Consumer complaint received 2018-10-07
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (CA)

Takeway : I have been overcharged forXX/XX/2018 for {$1500.00} ( against correct figure of {$390.00} ), and my payments were suspended in XX/XX/2018 at their end while they conducted their investigation. Then they communicated that I am delinquent for the month of XX/XX/2018, for the incorrect figure of {$1500.00}.

Moreover, I still have not been refunded for the extra amount they withdrew in XX/XX/XXXX. Either the extra payment in XX/XX/XXXX should have been adjusted against the subsequent payments ; or the extra amount refunded, and letting the regular withdrawals of {$390.00} continue.

Details/Dates : -XX/XX/2018 : Began the process to transfer loans from XXXX XXXX XXXX XXXX to XXXX XXXX ( XXXX  ) for Public Service Loan Forgiveness -XX/XX/2018 : XXXX XXXX approved my income-driven repayment plan ( Lower ) -XX/XX/2018 : Loan was transferred from XXXX XXXX XXXX XXXX to XXXX XXXX ( XXXX ) for Public Service Loan Forgiveness once I submitted verification that I have been working for a non-profit -XX/XX/2018, I called XXXX in XX/XX/XXXXto see if any additional paperwork was needed They said no, everything from XXXX XXXX would stay the same Email from XXXX XXXX stating that all payments and agreements would stay the same even though I am transferring loans to XXXX XXXX -XX/XX/2018 : XXXX withdrew {$1500.00} from debit account on file when the Income Based Repayment amount based on paperwork submitted to XXXX XXXX XXXX XXXX should have been {$390.00}.

-XX/XX/XXXX and XX/XX/2018 : Spoke to XXXX XXXX and identified the error in their billing- did not charge the Income Based Repayment amount. The representative stated it was a processing error in the application and that I had submitted all necessary paperwork. That XXXX  XXXX  had just not processed the Income Based Repayment information that XXXX XXXX had provided in time for the XX/XX/XXXX  bill due date. They refused to issue a refund to the {$1500.00} bill, even though the amount charged on the XX/XX/2018 bill was incorrect. I had an email stating that I had a reduced amount due instead for my monthly bill. XXXX XXXX stated they would open an investigation into the matter.

-XX/XX/2018 : I faxed evidence to XXXX XXXX of emails I had received from XXXX XXXX stating This change in servicer will not impact the existing terms, conditions, interest rate, or available repayment plans of your federal student loans.

-XX/XX/2018 : I called XXXX XXXX and the representative said that all paperwork from XXXX XXXX was still in the process of being transferred and the new amount would be posted on XX/XX/XXXX. She also said XXXX XXXX would suspend the withdrawal from my account that month and XXXX would send updated information. She stated there would be no penalty for not withdrawing the amount due that month since they were still in the process of completing their investigation.

-XX/XX/2018 : XXXX XXXX processed the Income Based Repayment paperwork that I had submitted and been approved for back on XX/XX/2018. They sent me an email stating We recalculated your monthly payment for your Income-Based Repayment ( IBR ) plan. We used your income documentation and family size to determine your monthly payment of {$390.00} which is first due on XX/XX/2018. Your new monthly payment amount is effective for all payments due between XX/XX/2018 and XX/XX/XXXX. You are still responsible for any payments due before XX/XX/XXXX.

-XX/XX/XXXX stated my account is past due for a payment amount of {$1500.00}, even though the repayment amount should be {$390.00} per documentation that I submitted in XX/XX/2018 and in XX/XX/2018 they were still in the process of investigating the error in their processing the application.