the interest will be capitalized. Another letter dated XX/XX/XXXX indicates that the interest amount of {$760.00} is due on the loan. An administrative forebearance had to be processed because they incorrectly denied my IBR application as not time to apply due to servicing error above. I called and spoke with XXXX # XXXX and she indicated this was an error and she would submit to management to review the interest capitalization and get that taken off since it was not my error and it was a servicing error that caused the issue. On XX/XX/XXXX a letter cam that indicates because I did n't pay the interest bill of {$760.00} that if I did n't remit the outstanding interest payment I was consenting to the capitalized interest. On XX/XX/XXXX, I made my IBR payment of {$490.00} which was due on XX/XX/XXXX. The Monthly Billing Statement dated XX/XX/XXXX was received which indicates on XX/XX/XXXX I made the payment of {$490.00}, however that I was {$490.00} past due and that my current payment due was {$490.00} with a total due on XX/XX/XXXX of {$990.00}. The back of the page indicates that the payment I made on XX/XX/XXXX towards my IBR plan was applied to Interest and that I was past due. On XX/XX/XXXX, I called to follow up about the fact that it says I am past due even though I timely made my payment towards the IBR plan and that it was applied wrong as well as to follow up on the Interest capitalization review by management. I spoke with a XXXX # XXXX which indicated that the interest capitalization had been submitted and it was just waiting to get back and it should take 7 - 10 business days. I indicated my concern for credit reporting agency since it shows up that I am past due. On XX/XX/XXXX, I received an email indicating that my request to review the interest capitalization was submitted on XX/XX/XXXX, but the process was still being reviewed. on XX/XX/XXXX a transaction log from the FedLoanServicing website indicates on XX/XX/XXXX Interest capitalization of {$15000.00} was added on my loan with no documentation supporting it increasing my loan balance form {$120000.00} to {$140000.00}. On XX/XX/XXXX there is the entry for the Interest Cap of {$760.00}.