Consumer complaint received 2018-08-03
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: AES/PHEAA (NH)

XXXX. XXXX XXXX, XXXX XXXX. 
XXXX XXXX XXXX XXXX XXXX, NH XXXX XXXX ( XXXX ) XXXX I am appealing to you for help regarding repayment of a student loan and the impossible situation that I find myself in. 

My background ; I have been an XXXX  my entire life with a majority of time spent in XXXX, XXXX and XXXX  XXXX  XXXX. At the age of XXXX, I combined my XXXX expertise with my spiritual beliefs and entered XXXX, earning a XXXX Degree in XXXX and being XXXX   as a XXXX XXXX XXXX. During my XXXX career I found that basic XXXX XXXX   in XXXX  was lacking. I watched people not only suffer physically, but emotionally as well. I knew that this decision was to profoundly change the rest of my life but the XXXX XXXX XXXX has been life long. 

I now work with the XXXX XXXX XXXX XXXX XXXX as a XXXX XXXX   helping people and their families navigate the end of life transition. My personal experiences as well as my broad course of studied has prepared me to provide XXXX  support ; XXXX  care across multiple faith traditions from indigenous cultures to XXXX, XXXX, XXXX and XXXX. Because of my background I have been able to support the diverse cultures now living in the greater XXXX area : XXXX, XXXX, XXXX, to name just a few. 

Of course all of this came at a personal and financial cost. I have student loan debt that is serviced through the XXXX program. Because the XXXX is a 501 ( c ) ( 3 ) non-profit I qualify for the Public Service Loan Forgiveness Program ( PSLF ). Even though the payments are income driven, the amount is based on discretionary income. The federal poverty guideline for location and family size is multiplied by 1.5, This figure is subtracted from your adjusted gross income. The resulting number is then multiplied by 10 % ; then divided by twelve. My initial payment was determined to be {$290.00} based on my 2015 income. After a one time salary increase ( 24 % ) the payments were increased to {$390.00} ( 36 % ) which I can not afford. In the same time interval my mortgage payments increased due to an increase in property tax, my health insurance premiums increased 3 %, utilities increased and I had to replace a vehicle and take on a car payment. 


I attempted to renegotiate the payment amount several times. I can manage the {$290.00} a month and emphasized this to multiple loan representatives. Each time the result was the same. The agency would not recalculate my payment. I was told that my only option was forbearance. During a forbearance I could pay the interest on the loan-however, at the end I would in the same situation. If the interest is capitalized the resulting payment is even higher. The loan servicer-XXXX told me even if I kept sending payments in good faith-unless they were the specified amount the money would not be put toward the loan and they would put me into default. If I do not continue monthly payments I will be ineligible for the program. My employer also tried to intervene on my behalf ; however they are limited in what they can do. At this point I know that I will be capped to a 2 % salary increase each year due to the nature of non-profit work. I am now in a truly impossible situation. 

What I am deeply troubled by is the refusal of the servicer to take any kind of payment. Despite the fact that I could continue to pay my current amount I was informed that it would not be processed and that I would end up in default of the loan. I truly believe this is extortion. I have paid several debts-all XXXX related-by making good faith payments monthly that were agreed upon by both parties. I ask you to help me in this situation. This is the situation that everyone I have talked to with a student loan faces. One solution would be to subtract the borrowers monthly mortgage/rent payment from the discretionary income calculation. My housing expenses exceed 30 % of my income. 

I will gladly continue with the prior payments-only if they will be put toward the repayment program. I have currently been forced into forbearance which will only increase my payments and force me into default. I have worked my entire life to do the work I do. At XXXX I should not be forced into poverty. 

Thank you very much for your time and assistance. 
Respectfully, XXXX. XXXX XXXX, XXXX XXXX.