Consumer complaint received 2017-09-24
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: AES/PHEAA (NC)

I have a number of loans with XXXX XXXX. I am on an income driven repayment plan and am participating in the Public Service Loan Forgiveness program. I am required to provide income documentation every year. This information was due at the end of XX/XX/XXXX. XXXX requested that I submit this documentation electronically through their website. I tried several times to do this between XXXX andXX/XX/XXXX, but their website was broken and would not interface with the IRS. Therefore, I submitted my documentation via StudentLoans.gov and mailed income documentation on XX/XX/XXXX. 

OnXX/XX/XXXX I received an email from XXXX saying my documentation had not been received and my payment had been recalculated to over {$1000.00} per month. My income has not changed and I am unable to make a payment this large each month. I spoke with a XXXX representative onXX/XX/XXXX. She confirmed that my income documentation had been received at this time. She could not tell me when my documentation would be approved and would not allow me to continue making my normal income adjusted payment ( about {$400.00} ). When I said that I could not make the full recalculated payment, this representative said my only option was to go on Forbearance. She indicated that interest would continue to accrue on my loan. She did not bring up interest capitalization. 

My user profile on XXXX XXXX website indicates that {$8300.00} in interest capitalized on my loan principle onXX/XX/XXXX. I did not receive notification that this had occurred at the time. I only receive interest notices each month, usually with an amount of about {$500.00}. 

I continued receiving bills in excess of {$1000.00} through XX/XX/XXXX. Each month I would call XXXX  XXXX to ask about the status of my documentation and when I would be approved for a payment plan. In each case, the representatives could not tell me the status or when it would be approved. Each month they said my only option was to extend forbearance and did not offer any information about interest capitalization. 

When I called on XX/XX/XXXX the representative suggested that I not make my next payment ( due XX/XX/XXXX ). I asked if my documentation would be approved by then, but they would not provide an answer. 

I finally received notice that my payment plan had been approvedXX/XX/XXXX. I have made two other payments totaling {$910.00} since this date and XXXX has continued to capitalize interest to the principal of my loans. My beginning loan principal ( as of XX/XX/XXXX ) was {$95000.00}. My current loan principal is {$100000.00}. 

XXXX failed to provide the communication infrastructure for me to submit my income documentation electronically. After submitting it via postal service before my current payment plan expired, they delayed processing my paperwork for several months. In that time they would not allow me to make affordable payments, or payments that qualified for PSLF. They also failed to provide me with all the information needed to know what was happening to my loans or to make informed decisions. During this time they have also added nearly {$10000.00} to the principal of my loans. I contacted XXXX XXXX again on XX/XX/XXXX asking them to reverse these charges as they are responsible for the delays. The representative said they would review the account, but I have not received any communication from them.