Consumer complaint received 2018-09-10
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 had several loans - XXXX, Federal Stafford Loan, and Federal Unsub Stafford Loan - consolidated in 2004 to a Subsidized Consolidation Loan and Unsubsudized Consolidation Loan, and both loans are set to a fixed rate of 1.625 % as of XX/XX/XXXX. 

I received an email that my monthly payment was soon due, but the amount showing was more than doubled from {$100.00} to {$240.00}. There was no reason for this increase emailed to me to my email address on file that receives my monthly reminders, or paper copy mailed to my home. When I called this morning to inquire what the reason was for this increase in monthly amount due and why I was not notified, I was advised that I was sent an update - directly in the AES website, under " Inbox '', and told that they assumed I would see this communication. Without any notification being sent to my actual email address that there was new communication only sent directly to the AES website under my account, I would have never seen this communication. This communication was sent to my AES Success account on XX/XX/XXXX. I should have received an email to my personal email that this important change in terms was sent to the AES website and would need to be reviewed. 

I was emailed on XX/XX/XXXX as usual that my account was due for a payment on XX/XX/XXXX, without ANY DOLLAR AMOUNT ON IT or any verbiage that the amount would be different than I have been paying for months. Then on Saturday XX/XX/XXXX I received an email reminder that I had an upcoming payment due - and THIS is where I was advised that {$240.00} is my monthly installment amount. I had been paying an additional {$50.00} on my {$100.00} monthly installment amount previously, and this {$50.00} was also added to the total that would be withdrawn on XX/XX/XXXX now totaling {$290.00}. 

The update sent only to my AES account, and the latest email on XX/XX/XXXX does NOT detail why there is an increase in my monthly payment amount. The individual on the phone I spoke to this morning advised me that the promissory note was redisclosed (?? ) and that due to this, there is now an increase in the monthly payment. The document states an interest rate of 1.875 % and for my installment amount, and a new combined monthly payment of {$240.00}. This amount is being listed as what will be taken out of my account through direct debit now. However, when I pointed out to this individual that my loans have a fixed rate of 1.625 %, they advised that no, I do still have this fixed rate through direct debit, and that now more money will be paid towards my balance. How does that make sense, that more money will be taken out of my account and a higher interest rate showing on this new repayment summary? Why is there even a different amount showing on this document, where is there any mention of any promissory note anything and the breakdown as to exactly how these payments that have increased over 50 % are justified? The letter states " Why We Are Contacting You - There has been a change in the repayment terms for the loans listed on the reverse side of this letter. Conditions such as granting a deferment or forbearance, a change in interest rate and interest capitalization ( adding interest to the principal balance of your loans ) are examples of what may have caused the terms of your loans to be recalculated. '' I do not see verbiage of a promissory note, loan re-disclosure, anything within this document. 

Please review the emails attached, all transactions of loans detailing payments, and the " update '' that was only sent to the AES website to my account on XX/XX/XXXX.