Consumer complaint received 2018-05-14
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (WI)

XX/XX/XXXX I called XXXX XXXX to check on status of account due to confusing letters I received stating IDR was denied and my payments would increase to {$770.00}. I was transferred to 3 different people. I spoke to an IDR specialist, XXXX ( female ) ID:XXXX. She stated that I was previously in deferment due to school enrollment status and that is why my IDR plan was denied. She said the application I submitted for XXXX XXXX for a different loan actually went to all of my loan servicers, which is why XXXX changed my payment, and I checked I wanted the lowest payment possible so they put me on a standard repayment plan, although I don't believe the " standard repayment plan '' would qualify as the lowest possible amount. She said I should apply online for a short forbearance in order to allow them time to process my request and then submit a paper application to renew IDR so that it would only go to XXXX XXXX. She helped me navigate which boxes to check on the paper application. She informed me I would need to sign into my online account and then click " manage repayment '' and then click " postpone payment '' to apply for forbearance to avoid making the payment of {$770.00}. 

XX/XX/XXXX I found the forbearance application to be confusing, so I called back and spoke with XXXX ( ID XXXX ) who told me I should not apply for forbearance, but to suspend my direct debit, which would last for 1 month, and then submit my new application right away. She did it over the phone. 

XX/XX/XXXX I uploaded my IDR application and Tax Return documents for both my husband and myself on the XXXX XXXX webpage, using the instructions provided to me on the phone by XXXX ( see above ). 

XX/XX/XXXXI received an email from XXXX about my new repayment terms. I have two repayment plans IBR and Regular Pay as you Earn. My total monthly payment will now be {$130.00}. 

XX/XX/XXXX I called to ask why my student loans increased by {$60.00} when my income has not. I speculated that my one-time tuition reimbursement may have made my income look like it increased. The person I spoke with said to file another application for re-calculation, mark that my income has changed, and then I would submit paystubs. She said that the person who told me to suspend my direct debit gave me " bad advice '' and that I still have a past due amount of {$770.00}. She said a verbal forbearance would transfer the past due amount to the end of the loan. She read me the terms and I agreed. She stated payments will resume on XX/XX/XXXX. 

XX/XX/XXXX - My husband checked our bank account and noticed that an amount of {$770.00} had been taken out by XXXX XXXX. I called and inquired as to why. I spoke with Employee ( ID XXXX ) who transferred me to an IDR Specialist upon hearing my concern. I then spoke to IDR Specialist ( ID XXXX ) who informed me the issue could be cleared up. He said that because I was on Direct Debit and had just applied for a new IDR term, that it was the " perfect storm '' and that this issue happens often. He informed to call my bank and say the " two magic words - Unauthorized Transaction. '' He said the payment was not posted on their end, so it had not be processed and that my bank should cancel it. I called my bank, who informed me the payment had already been submitted and had left my account. I called XXXX back and spoke with XXXX ( ID XXXX ). He informed me that the payment was not posted on their end, so I would have to keep calling back to check on the status of the payment and then could file to have a " credit. '' I asked him how long it would take for me to receive the funds. He put me on hold and spoke with a superior. He then told me that I would be able to receive my refund in 30-60 business days. I asked him if I could file a complaint. He said he could note it on my account. I informed him I wanted to file a formal complaint. He put me on hold. When he returned, he told me he was able to file a complaint. 

My overall issue is that I took all of the proactive steps on my end, within my own capacity, to ensure that I was submitting all evidence required to make affordable and on-time payments. Upon each communication with XXXX XXXX, I followed-up to ensure I was complying with my repayment terms in a way that was affordable for me and my family. I took all of the necessary steps, as directed to me by XXXX employees, to ensure the payment of {$770.00} would be avoided. The bad advice of XXXX lead to an extra {$770.00} being added to my overall loan amount. Then, upon the advice of the next person who told me that XXXX had given me bad advice and has ended my direct debit suspension, I still ended up paying the amount of {$770.00} - and now I am required to call XXXX everyday to inquire about the status of the payment that should not have been made in the first place. And, I am not even guaranteed a refund, and if I am, I have to wait 30-60 days to receive a refund for a payment amount that I have been proactively trying to avoid since XX/XX/XXXX because I can not afford that amount. Now, my checking account has gone negative, which will also cause me to pay an overdraft fee to my bank - all for a payment that was not supposed to be taken out.