Consumer complaint received 2022-09-12
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)

On XX/XX/2022 I learned about the CAREs act and more specifically how student loan borrowers who made any payment toward their federal student loan between XXXX XXXX-Current could request a refund on payments made. During XXXX XXXX XXXX I made total payments of {$9500.00}. After reading about the CAREs act and the policy to request a refund, I followed the instructions to contact your loan servicer to request a refund. and called MyFedLoan. I spoke with a gentleman and explained that I would like a refund of all {$9500.00} made toward my student loans. He immediately understood what I was referring to with the CAREs act and told me he would submit the refund request. He then told me it would take between 2 weeks and 2 months to receive my refund but that at any time I could call MyFedLoan customer service and get an update. After the first 2 weeks passed, I gave MyFedLoan a call. They told me that any refund request was out of their hands and they couldnt provide an update, they informed me to wait a couple of weeks and try back again. I happily obliged and waited. After an additional 2 weeks I called back, same information was given to me. Only this time I was told to call the department of treasury who would handle the refund and any updated. I got a number and called, the treasury department told me they had no record of a refund request. I called MyFedLoan once again, explained the situation, and was told to wait a couple of weeks and try to call for an update with MyFedLoan. I obliged and waited. 2 weeks later, now 6 weeks since my original request of refund, I called and was told to call the IRS because they will provide you with an update. They gave me a number which I called and the IRS said they had no record of my refund or any idea what I was talking about. I called MyFedLoan back and was told to wait a couple of weeks for the money to arrive and call back if it didnt come. I obliged. After another 2 weeks ( 8 weeks in total now ) I called XXXX who told me to call StudentAid because theyll have the update on your refund. They gave me a number that I called and StudentAid told me they had no record of my refund request and that they had no idea what I was talking about. I called back XXXX who told me to wait an additional 2 weeks to give the 2 month time frame sufficient leeway. I obliged. After 2 weeks ( 2.5 months later ) I called XXXX who told me to call the department of treasury, again. I explained that I already tried them but MyFedLoan insisted they would be able to help. They gave me a new number which I called and the treasury department had no idea what I was talking about nor a record of refund. I called XXXX back who told me to wait 1 week and call back MyFedLoan for help. I begged someone to help me now since it had been over the 2 month threshold but they assured me it was absolutely out of their hands. Then I asked MyFedLoan customer service rep do you at least see a record of me calling back in XXXX to request a refund to which she told me that they keep no records of such refunds and she promised the refund was coming and to call back in 1 week for an update. I obliged. After 1 week I called MyFedLoan who told me to call the department of education. They gave me a number which I called and the department of education had no idea what I was talking about, nor a record of any refund request. I called MyFedLoan back who assured me that after 2 more weeks I should call back. I obliged. After 2 more weeks, now 3.5 months after my initial refund request, I called MyFedLoan who told me to call Federal Student Loan Ombudsman Group. I reluctantly agreed and called the number XXXX gave me. After speaking with the Ombudsman group and explaining this awful situation, they swore to me that MyFedLoan has to have some kind of record of my refund request and that MyFedLoan were the only people that would be able to help me. I called back MyFedLoan on XX/XX/2022 and explained all of the above to the customer service rep who got a manager on the phone. I explained again the entire situation from the beginning and the manager said Oh, yes I do see a note here on your account that you requested a refund back in XXXX but that we never actually submitted it, Im sorry Ill submit that now. Please wait between 2 weeks and 2 months for the refund to come. I wanted to cry. After all of the phone tag I played and the misinformation MyFedLoan gave me, it all turned out to be pointless because they forgot to submit the request. Before she submitted the request I informed her that my bank account on file was closed and that I had a new bank account. She told me she couldnt do anything about that and on XX/XX/2022 the actual request went in to be sent to my old, closed bank account. They told me to call back after 2 weeks for an update. I obliged. After a couple weeks on XX/XX/XXXX I called and the person on the phone at MyFedLoan told me that the refund was sent that day, XX/XX/2022 and I should see it in my old and closed bank account. I explained that the bank account they sent the money to was closed to which she told me after we attempt to send it to a closed account, the transaction will bounce back and then we will need to mail you a paper check which can take up to 6 months. I wanted to cry. I asked to speak with a manager who told me the exact same thing. On XX/XX/XXXX I called back again to see if they had an update on the paper check being sent. They told me that my loans had been transferred to a new loan servicer, XXXX. It is now XX/XX/XXXX. 5 months later, no idea where my refund it, I am devastated and angry.