Consumer complaint received 2026-04-21 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: AES/PHEAA
State: NC

Complaint narrative:
Complaint Narrative XXXX XXXX XXXX Refund NonCompliance & Contradictory Federal Records I am filing a complaint regarding the failure of American Education Services ( AES ) and the Pennsylvania Higher Education Assistance Agency ( PHEAA ) to process my XXXX XXXX XXXX refund by the federally mandated deadline of XX/XX/XXXX, as well as the contradictory and inconsistent statements provided by AES, PHEAA, the U.S. Department of Education ( DOE ), and XXXX regarding my loan type, payment history, and refund eligibility. Despite a Borrower Defense approval issued by the Department of Education on XX/XX/XXXX, AES confirmed on XX/XX/XXXX that my XXXX XXXX XXXX refund was not processed by the required deadline. Multiple agencies have since provided conflicting information, creating a circular loop with no resolution and preventing me from receiving the refund I am legally entitled to under the settlement. I. Background Borrower Defense Approval On XX/XX/XXXX, the U.S. Department of Education approved my Borrower Defense application under the XXXX XXXX XXXX settlement. Approval under XXXX requires : Discharge of qualifying loans Refund of all qualifying payments Refund issuance no later than XX/XX/XXXX No agency disputes that my claim was approved. II. XXXX & XXXX Contradictions No Federal Loan Records Found On XX/XX/XXXX, I received a XXXX response ( Case XXXX ) from the Department of Education. XXXX XXXX XXXX XXXX reported : No federal loan records exist for me in XXXX. DOE instructed me to contact PHEAA for records. This directly contradicts : DOEs Borrower Defense approval letter ( which presumes federal loans ) AES/PHEAAs repeated statements that my loans are federal student loans eligible for discharge This discrepancy indicates a failure in federal recordkeeping and servicer reporting that materially affects my refund rights. III. DOE Federal Student Aid No Assistance Provided On XX/XX/XXXX, I contacted the XXXX XXXX XXXX XXXX XXXX ( Case # XXXX ). DOE again referred me back to PHEAA and provided no clarification regarding : Missing XXXX records Refund status Loan classification inconsistencies This created a circular referral loop with no resolution. IV. AES/PHEAA Contradictory Statements On XX/XX/XXXX, AES Ombudsman Group representative XXXX stated : Loans are Federal Student Loans eligible for discharge. AES has records of payments made to AES. Payments made after XXXX approval would be refundable. AES is not a servicer for DOE. Refund eligibility must be confirmed by DOE. These statements contradict : XXXX findings of no federal records DOEs Borrower Defense approval AESs own statements that no refund is owed AES and PHEAA repeatedly redirected me to each other and to DOE without providing the required refund determination. V. Refund Compliance Call AES Confirmation of Missed Deadline On XX/XX/XXXX, during a documented call between XXXX XXXX, AES representative XXXX ( Rep ID XXXX ) confirmed : The XXXX XXXX XXXX refund was not processed No refund date exists No processing information exists The refund deadline was missed This is a direct violation of the XXXX XXXX XXXX settlement, which required all refunds to be issued by XX/XX/XXXX. VI. Circular Referrals & Failure to Provide Required Information Across multiple contacts with AES, PHEAA, DOE, and XXXX, I received : Contradictory statements about loan type Contradictory statements about payment history No refund date No refund determination No explanation for missing XXXX records No identification of qualifying payments No corrective action Each agency referred me to another, creating a closed loop with no resolution. VII. Summary of Violations The following compliance failures have occurred : Missed federal refund deadline ( confirmed by AES ). Contradictory loan classification between DOE, XXXX, XXXX, AES, and PHEAA. Failure to identify qualifying payments, as required under XXXX. Failure to provide refund processing information. Failure to maintain accurate federal loan records. Circular referrals preventing resolution. Failure to comply with the XXXXXXXX XXXX XXXXXXXX settlement terms. VIII. Requested Resolution I am requesting : Immediate confirmation of refund eligibility based on my Borrower Defense approval. Identification of all qualifying payments owed under the XXXX settlement. Issuance of the full refund, including all payments made to AES/PHEAA . Written explanation for : Why the refund was not processed by the XX/XX/XXXX deadline Why XXXX and XXXX show no federal loan records Why AES/PHEAA provided contradictory statements Corrective action to ensure compliance with the XXXX XXXX XXXX settlement .

Company response to consumer: Closed with explanation