Consumer complaint received 2025-05-26 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: College Ave Student Loan Servicing, LLC
State: IL

Complaint narrative:
On XX/XX/year> I cosigned for my son 's student loan in the amount of {$3500.00}. The name of the company is College Ave, which also happens to be a collection agency, according to the only number that they have available. Soon after my signing the loan the company began calling me for payment, which did not seem like any student loan that I had ever had before especially since both my son, and I were in school and the document that I signed had a large emblem stamped XXXX XXXX XXXX. However, since they informed that I only needed pay {$50.00}, I was not too concerned. The following week or so, College Ave called me again in request of another {$50.00}, to which I started asking questions to why they were requiring payment so soon while in school and how much the interest was. College Ave informed me that my interest was approximately 20 %, which astonished me since they had emailed me numerous letters claiming very low interest rates. I therefore requested to pay the loan off in full to which to my relief, they agreed to take by credit card payment over the phone. Unfortunately, College Ave called again a week or so later for another payment to which I informed them that there must be a mistake since I had paid off the loan in full. The agent informed me that there may have been a glitch in their system and that I could try paying again, which I again attempted. However, after another week or so, College Ave called asking for another payment. I then requested to speak to a supervisor who was extremely rude and informed me that my contract will not allow me to pay off my son 's loan in full because she claimed my contract stipulates that I can only pay the loan off slowly. After this, my son was able to download our contract, which proves that I can indeed pay the loan off in full. I then contacted college ave via text and chat so as to get everything in writing. College Ave informed me that they can not take payments by phone even though they called me multiple times to do so. In fact, I have proof that I a payment of {$50.00} to them by credit card but they dishonestly insist I sent a check even though there is nowhere to send a check. College Ave then insisted that I can only make payment by providing them my bank account information so that they can withdraw the money directly from my bank. However, I will not provide them this because the company has been repeatedly dishonest, vague, deceptive and predatory, and also because some of the figures on the contract are for some reason over {$50000.00}.

The bottom line is that College Ave preys upon busy students, has made it impossible for us to pay off the loan in full even though we have attempted to do so multiple times, their contract states we can pay it off in full, but they are purposely doing all they can to make my son 's loan interest accrue, which has now rose to {$3900.00} in ~one semester. 

I would like to take College Ave to court but I see the have an arbitration clause somewhere XXXX  but even that is vague since there is no address for arbitration or directions. Plus, we live in Illinois and are busy in school and work.

Company response to consumer: Closed with explanation