Consumer complaint received 2016-06-20
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Trouble with how payments are handled
Company: AES/PHEAA (DC)

On XXXX/XXXX/16, I called my provider, FedLoan servicing to confirm that I could switch from my then XXXX payment plan to the XXXX plan in order to reduce my payments while allowing me to continue to be eligible for the XXXX program. I was told that I was eligible and it was confirmed that my monthly payment would be reduced. I sent in the application and on XXXX/XXXX/16 I received an email confirming that they received my information and on XXXX/XXXX/16 I received an email stating that they 've processed my request. To my shock, I received my bill for payment due in XXXX that had gone up from {$650.00} to {$840.00} and a letter from FedLoan servicing stating that I had been put on the Standard Repayment Plan, not the XXXX I applied for and their agent confirmed I was eligible for. I called FedLoan on XXXX/XXXX/16 to figure out what had happened XXXX Employee XXXX stated that they were following XXXX Guidance which states that those applying for a different plan are put on standards for a month while processing occurs. He said that starting XXXX/XXXX/16 I will be under XXXX and it would the correct amount would be reflected in my XXXX 2016 bill. He confirmed that my 1 month payment under Standard will not count towards XXXX. Since this was never mentioned to me prior I called the XXXX via phone immediately after to discuss this " guidance '' and spoke to XXXX who said I would have to contact the service provider to discuss the terms regarding the 1 month of standard repayment. The agent I talked to was XXXX who stated that I would have to talk to my provider regarding the processing time/being put under standard repayment. I then called FedLoan back immediately after and spoke to a supervisor, XXXX Employee XXXX, who confirmed that I will be under Standard for 1 month and pointed me to online application I filled out which states that I will be put under 1 month of Standard. XXXX If I am currently repaying my Direct Loans under the XXXX plan and am requesting to change to another income-driven plan, I must be placed on the Standard Repayment Plan, and can not change to the plan that I requested until I make a payment under the Standard Repayment Plan or make a payment under a reduced-payment forbearance. '' She confirmed that I will be paying under XXXX as of XXXX/XXXX/16, but by XXXX/XXXX/16 the amount due will be {$840.00} and that will not count towards XXXX. I paid that bill on XXXX/XXXX/16. Today, XXXX/XXXX/16, I received an online bill that states that I am still under the Standard Repayment Plan and that another {$840.00} will be due by XXXX/XXXX/16 despite what I was told. I called today and first spoke to XXXX Employee # XXXX, she told me that they had 30 days from the date they received my last payment ( XXXX/XXXX/16 ) to update my account to XXXX, and she said it could take up to 3 months to process and did n't understand why that had n't been explained to me prior. She said that she can put in an note to expedite the process and she stated that the new amount would be reflected online but could n't guarantee that it would be done in time for my XXXX bill. I mentioned that I had been promised by XXXX employees that the process would be done in time for my XXXX payment. She suggested I speak to a supervisor and transferred me over to XXXX # XXXX who said it should have been explained to me that in can take up to XXXX billing cycles for the new in come payment switch to take effect. She referred to the dept of ed guidance again and stated that she could n't do anything about the payment for XXXX since the bill had already been generated but that she would put in a note for it to be expedited but could n't promise that it would be done in time for XXXX. I explained that I 'm filing a complaint with the CFPB and I ended the conversation.