Consumer complaint received 2019-01-11
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (NC)

Complaint:
My interest is being capitalized on my student loans unlawfully and because of XXXX 's unlawful practices. I pay my student loans based on an income based repayment plan. I received a notice on XX/XX/XXXX, that I would need to recertify my income in about two months and if the recertification was not received by XX/XX/XXXX, my payment would go up. On or about within 72 hours of receiving the notice to complete the recertification, I uploaded my application on the XXXX website on XX/XX/XXXX, and on XX/XX/XXXX, I received a notification that the application was incomplete and needed additional information. I uploaded the requested information to XXXX on XX/XX/XXXX, two weeks before the XX/XX/XXXX, deadline from the XX/XX/XXXX, letter. Pursuant to the letter dated XX/XX/XXXX, my correct application was received two weeks prior to XX/XX/XXXX, and my application should have been processed and not resulted in an escalated payment in XX/XX/XXXX. I realized I had not had a response on my income based repayment application and called XXXX as well as resubmitted my income based repayment application again just to be double sure it was received. I requested my new payment amount and was told that my application had not been processed due to a backlog of unprocessed recertifications on XXXX 's part. I asked that my payment be recalculated so I could make my XXXX payment. I was told that could not be done and a new bill could not be issued for XX/XX/XXXX and once mentioned I would be filing a complaint with the CFPB, which I have done, the call was escalated and I was told by the representative that they would go ahead and immediately process my income based request and would try to have the XXXX payment corrected, but they could not guarantee that would happen. I called at the end of XX/XX/XXXX when I noticed I had no automatic debit for XX/XX/XXXX scheduled on my account and the representative told me XXXX had placed my loans on a forbearance without my permission and the type of forbearance was a status that signified that it was due to a servicer issue. I specifically noted how that would affect me by extending when my loans will be ultimately forgiven and how this was done through no fault of my own. I also specifically asked about interest capitalization and was told that would NOT happen because the status of the forbearance was due to a servicer issue. I received an email tonight, XX/XX/XXXX, at XXXX XXXX stating that if the interest was not paid by XX/XX/XXXX, outstanding interest in the amount of {$18000.00} is going to be capitalized. I did not request a forbearance, change in repayment plan, etc. XXXX did not process my recertification application in time and placed me into a forbearance I did not request and is now going to capitalize {$18000.00} in interest on my student loans. This is unlawful and an abuse of power. I am looking for someone to assist in correcting XXXX 's egregious wrongs. PLEASE HELP!

Company response to consumer: Closed with non-monetary relief