Consumer complaint received 2017-11-29
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (OH)

My loans were transferred to XXXX in XX/XX/XXXX. Since that time I have been prevented from making on-time payments and have had unauthorized changes to my payment plan which may put my ability to qualify for loan forgiveness into jeopardy. 

A ) My loans were transferred to XXXX as part of the income based repayment and federal loan forgiveness program. During this " transition '', my loans went into a period where they were " ineligible for repayment '', so I was prevented from making my income based repayment monthly payment. For me, this means that my forgiveness is delayed one additional month. This is costly long-term considering interest and higher payments as I advance in my career. 

B ) In XX/XX/XXXX, I wanted to switch my direct online payments from XXXX XXXX to XXXX XXXX  because I had moved. I transferred all funds from my XXXX XXXX account to my XXXX XXXX account and canceled all online withdrawals. I completed the online steps to switch my bank through XXXX and received an email confirmation. When I logged back into my XXXX XXXX account, I saw that I had been charged over overdraft fees due to ongoing unauthorized charges through XXXX XXXX. I immediately called XXXX and was notified that my direct payment cancelation was never processed, despite them acknowledging that they had the paperwork. They refused to refund the overdraft fees and promised that the issue had been resolved. The process repeated itself the following month. Despite numerous calls, emails, and the completion of online paperwork, I could not stop the withdrawals. I eventually reported this unauthorized activity to XXXX XXXX and closed the account. I was told by XXXX over the phone that I should just avoid the direct payment process because their system was not reliable. They were unable to predict how long it might take for the paperwork to process. If you have direct payments set up, you save on interest, so most people would like to take advantage of this. 

C ) I received a letter on XX/XX/XXXX stating that my repayment plan was ending and I needed to reapply for income based repayment. I submitted this paperwork. On XX/XX/XXXX I  received a notice that my application had been denied. After inquiring into this, I was told that I had applied too early and would need to reapply this spring. This contradicts the previous information I had been given. 

D ) Direct depot was still not working for my XX/XX/XXXX payment, despite receiving a letter dated XX/XX/XXXX approving my direct debit application. I made a one-time payment from my checking account. Strangely, I received both an email and a letter dated XX/XX/XXXX offering to help if I was having trouble paying. I logged into my account on two separate occasions and saw that my XX/XX/XXXX payment had posted and saw a {$0.00} balance until XX/XX/XXXX. I assumed that this automatic letter was sent in error. I received a letter on XX/XX/XXXX in my XXXX inbox that my application for forbearance had been approved. I immediately contacted XXXX regarding this issue and have yet to hear back. As of XX/XX/XXXX, my loans show " forbearance '' status. I have had no contact with XXXX between the date of my last payment and this notice. I have no issue paying my bills and forbearance puts my loan forgiveness status in significant jeopardy. 

This represents a fraudulent change to the status of my loans without my verbal or written consent. Their actions are irresponsible, careless, and, at best, negligent. I seek a refund for the overdraft fees I was charged and immediate reversal of my account 's forbearance status. I know I am not alone in serious concerns regarding XXXX 's ability to manage the loans of hundreds of thousands of civil servants, and ask you to engage in an investigation regarding this matter. 

Best regards.