Consumer complaint received 08/30/2017 about Student loan (Private student loan) with AES/PHEAA (PA).
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint: The servicer of my private student loans is American Education Services ( AES ). I have three loans through them, 2 are through XXXX XXXX and 1 is through XXXXT ( XXXX XXXX XXXX ). The problem I am having is with XXXX and AES. 

Recently, I have noticed that my monthly amount due for my XXXX loan has increased. However, the problem is that my interest rate continues to increase, with no reason behind it, other than it is a variable interest loan, but ironically, the interest rate has only increased since I started repaying the loan and has never decreased. 

I called XXXX recently because I am concerned about how my monthly principal amount that has been paid out of my monthly lump sum has been decreasing and my amount to the interest has been increasing. Thus, it leaves me in a situation where I end up paying lesser amounts each month on the XXXX loan principal and over time this extends how long it would take me to pay off the principal balance. 

I asked if I could pay more money each month towards just the principal balance of the XXXX loan when I discussed this with AES. It would involve a number of steps where my current direct debit payment would be suspended for 2 billing cycles, thus eliminating my 0.25 % interest rate deduction, and they could not guarantee that the extra money I would be paying would go directly on the principal. I was planning to contribute an additional {$50.00} per month to just that XXXX loan so that it would make a bigger dent in the principal, thus reducing the amount that I pay with interest on that loan. AES would not allow me to simply add on {$50.00} without first suspending my direct debit. 

The suspension of the direct debit seems punitive to me if it results in my interest rate going back up. I 've submitted a total of 65 monthly payments without defaulting once or being late etc. on all three loans through AES. AES would also not reimburse the difference between the amount of interest that would have been accumulated on the two months that the direct debit was suspended and I 'd be paying a higher amount of interest in those months which is not what I typically would have paid. 

I asked AES if I could pay XXXX directly since they were giving me a hard time. I then found out that AES does not have any contact information for XXXX and there is no address or phone number that I can call to either pay the loan directly or to even pursue alterations to the loan repayment terms etc. I find this ridiculous that I pay money to a company that I can not even speak with nor do I have the address to reach out to them to pursue a phone call or some type of contact. 

I also want to know why I continue to have my interest rate increased over time. It is to the point where, despite the 65 payments I 've made, my interest rate continues to increase, so my monthly payment actually never decreases. It 's a sick game if you ask me. My principal loan amount started at {$29000.00} and it is at {$24000.00} today, a {$4000.00} difference, yet my monthly payments have gone up from {$95.00} to {$200.00} just this month. The monthly payment goes up quarterly and yearly. Just at the beginning of this year it was {$190.00} and at the start of XXXX, it was at {$190.00}. It may not sound like a lot to increase but the problem is that my principal balance has been decreasing the entire time. 

The only help that is offered by AES is to put the loans into deferment or forbearance. But that wo n't help me, it will just increase the principal over time because the loan is still stuck at an interest rate that increases over time. AES 's only response is to consult with a private lender, a company that can consolidate the loans and then pay that company instead. 

They gave me the same run around when I tried to pay XXXX XXXX directly with my loans. They claimed that XXXX does n't have the capacity to manage my direct debit each month. So, they have failed to allow me to renegotiate my loan terms. XXXX had argued with me that they did n't have a loan consolidation program, even though I pay 2 payments to them each month on 2 separate loans with 2 separate interest rates. Which, that to me is pure theft. I 'd be paying a lower amount each month if I simply were to combine the two loans that I pay on each month but XXXX wo n't let me. 

The issue with XXXX is a side note but, yet, another problem. Whatever you can do to help me out I 'd be appreciative of, thank you.

Company response to consumer: Closed with explanation