Consumer complaint received 2019-10-01
Product: Debt collection — Federal student loan debt
Issue: Communication tactics — Used obscene, profane, or other abusive language
Company: AES/PHEAA (CA)

To whom it may concern : Thank you for taking the time to review my complaint and PHEAA. I dont believe they are operating with the best interests of the consumer at heart. I feel they are using abusive tactics to squeeze money out of low income borrowers. 

My circumstances are a bit complicated and my story a long one. I appreciate your time and attention in advance. 

My student loans are not in great shape. For the past decade, ever since I moved to XXXX. Ive been trying to claw my way out of poverty. In XX/XX/XXXX, after undergoing months of garnishment and payment plans to bring my loans out of default, I consolidated my debt with XXXX. Or so I believed. A month or so after my consolidation was approved, I started getting calls about past due payments from two smaller loans one with XXXX and one with PHEAA. I thought perhaps it took a while to for the consolidation to set in. Then I tried calling all three servicers, thinking it must be a mistake. Each told me I had to call the other, sending me in circles. They insisted they couldnt communicate with each other to help resolve the situation. Not knowing what to do, the situation continued on. Finally, I learned I could see a list of all my loans online. Somehow, two loans I took out in XXXX were not included in the consolidation. 

I do feel I need to explain why my loans are a bit confusing. In XXXX, I was displaced by Hurricane Katrina and took out my loans from different sources while I temporarily attended XXXX University. While I know this doesnt excuse my poor handling of the loan, I hope you can see how that might make it hard to keep it all straight when undergoing severe financial hardship. 

As soon as I realized the loans werent included, I contacted all three companies to try to sort the situation out. XXXX gave me the quick clear answer that I need to fill out a form to add a loan. XXXX gave me a temporary forbearance, so Im up to date with them for the time being while I sort everything out. 

Then comes PHEAA. 

On XX/XX/XXXX I gave them a call. When I first got on the phone with an agent, I did my best to explain my confusion and requested to set up a payment plan. His first request was the entire amount of the loan. His lowest offer was still double what my budget would realistically allow me to pay. When I have him my budget, he outwardly scoffed and me and said, We would get more from garnishment. 

We would get more from garnishment. Of my own accord, I called PHEAA to do my best to make a bad situation right and Im met with the options of paying more than I can afford or having them take even more out of my paycheck. This hardly seems to be in my best interest. 

I asked to speak with his supervisor who basically told me the same thing, so I asked to speak to his supervisor, who told me the same thing. 

We can get more from garnishment. 

PHEAAs actions tell me that getting their money back at the rate they set is more important than my ability to function in a very expensive city with a wide spread affordable housing crisis. 60,000 people are on the streets and there but for the grace of god go I. Ive been slowly in the process of declaring bankruptcy for about 5 years. Sending the lawyer money when I can. I dont have wiggle room. 

But they can get more from garnishment. 

After 45 minutes of unrelenting, I talked the guy down another {$30.00} a month less. Still a little less than twice what I can afford, but Ill make it work. I pay the agreed upon amount and it is my understanding that this payment plan takes me out of the threat of wage garnishment. 

This was my understanding until today, XX/XX/XXXX. I called PHEAA in order to make my next payment, which I understood to be due on XX/XX/XXXX, please see attached paperwork. The automated system quoted my outstanding balance as {$800.00} more than the paperwork I received in the mail ( approximately {$4600.00}, rather than {$3800.00} ), changed the due date to XX/XX/XXXX and directed me to the wage garnishment division, despite the fact that I am not officially late in any payment in this plan. 

It seems to me they were dishonest with me when setting up the payment plan, or I would not have been directed to the garnishment division. It seems even stranger that this loan would see a 22 % increase in a single month, despite my calling before my due date. It seems that their bottom line holds more importance to them than the struggling consumer when it comes to repayment. 

Having the loan in garnishment also prevents me from adding it to my major loan consolidation with XXXX. 

I know I am not the only borrower struggling with massive amounts of student debt. I feel I was mislead and forced into a corner and I feel this is abusive behavior. Im sure Im not the only person being received with such blatant disregard. 

Thanks again for your time and consideration. Please let me know if I can submit any other supporting material. 
Sincerely, XXXX XXXX