Consumer complaint received 2019-05-22
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (PA)

I consolidated with XXXX XXXX in XXXX to take advantage of the Public Service Loan Forgiveness ( PSLF ) plan, when I realized that I was not eligible for this benefit while my loans were with XXXX XXXX. ( I have worked for the same non-profit 501 ( c ) 3 organization since XXXX. ) As soon as I learned of the PLSF program, I aimed to learn the rules of the plan and submitted all of my paperwork in XX/XX/XXXX to consolidate from XXXX XXXX to XXXX XXXX. XXXX XXXX was terrible about communicating the rules of the program, but I did my research online and followed the guidelines. After making two payments under the standard repayment plan, I read online that only income-based repayments are eligible for PLSF. I submitted paperwork to XXXX XXXX for IBR, which took months to process, and I got on the IBR plan beginning XX/XX/XXXX. My loans were transferred from XXXX XXXX ( now defunct ) to XXXX in XXXX, and then to Fed Loan in XXXX. 

In XX/XX/XXXX, I noticed that my payments for the Public Service Loan Forgiveness ( PSLF )  program were miscounted, resulting in approximately 16 missing payments from my eligible payment count. I have tried for months to work with FedLoan Servicing to rectify this issue, but I am very unhappy with the progress of this review. I have asked repeatedly, both by email and phone, for a full history of the student loan payments I've made to all 3 servicers. Both the Department of Education Ombudsman Group and Fed Loan verbally confirmed the payments I made over the telephone, but they refuse to submit this to me in writing. Fedloan has sent me 3 different cryptic, disorganized documents that do not in any way show a full payment history, and they truly lack any semblance of reason. One document had transaction codes with no legend/key for the codes and 50-75 different transactions, many in the amount of {$0.00} or other random small amounts. This is completely unacceptable service for a student loan company to offer a borrower. 

Furthermore, FedLoan has advised me that nearly a year of payments I made in XXXX cant be counted toward PSLF because I was on an " administrative forbearance '' at this time. I have proof that I was billed during this time, made hefty monthly payments, and I did not request any type of forbearance on my account for those months. I would have never made the financially crippling payments if they weren't being counted toward my loan program! This is obviously an administrative error and must be corrected. 

Fedloan has also advised me that some payments I made could not be counted toward PSLF because my payment was one cent off from the actual amount due. I have sent them records showing that my monthly amount due was indeed the amount I paid. A few other payments were a XXXX or a few dollars off because I paid a few dollars extra on a month prior when I would sometimes round up to the nearest dollar when making a payment. Beyond this, there were several other payments that Fedloan says do not count towards the PSLF program for one unfair reason or another. I work in public service, and I have struggled to make these payments. I've paid around {$30000.00} of interest only payments to date. My original loan balance was around {$47000.00} ... with compounding interest each month, my balance has increased to {$60000.00}. My only hope for ever ending this overwhelming debt is the PSLF program. Fedloan is making unfair, inhumane decisions with regard to PLSF and it is very evident that they've grossly mismanaged my student loans. I have never made a late payment and have held up my end of the contract as the consumer. Fedloan has breached the contract with me, the loan holder, by not keeping proper records of my payment eligibility, and by never informing me that being paid ahead by even a XXXX could affect my status. ( This information is buried on their website, but in the emails I get each month about my bill it actually gives encouraging tips about paying ahead! ) Furthermore, it is completely unacceptable to not fulfill my request for a full payment history in 3 months time when I am currently making monthly payments in the amount of over {$410.00} to this company! 

I have followed the PSLF program to the letter, frequently certifying my employment for the program. Ive read online about people who werent with the right loan servicer for PSLF, or in the wrong payment plan for years and who are now upset that their payments dont count and have appealed for inclusion in the program. Meanwhile, I did my research and properly followed the program, only to have XXXX instruction or accountability from XXXX XXXX and then my payments mishandled and incorrectly counted by FedLoan! This program is supposed to reward people for work in the public sector. Its become a cryptic, unfair game that is impossible to navigate and has resulted in an insurmountable level of debt! I have a young son, and our entire future rests on me completing this program as soon as possible. I have already been working with the FedLoan Ombudsman group for 3 months. The staff is abrasive and unsympathetic. Please help me rectify this injustice and help me communicate with this organization.