Consumer complaint received 2019-03-09
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (NJ)

I have had issues with XXXX since XXXX. I had an issue in XXXX that I tried to address regarding a rebate I was eligible for. They wouldnt address my issue seriously so I complained to the XXXX. Of course then they addressed my complaint and came up with some ridiculous rationale for why I am not eligible. 

When I recently saw they were in the news because they were being sued for manipulating interest, rates, losing payments so people wouldnt be eligible for public loan forgiveness etc. I started looking into the details of my loan. Thats when I found several discrepancies. 


On XX/XX/XXXX According to Federal Student Aid website- I consolidated two loans- Unsubsidized for {$54000.00} and subsidized for {$22000.00}. Supposedly my interest rate when I consolidated was 7.125 % - it is now 6.875 % because I use direct debit, which deducts .25 % from your interest rate. 

I have documentation from XX/XX/XXXX I received a letter form XXXX addressing my complaint to the XXXX stating my Original principle balance was : {$22000.00} & $ XXXX interest rate of 7.375 % - When I called on XX/XX/XXXX number XXXX : they couldnt tell me - What company consolidated my loans because I didnt consolidate with them- - What my original interest rate was before I consolidated - Didnt have the correspondence from XX/XX/XXXX I requested my promissory note and detailed breakdown of monthly interest and principle of the duration of the loan. I have yet to receive that so I may be filing another complaint depending on what that states and the discrepancies that may be found. Im concerned I have been charged the 7.375 % interest rate instead of 6.875 % My current complaint focuses on my repayment terms. 2 years ago I called and asked if I could change my terms, decrease the amount of years, which would increase my payment. They stated I couldnt do that and the only option would be to pay more per month- I started paying {$270.00} more per month. - {$900.00}. When I called on XX/XX/XXXX I inquired about this- the repayment term is 345 months. The representative stated XXXX DOESNT DICTATE the repayment terms on consolidated loans the Department of Education does, which states 345 months. 
I then asked if that is the case why when I was on IBR-PS does it state my repayment term is 146 months, he stated that is the only payment plan with different repayment terms. 





I didnt feel this information was accurate so I researched it online- studentaid.ed.gov it states FFEL program repayment plans- Eligible loan : Direct unsubsidized, subsidized loans, subsidized and unsubsidized federal Stafford loans , ALL PLUS loans and ALL consolidated loans ( direct and FFEL ) Monthly payment and time frame : payments are a fixed amount that ensures your loans are paid off within 10 years ( within 10 to 30 years for consolidation loans ) Eligibility and other information : - All borrowers are eligible for this plan This goes against XXXX statements I contacted the department of education on XX/XX/XXXX ; I spoke with them via chat so I had a paper trail. 
XXXX XXXX ( XXXX ) stated On our website, I do see that a direct consolidation loan can increase the time borrowers have to repay their student loans from 10 years up to 30 years. The length of time you have to repay your loan depends on what repayment plan you have selected with your current loan servicer. 

I asked, Ok, so its 10 to 30 years so there are options, because they are stating that there is only one option. Do I understand this correctly? 

XXXX XXXX. ( XXXX ) Yes that is correct. You can discuss repayment options with your current loan servicer. Borrowers have different needs, so there are several repayment plans. 

I am making a complaint through CFPB because I dont trust what XXXX tells me. Its clear to me that are trying to take advantage and make the most money possible by defrauding people. I have read COUNTLESS articles outlining the same issues.