Consumer complaint received 01/18/2018 about Student loan (Federal student loan servicing) with TRANSWORLD SYSTEMS INC (MO).
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint: In XX/XX/XXXX Federal Direct Consolidation Loan in the amount of {$25000.00}. In XX/XX/XXXX FAFSA stated that the balance on the Direct Consolidation loan was {$35000.00}. In XX/XX/XXXXI was given a forbearance by XXXX XXXX XXXX, and she forgot to file the paperwork for that, which sent my loan into default. She had me wright a letter stating that there was financial hardship because they ceased my income tax because XXXX did not file the paperwork. I wrote that letter based on a conversation with XXXX XX/XX/XXXX, and also a follow up conversations with XXXX on XX/XX/XXXX. Per conversation with XXXX onXX/XX/XXXXat XXXX that would have been MT Time, she stated that the tax seizure would be returned, and the forbearance would go into effect. She did not do that, and she was fired. In XX/XX/XXXXI received a letter from FAFSA in response to my request for hearing, and my objections to collection of a defaulted student loan. They stated that their decision was that there was nothing that they could do. The wage garnishment has continued, and the seizure of taxes since XX/XX/XXXX. In XX/XX/XXXX I sent a letter to President Barack Obama with my objection to the defaulted student loans, and the hardship it was causing my family. FAFSA gave me a phone number to call, at XXXX XXXX. In XX/XX/XXXX I called XXXX XXXX, I spoke with XXXX XXXX. Her number was XXXX, and then in XX/XX/XXXX I spoke to XXXX XXXX, and that was XXXX manager, and then she referred me to XXXX XXXX, and he was XXXX manager, and his phone number was XXXX, and on that phone conversation XXXX  stated that for my student loans had consolidated, and that the total amount borrowed, including interest was {$58000.00}. He stated that I had paid to date the amount of {$40000.00}, and that the current balance was {$48000.00}, and they offered to settle the student loan at {$35000.00}, which meant that I would have paid {$75000.00}, on a loan that I only borrowed on {$58000.00}. When I asked XXXX  why there was such large difference between what I owed, including principal and interest he stated that federal regulations did not stipulate what collection agencies could impose as penalties for their collection agency fees. When I tried to contact them this week, I received a recorded message at Transworld Systems stating that due to the temporary restraining order by Judge XXXX they could no longer service my loan. I called FAFSA, and spoke to XXXX, and she stated that Transworld Systems had not updated my account since XXXX. So although they were collecting money it did not get applied to my account. In garnishments alone since the time I spoke to XXXX XXXX in XX/XX/XXXX, I have paid an additional {$30000.00} that is well over the amount of the original loan plus interest. I spoke to the Federal Clerk at the Federal Claims Office, and he gave me the phone number for XXXX XXXX at the Department of Ed. XXXX XXXX stated that his number should not have been given out since he is not part of the case on XX/XX/XXXX. He gave me the number to XXXX XXXX, and her phone number is XXXX, and her voicemail box is full. I called back to the Federal Court of Claims, and spoke to the clerk again. He pulled up the internal email with direction regarding Judge XXXX  decision to uphold the restraining order, and to halt the collection of defaulted student loans that had already been issuedXX/XX/XXXX. The clerk stated the email regarding contacting XXXX XXXX was correct, and he also provided names of attorneys that would be helpful, and then I called you.

Company response to consumer: Closed with explanation