Consumer complaint received 2020-12-30
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: AES/PHEAA (SC)

From the months of XXXX through XX/XX/XXXX, I was transitioning from one position as a federal technician in the South Carolina XXXX XXXX XXXX to the South Carolina XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ) program. Both positions were full time, however the transition took me from one program and placed me in another which also required me to relocate and work in a different area within the state. 

During the transition, there was quite a bit of training I had to complete. To begin, the most important being, the XXXX XXXX XXXX XXXX XXXX. XXXX was required to become qualified as an XXXX instructor. I could not begin instructing students until I had successfully completed the course and also spent two months in training after I had completed the course. To further my use to the organization, I was also required to complete XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX, and other online courses ( the aforementioned were resident courses ). While completing all of this training, I still had to work as a XXXX, in my previous position, to assist as I was not the only individual in my section who was transitioning to a new position. That sometimes led to 18 hour work days with no days off. 

The issue I am having is that FedLoan Servicing refuses to excuse missed payments from the period of XXXX - XX/XX/XXXX. After being made aware of the impact this made on my credit report ( XXXX points ), I contact them via phone. I explained to the representative what had taken place. She informed me that I would be granted forbearance and that the negative remarks/late payments would be removed under the SCRA. I asked her why I wasn't informed of that before I was in this situation and she stated she didn't know. I had previously spoken to one of their representatives prior to that conversation and spoke with her about the Public Service Loan Forgiveness program. When I spoke with her, she mentioned nothing about any protections under SCRA or what I should do in the situation I faced. 

After reviewing my credit report, I noticed why the score dropped over 120 points. FedLoan Servicing has an account opened for each loan. That is a total of 18 accounts being reported 90 days late. After speaking with them, I was informed that I should submit a document for forbearance. I did so, with attached military orders. The forbearance was approved for dates XX/XX/XXXX through XX/XX/XXXX. After the forbearance was approved, I thought the end result would be the same as I was promised when I spoke with the representative over the phone. I was under the impression that the 90 day late payment would be removed due to protections under the SCRA and the forbearance being granted. It did not. I then submitted the forbearance letter to the credit bureaus ( all three ) stating the forbearance was approved in which they removed the late payments, then placed them back. When I spoke with the bureaus, they stated that FedLoans updated the payment status back to 90 days late. Following this issue, I contact FedLoans again to discover what I could do regarding the issue. They then told me to submit a Direct Credit Dispute Form. I did so. Once reviewed, I received a response that my request for the credit dispute was denied. I then appealed their decision. That also came back denied.