Consumer complaint received 2016-07-16
Product: Student loan — Federal student loan servicing
Issue: Can't repay my loan — Can't get flexible payment options
Company: AES/PHEAA (KY)

XX/XX/2015, I was directed by Fed Loan Servicing ( " Fed Loan '' ) to recertify my income for my income-based repayment plan. Since my wife and I file taxes jointly, I needed to include her income, but she is a XXXX and does not receive regular pay. My salary is the vast majority of our income, her pay comprises around XXXX % of our income. 
In XX/XX/XXXX, I submitted a verification with a summary of gross receipts evidencing my wife 's income and my pay stubs. Weeks later, I received a letter notifying me my application was denied due to insufficient documentation. I called Fed Loan and found it the insufficiency dealt specifically with my wife 's income. 
In XX/XX/XXXX, I submitted another verification, this time with my wife 's business 's bank statements for the previous 4 months detailing her average income. Again, weeks later, I received a letter notifying me my application was denied due to insufficient documentation. I called Fed Loan and found it the insufficiency dealt specifically with my wife 's income. I was told to submit a letter signed by my wife stating how much money she earns on average and how often. 
In XX/XX/XXXX, I submitted a third verification with a letter signed by my wife detailing her gross business income, gross expenses, and average net take home pay as well as my pay stubs. I also decided to change repayment plans from income based repayment to the REPAYE plan. Finally, weeks later, I received notice my application had been received and was being reviewed. 
After a few more weeks, I called Fed Loan for a status. I was told that it would take about 2 months to review the documentation I submitted to come up with a new payment amount. At this time, because my previous attempts to recertify my income were rejected, I was moved to a standard repayment plan automatically which almost doubled my payment due. I made the payment in XX/XX/XXXX hoping the situation would resolve soon. In XX/XX/XXXX, I requested a forbearance to continue to pay my IBR payment amount. My forbearance request was denied and a direct debit for the full amount, in addition to the reduced payment I had set up was made, i.e. I paid 3 times my normal amount due to the direct debit. When I called Fed Loan, I was informed they rarely gave out refunds for extra payments, but that the rep would put in a request for this situation. I never heard about it again. 
In XX/XX/XXXX, I submitted another forbearance request and continued waiting for an update. In XX/XX/XXXX, I called for a status and was told I needed to name an interim repayment amount while Fed Loan switched me from IBR to REPAYE. I did this and paid the amount. 
In XX/XX/XXXX the new payment amount still had not taken effect. I called Fed Loan again and was told I was close to being complete and that a new amount should show up around my payment date. As I was in forbearance, I made no payment. 
Then, I received a letter postmarked XXXX XXXX informing me that I owed Fed Loan a payment on XXXX XXXX. My outstanding balance again was somehow combined with the next two months to make an outstanding balance over {$1000.00}. 
XX/XX/XXXX, I received a call from Fed Loan detailing that my request for REPAYE was denied due to, surprise, documentation for my wife 's income. I was told her letter submitted in XX/XX/XXXX contained too much (? ) information and that they only wanted a simple statement of income. They told me to fax in a new application and documentation and wait. I did, and have heard nothing. 
It took Fed Loan five months to review the sufficiency of the documentation I submitted in XX/XX/XXXX. This forced me into a forbearance which increased the overall interest accrued on my loans which will later be added to the principal. I have consistently received conflicting, inaccurate, or incomplete information. The level of mismanagement is ridiculous.