Consumer complaint received 2022-08-14
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (VT)

My Problem is with FedLoan and the Dept. of Education and the XXXX. 

FedLoan last year split my XXXX loan into TWO loans, and the Student Loan Database/XXXX XXXXs only showing ONXXXX of them. My XXXX loan balance, alone, was about {$300000.00}, and now XXXX only shows ONE XXXX loan for {$40000.00}. 

FEDLOAN is showing TWO XXXX  loans for {$150000.00} EACH, plus a SUB loan for {$40000.00}. I don't know why they have done this, they have not properly explained what happened last year, but now I have three " new '' loans with XXXX payments ( because of COVID ) recorded on them. The total balance, as far as I know, is truly what they say at over {$400000.00} but I don't really know as there is no history to check anymore before XXXX. 

I only ever borrowed about {$130000.00} total ( from XXXX ) and the rest is capitalized interest. I have never been in default or anything. I am worried that if my loans get forgiven with these new programs, I won't get the entire amount forgiven because of this weird problem with them splitting the loans. And then how can I ever explain what happened? 

I am " in '' the PSLF program : my first loan was from XXXX and the last loan was in XXXX. I have had so many servicers and it seems like they are not all reflected here. I have consolidated 3 times ( I think. ) I have been in Forbearance or Hardship Deferment for a total of at least 15 years. 

I have been in Public Service since XXXX, and I still am. I could have been in an XXXX plan all those years, but I was always told by my servicer that forbearance/deferment was best. And then I had to consolidate AGAIN in XXXX to get into the PSLF program ( Direct loans only ) and they said that " restarted '' the clock. I could have been making the {$0.00} payments when my income was low, but because of the forbearance, the loan payments always outstripped my income. 

Since XXXX I have finally been making payments until XXXX. Now, with the PSLF program " waivers, '' I could have gotten payment credit for PARTIAL and/or LATE payments or even periods of DEFAULT, but because I was in hardship deferment I get no credit at all. I could have paid {$1.00} and get credit. I only need to make XXXX more payments, which are {$700.00} a month, but my interest grows by {$1500.00} a month, so my payment only pays HALF the interest. I can never pay them off. If my loans don't get forgiven through PSLF or IDR I will be spending Social Security on these loans. I'm already XXXX. 

Fed Loan FINALLY sent me an email, but it doesn't help. They said, " Per your inquiry, on XX/XX/XXXX, we submitted a request to have your current student loan balances updated with the Department. Unfortunately, with the impending loan transfer to the Departments new PSLF student loan servicing company, XXXX, there is potential chance of balance update request we submitted to revert back to the current status. It has been brought to our attention that XXXX handles these types of situations in a different manner ; as a result, if the manual corrections for the balance of your Direct Unsubsidized Consolidation loan does not remain, we recommend once your loan transfers to XXXX you submit a request for them to change the information. 
Please accept our apologies for any inconvenience or confusion that this situation may have caused you. '' THAT's exactly what happened, my loan has " reverted back '' to the wrong amounts.

FEDLOAN also said they split my loan into two loans because " Due to system limitations if the total principal balance or outstanding interest for a Direct Consolidation exceeds {$100000.00}, the loan portion with the high balance will be divided by de-converting the single loan and reconverting it into two equal loans. As these are still considered a single loan, only on portion is reported to the National Student Loan Data System ( NSLDS ). '' WHY are they doing this? WHAT " systems limitations? '' FEDLOAN seems to be intentionally muddying the waters. Are they trying to HIDE loans from the NSLDS? It doesn't even make sense because they split my one loan into two loans that are STILL over {$100000.00} each, so are they going to split them again and give me FOUR loans? Either their system has " limitations '' or it does not. 

What am I supposed to do here? Now they are transferring this MESS to XXXX?