Consumer complaint received 2017-07-21
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (VA)

I have two sets of student loans -- one from my graduation from XXXX school in XXXX and another from my graduation from XXXX school in XXXX. The XXXX school loans ( XXXX ) have been on the IBR plan since they entered repayment. This complaint stems out of the mismanagement of my IDR Application of the second set of loans from library school ( which went into repayment on XX/XX/XXXX. Throughout this process, FedLoan Servicing has provided minimal ( and in some instances non-existent ) communication. Similarly, they have continued to acknowledge that my application has been mismanaged, but they have done nothing to ensure that I am protected while they correct their mistake. My XXXX loans are now eleven ( 11 ) days delinquent. I have not received any written notification of the information ( i.e. they are reexamining my IDR application and they are processing my request for forbearance ) that multiple loan agents are telling me verbally. In some instances, they are telling me that they will send me the documentation I am requesting, but not actually doing so. Meanwhile, I am getting disclosures that are inconsistent with the other information that the loan agents are telling me. XX/XX/XXXX -XXXX XXXX Notice of Loan Transfer to FedLoan Servicing XXXX - Welcome from FedLoan Servicing XXXX submitted IDR Plan Request Form & tax return. Selected box that stated " I want to enter an income-driven plan '' and wrote across the top " New Loans Entering Repayment. '' Received absolutely no confirmation that the documents were received or being processed XX/XX/XXXX - Called FedLoan Servicing to ensure that they had received the documents. Was given assurance that everything looked correct and that they were working on processing this. Loan agent suggested suspending direct debit ; so, that I could manually pay the amount in IBR while they just finished up processing my IDR application. I asked loan agent to make a notation on my file about her directions. XX/XX/XXXX - Manually paid loans in IDR per loan agents instructions XX/XX/XXXX - Second set of loans due. XX/XX/XXXX - First written acknowledgement of loans : As you know, we recently received your request for an Income-Driven Repayment ( IDR ) plan. Thank you! We know that you are eager to have your payments recalculated. Your request is very important to us, and we are diligently working on all requests in the order in which they are received.... If your payments are past due and you need to postpone them while your IDR request is under review, we recommend that you request to postpone your payments for no more than 20 days in the future. XX/XX/XXXX - Received email at XXXX XXXX, " We were not able to process your recertification request for your Income-Driven Repayment plan. A letter will be sent detailing the reasons that we could not approve your request and next steps if you think this information is incorrect. '' XX/XX/XXXX - Received paper denial in " Paperless InBox '' stating, " NOT ELIGIBLE YET : You indicated on your request that you are submitting documentation for the annual recalculation of your payment but it is not yet time to recalculate your payment. We will notify you when it is time to submit your annual recertification documentation. '' XX/XX/XXXX - Called FedLoan Servicing. Loan agent confirmed that this was a mistake, and that my IDR application was properly submitted. Put in request to expedite reexamination of IDR application. Loan agent informed me that my loans were delinquent. I asked loan agent to check notation on my file about loan agent directing me to allow my second set of loans to be delinquent. Loan agent offered loan forbearance, while they re-processed application. I agreed, but wanted reassurance that forbearance would not be applied to loans already in IBR plan. She could not guarantee that. Placed me on long hold, had to hang up. No notification that my IDR application was being reexamined has been sent. XX/XX/XXXX - Called FedLoan Servicing. Again, loan agent confirmed that this was their mistake, and that my application was properly submitted. Put in a second request to expedite reexamination of IDR application. I asked for reassurance that forbearance could be processed only as to loans not in IDR. Loan agent confirmed that was possible. I asked to process the forbearance. Loan agent processed forbearance. No notification that my request for forbearance has been sent. Loans still appear delinquent. XX/XX/XXXX Received message in Paperless Inbox entitled, Trouble Paying? We Can Help! stating, We understand you may be having difficulty making your current monthly payment on your student loans. XX/XX/XXXX - Loans still appear delinquent ( As of XX/XX/XXXX Your account is now 11 days past due. ) I called FedLoan Servicing. I was prompted by my loan agent to provide consent to have auto-dialer contact me about my account. I told them they did not have my consent. Again, loan agent confirmed that my application was properly submitted, and my application was mishandled. Told me there was an expedited request to review my application. Also, confirmed that forbearance was being processed, but this could take up to ten ( 10 ) days. Then, agent proceeded to tell me that my account was 11 past due, and that this may affect my credit score. I objected to this disclosure since she was on the one hand telling me that they may do this, but on the other, telling me that they would not do that. She asked if I wanted to talk to someone else. I said, yes. I was told by supervisor ( employee number XXXX ) that they expedited request should have been processed in 24 to 48 hour, but he had no explanation why it had not been processed. He said that he would put in an expedited request for the forbearance. I ask for clarification that they would also supposedly take 24 to 48 hours to process. He confirmed that was correct. I asked why I have no written proof of any my requests. He did not answer. I asked for their policy on submitting delinquencies to credit reporters he said they only do that after 60 to 90 days of delinquency. I asked for written proof of this policy. He said he would email it to me this. Yet, that email has not been received -- either through my regular email server or through paperless in box. I asked to submit a formal complaint. He said he would submit it. I have not received any confirmation that any complaint has been submitted. If you have questions, please do not hesitate to contact me by phone ( XXXX ) or email ( XXXX ). Thanks! XXXX