Consumer complaint received 2017-07-07
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (IL)

On XXXX XXXX, 2017, I received a request from FedLoan Servicing to re-certify for my Income-Based repayment plan. In the process of filling out the online form, it appeared that I would pay less if I switched to the REPAYE or PAYE program, so I asked them to choose the program with the lowest monthly payment in the form ( as it recommended ). <P/>In a rather confusing section 6, I did n't choose a one-month reduced-payment forbearance of {$5.00} because I am working toward Public Service Loan Forgiveness and would prefer not to delay that any longer. ( My previous servicer, XXXX XXXX, managed to prevent from getting credit for 14 months in the program, but that is for another complaint ). I thought the standard payment would be the amount I am currently paying. <P/>Time being of the essence, I faxed the form to Fed Loan Servicing on XXXX XXXX, 2017. <P/>On XXXX XXXX, 2017, I received a letter from FLS that my request was incomplete. I called them, and they said the letter was sent in error, and I should ignore it. The first of many mixed messages sent. <P/>On XXXX XXXX, 2017, I received a letter from FLS stating that I in order to leave my plan I needed to either make a reduced payment under forbearance or make a payment on a standard plan for my XXXX payment. They had my reduced payment listed as {$260.00}, the same amount I had been paying for the last year via my IBR plan. The payment they listed for the standard plan would be almost {$500.00}, more than I can pay a month. <P/>Worried that the the {$260.00} would n't count toward PSLF, I called FLS on XX/XX/XXXX. I was told that it would n't, but they would switch me to the minimum payment of {$5.00} for the forbearance payment and switch me to me new plan starting in XX/XX/XXXX. The new payment would be less than I had been paying for the past year. Annoyed that I had to delay PSLF further, but convinced it was my only option, I accepted the {$5.00} minimum payment for XX/XX/XXXX. My full IBR payment of {$260.00} was automatically deducted from my account on XX/XX/XXXX. <P/>Looking ahead to my reduced XX/XX/XXXX payment, I checked my account on XX/XX/XXXX because I was n't sure if I was supposed to make the reduced payment manually or if it would be automatically deducted from my account on XX/XX/XXXX. Instead, upon logging in, my account said I owed {$260.00}, and it was due at the end of my forbearance period on XXXX XXXX. <P/>Frustrated, I immediately called FLS. Learning my lesson, I took down all the names and ID numbers of representatives. XXXX, # XXXX said they could switch my payment to {$5.00} minimum but she would have to transfer me to a supervisor ( the phone call lasted about an hour with all the time I spent on hold ). XXXX # XXXX said they could make the switch but I would have to then resubmit my re-certification information and go to the back of the queue. Not willing to lose more months in working toward PSLF, I asked if I could simply continue to make the {$260.00} payment as it would be more than my new plan until I am switched over. She said she would have to transfer me to the PSLF department. XXXX # XXXX said that the {$260.00} would not count toward PSLF because it is considered a reduced payment. She kept saying the system would allow her to override the payment and change it to the {$5.00} minimum without pushing back my new payment plan to at least XX/XX/XXXX. She said I should either make the payment for {$260.00} or make the payment in full if I did n't want to push back PSLF further. There was nothing she or anyone else could to help me. <P/>Not wanting to delay my work toward PSLF further but unable to afford the full amount, I paid the {$260.00}. I am frustrated by the misinformation I was given at several points during the process. Even on one phone call, I heard different things from different people.