Consumer complaint received 2018-12-20
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (MO)

I work in the XXXX XXXX and have been trying to move all my loans to XXXX  XXXX so that my payments will qualify under Public Service. I have many Direct loans as well as a two consolidated loans. Prior to this issue I had moved all my loans over to XXXX   XXXX, except for the consolidated loans. I was instructed by XXXX to complete a loan consolidation request and choose XXXX  XXXX  as my servicer. 
On XX/XX/2018, I completed a Federal Direct Consolidation Loan Application with an Income Drive Repayment Request. I completed the request online through StudentLoans.Gov. I chose XXXX  XXXX   as my servicer. 
On XX/XX/2018, I received notice from XXXX that my application had been received. 
On XX/XX/2018, I received notice from XXXX that my consolidation has been completed and I would be receiving notice of my repayment plan soon. 
I did not receive any more communication regarding the consolidated loan for over 30 days. 
On XX/XX/2018, I called XXXX  XXXX, inquiring about my consolidated loans and when can I expect to receive a bill. I was concered about the length of time this was taking and wanted to be sure I had completed everything on my end. The representative explained that XXXX had all required documents and information and processing is just taking a while. He explained that I should be receiving my repayment terms in the next few weeks. 
On XX/XX/2018, I received a notice from XXXX that In order to leave your current Income-Based Repayment ( IBR ) plan to go to another plan, you are required to make a full payment on a Standard plan or make a reduced payment under a period of forbearance. Based on your form, we have applied a forbearance on your account with a required payment amount of {$110.00} On XX/XX/2018, I received a notice from XXXX XXXX   showing my repayment terms on my consolidated loans. The notice stated I was placed on the Standard Payment Plan. 
On XX/XX/2018, I received a bill from XXXX for my consolidated loans, stating I had a payment of {$470.00} ( standard payment ) due on XX/XX/2018. 
On XX/XX/2018, I called XXXX XXXX in an attempt to clarify the situation. I didnt understand why my consolidated loans were on the standard payment plan and what is the forbearance payment. I spoke to a representative who explained that the forbearance payment was required to finish processing of my income based repayment plan. She stated that once I made the payment of {$110.00} then XXXX could finish processing my request and all my loans ( consolidated and others ) would be on the new payment plan. She stated I only needed to make this payment by the date due ( XX/XX/18 ). I inquired what to do about the payment of {$470.00} as I would not be able to make the payment. The representative said to NOT make the payment. She said my account would show past due and that is okay. XXXX will finish processing my payment plan and in another 30 days or so everything would be sorted out. I felt very uneasy about letting my account go past due. I have never missed a student loan payment or been late but I accepted her word. 
On XX/XX/2018, I paid the {$110.00} through XXXX as was required. 
On XX/XX/2018, I received two bills from XXXX. One was for my unconsolidated loans and the payment due was {$1000.00}. The other bill, for my consolidated loans, reflected a balance due of {$960.00}, of which {$470.00} was past due. 
Being extremely concerned, I called XXXX on XX/XX/2018 and spoke with XXXX ( I believe this was her name ). 
After attempting to explain all of the above I asked for clarification and stated I was very nervous about my account showing a past due. After placing my on a significant hold XXXX explained that everything I was told on XX/XX/2018 was incorrect. XXXX said that during this entire time I was supposed to make a payment of {$5.00} in order to complete processing of my income based repayment plan. I was confused as I have never been billed for {$5.00} nor has anyone ever mentioned this to me during any prior calls. XXXX could provide no explanation. I asked her to review the account notes and explain why the last representative told me to pay the {$110.00}. She had no explanation other than that was my monthly bill. She stated now it was too late to complete the income based payment plan and I will need to submit a new application. She also stated I did need to pay at least the past due balance. I explained I do not have those funds and I dont understand why my loans are not on the income based payment plan. Every time I asked how was I supposed to know to pay the {$5.00} she referred to page four of their application for income based plans. I repeatedly told her that I did not use XXXX application, I submitted my consolidation and payment plan request through StudentLoans.gov and was never instructed to pay {$5.00}. Eventually the representative offered that I could place my loans in forbearance which would clear up any amounts due and then submit a new payment plan request. I agreed as it seemed like my only option. During the time I waited for her to complete the processing I found the letter from XXXX dated XX/XX/2018, that references the forbearance payment of {$110.00}. After reading this letter to the representative and, again, pointing out that I did pay {$110.00} on XX/XX/2018, I was placed on another hold. This time she came back and said yes, they will note that was my forbearance payment and they will complete processing of my income based payment plan. She indicated there is nothing further I need to do and in 2-3 weeks all my loans should reflect the new payment plan. So now, apparently everything I was told in XXXX was true. Maybe? 

My issue is that, while my account does not show a balance due any longer, Im very concerned that my loans are still not going to be based on the income based payment plan. I have been trying since XXXX to move these loans over and get them under the correct payment plan. As you can see, I have done everything in my power and I keep getting told to wait ( while also receiving alarming bills, notices and wildly conflicting information ). Every month they arent on a payment plan is another month that isnt counting towards my public service loan forgiveness. 

I desperately need someone to help get this straightened out.