Consumer complaint received 04-08-2017 about Student loan (Federal student loan servicing) with AES/PHEAA (CO).
Issue: Dealing with my lender or servicer
Sub-issue: Don't agree with fees charged

Complaint: Dear Consumer Financial Protection Bureau, I know that you are busy, but this important. My goal is pay off my AES/PHEAA student loans in full but I feel that AES/PHEAA is unjustly and illegally assessing defaulted borrowers completing rehabilitation programs with illegal fees and collections costs. 

Let me explain. I have XXXX student loans with PHEAA and have just completed 10 months of rehabilitation. Based on my income in XX/XX/XXXX ( XXXX ), I consistently made XXXX-dollar monthly payments over 10 months. 

At the start of my rehabilitation, I informed PHEAA that per the signed agreement, the collection cost charged should not be more than 16.5 percent ( please see attachment ). 

I calculated that PHEAA was charging me over 18 percent collection costs, interest, and explained this to PHEAA both by email and in a letter explaining the error. Despite mailing and emailing PHEAA with this information over the course of 7 months, I never heard a response from my emails or letters. 

Instead, over 10 months I have spoken with PHEAA representatives, who stated verbatim during recorded calls that I should not worry, since at the end of rehabilitation all collections costs ( over {$30000.00} ) would be immediately removed from my student loans. 

On XX/XX/XXXX, deeply concerned about the lingering incorrect amount of student loans, I called PHEAA regarding the collection fees - ( XXXX - ID : XXXX ) who explained she could not help me with this but informed me that my student loan monthly bill would be over {$700.00} beginning XX/XX/XXXX. 

Asking for further help, XXXX supervisor XXXX then explained AES did not have any information about collection costs or my students, although those costs bad been included in the cost of the current student loan balance. 

XXXX then transferred me speak with XXXX, at PHEAA, AES 's parent company. 

Representative XXXX at PHEAA could not explain collection costs and could find my record of my student loans. When I asked if she could provide me with an AES statement of my student loan balances, XXXX expressed she could not and that she had no information about my student collection costs either. When I informed XXXX records that that AES representatives had told me during my recorded calls that all collection costs would be waived, and noted the letters and emails I have sent to AES over the months, XXXX said she had no information and could not help me at all with anything regarding my PHEAA/AES student loans. 


AES/PHEAA Call Records AES - XX/XX/XXXX XXXX MST - Representative XXXX - ID : XXXX - Transferred to Supervisor - Transferred to PHEAA - XXXX - No one could answer collection cost questions - No one could provide me with any bill or documentation of student loans - No one was willing to assist me with my questions AES- XX/XX/XXXX XXXX MST -Called about completing Loan rehabilitation successfully. 
-Could not provide any information -Informed me I need to wait up to 30 days or more for information PHEAA - XX/XX/XXXX XXXX MST - Called about payments/ Informed that all collection cost waived after completing Rehabilitation ( * denotes Same occurred ) PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA XXXX XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* PHEAA - XX/XX/XXXX XXXX MST* I ask that AES/PHEAA please remove all collection costs from my loans as stipulated during the calls and stipulation of the student loan rehabilitation process, and to please help me in providing repayment options. 

I am grateful for the education I received and am honored to serve others. 

Resounding thanks for your time in this matter. XXXX you always. 

Respectfully, XXXX

Company response to consumer: Closed with explanation