Consumer complaint received 2017-02-08
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: AES/PHEAA (CO)

Fedloan Servicing ( FLS ) converted {$15000.00} plus interest into unsubsidized student loans in XXXX XXXX. FLS said they were missing a copy of my annual certification form so they withdrew my XXXX grants, converting the grant money to loans. On XXXX XXXX, XXXX, my school principal signed the form certifying my first completed year of teaching service and I mailed it in, but FLS claims they never received it. When I learned they did not receive the form, I re-submitted a copy of it on XXXX XXXX, XXXX and they rejected it. They refuse to convert these loans back to my {$15000.00} grant. 
Upon earning my XXXX in XXXX XXXX, I self-certified my intent to XXXX with FLS within the initial 120 day certification deadline according to my Agreement to Serve ( ATS ). FLS confirmed my intent to XXXX on XXXX XXXX, XXXX. At that time, unknown to me, FLS fashioned an XXXX XXXX, XXXX deadline for documenting my upcoming full year of XXXX. Even though I could not possibly complete my first full year XXXX and have it certified for at least 9 more months, FLS nonetheless started the annual clock running in XXXX, XXXX. They ran the clock out on XXXX XXXX, XXXX. 
FLS erroneously set my annual certification due date based on the anniversary of my initial 120 day self-certification period rather than on the anniversary of my completed year XXXX. According to Section XXXX of my ATS, my annual certification period starts in XXXX XXXX and the clock runs through XXXX XXXX. It states : Annual Certification : Every year, after I have completed each XXXX of my four required school years of XXXX ( as described in Item XXXX of this section ), I must provide my XXXX Grant servicer with documentation of that service on a form that will be available from my XXXX Grant servicer. In my case, I completed my first full school year XXXX in XXXX XXXX and I have until the end of the XXXX XXXX school year to annually certify it. FLS has denied me a full opportunity to comply by my actual XXXX XXXX deadline as defined by my ATS. 
Converting my {$15000.00} XXXX grants to unsubsidized loans is a punitive measure even had I missed the deadline to annually certify my completed year XXXX. Such a severe consequence is reserved for much more severe circumstances. For example, FLS may convert the grant if I failed to graduate ; OR, if I do not complete the required four years of XXXX within 8 years ; OR, if I do not complete a full year XXXX and then do not self certify my intent to fulfill my XXXX obligation. Please note that I was NOT merely self-certifying that I intended to satisfy my XXXX Grant service obligation on my Certification form. Instead, I checked Box A : I XXXX full time for XXXX as was XXXX on XXXX XXXX, XXXX. 
I completed my degree ; I completed a full-time job ; I sent in the form. I was not at risk of losing my XXXX Grant eligibility until FLS invented artificial deadlines and unreasonable conditions for converting my {$15000.00} grant ( plus interest ) to loans. I realize FLS needs to monitor the XXXX grants, but such a punitive result is beyond reason. Thank you for your consideration.