Consumer complaint received 2017-03-21
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: AES/PHEAA (IL)

I am a student at XXXX. ( XXXX ) and although I am XXXX XXXX, the school has not provided accommodations. As a result, my condition worsened. I discussed my options with the school and called " FedLoan Servicing '' about my grace period where I was told that if I drop below half time enrollment the 6 month grace period starts and then resets the moment I return to half time enrollment. 

So I dropped a class XX/XX/XXXX taking me just below half time and returned to full time status in the XXXX. I attended every class, and did all homework. Unfortunately, I still was n't quite well yet, and started having XXXX which I saw a medical professional about XX/XX/XXXX. I was told that if I dropped at that time there would be a full refund and that I would be eligible for student loans in the summer. Based on this, and what I was told about grace periods, I felt safe dropping the semester XX/XX/XXXX intending to continue again in the XXXX. 

FedLoan Servicing instead sent me a letter telling me that my grace period ends XX/XX/XXXX, which would be the case if the grace period never reset in XX/XX/XXXX, but the grace period should end XX/XX/XXXX. This is a big deal, because the XXXX semester starts XX/XX/XXXX, and instead of resting as I am supposed to be, I 'm XXXX over what should be a simple issue. 

On XX/XX/XXXX I sent FedLoan servicing documents from my school showing the date that I fell below half time was last XX/XX/XXXX and I quoted back to them their policy : " If you go back to a Department of Education approved school at least half-time before your Grace Period ends, you will get another six-month Grace Period the next time you leave school. '' I explained that either my grace period should end later, or they lied to me when presenting this policy. They told me the matter would be reviewed and I would get a letter 7 to 10 days later. I waited 16 days, sent another email asking why I have n't heard back from them, then today - XX/XX/XXXX - they said that on XX/XX/XXXX they checked my current status which said I am not currently enrolled. In other words, they did n't even try to investigate the actual matter. They tell me that the school has to update my status as active for them to do anything, which is simply not true. I am not currently enrolled in classes and that should n't matter. 

All I expect them to do is follow the rules they provided me in advance of making decisions about my loans. Either the grace period is set to end XX/XX/XXXX, or they committed fraud by withholding important information from me. Either way, I will be taking classes again starting XX/XX/XXXX and I want grace period issues to be corrected. 

The only reason why I have not already registered for summer classes is because I am still paying the school back for the XX/XX/XXXX semester, and I have to have it all paid back before I can enroll in classes again. It 's especially strange to owe the school money for the loans that FedLoan Servicing denies exists. I told them they should have a record of this, since the school paid them back for the returned student loans, but they act like they do n't.