Consumer complaint received 2016-04-25 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with my lender or servicer — Received bad information about my loan
Company: NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION (HESC)—
State: CA

Complaint narrative:
Summary of Claim Higher Education Services Corporation ( HESC ) : 1. failure to produce original loan agreements detailing terms of loans ; 2. verbally informed me that interest rate on 3 Parent PLUS loans was 3.13 % but failed produce written confirmation 3. demonstrated neglect in processing Administrative Review 4. continue to destroy my FICO score - a contributing factor to current homelessness 5. create continued stress and chaos in my life, adversely affecting my well-being in every aspect of my life. 

Terms of the XXXX Parent PLUS loans : total amt. borrowed {$26000.00} ; 120 payments ; stated interest rate ( s ) per phone conversation with XXXX XXXX per phone conversation in XX/XX/XXXX or XX/XX/XXXX is 3.13 %. 

In XX/XX/XXXX, I took out the first of XXXX Parent PLUS loans. After the third loan was funded and coupon books issued, I wrote one monthly checkfor all XXXX loans and included the three monthly payment coupons with the check. This procedure worked when paying for XXXX loans. With the third loan payment, XXXX XXXX began applying the payment to XXXX or XXXX loan ( s ) in spite of the three payment coupons. Their explanation : they had no way of knowing which loan I was paying and claimed the right to apply payments however they saw fit. To avoid late fees and the threatened misinformation to the credit bureaus, thereby adversely affecting my XXXX FICO score, I sought a better solution. Their recommendation : consolidation of my XXXX Parent PLUS loans. This was predatory and probably fraudulent for the following reasons : a lender/servicer fabricated need for loan consolidation ; undisclosed terms and conditions of loans e.g. doubling the # of payments from XXXX to XXXX ; incorrect beginning balance for the consolidated loan ; ambiguity as to interest rates on the Parent PLUS loans thereby allowing XXXX XXXX to covertly convert an interest rate of 3.13 % to 8.25 %. 

I would not have knowingly agreed to a loan that increased the interest rate from 3.13 % or even 6.54 % ( another amount referenced in a communication with XXXX XXXX ) to 8.25 %, nor would I have knowingly agreed to doubling the number of payments. Such behavior would have been inconsistent with my financial and business skills. 

Between XX/XX/XXXX and XX/XX/XXXX, I paid XXXX XXXX {$32000.00}, without missing a single scheduled payment. As you can see, I repaid all the money borrowed plus {$6200.00} in interest. XX/XX/XXXX, I refused to give XXXX XXXX more money. XX/XX/XXXX, on the advise of a bankruptcy attorney, I made one payment to XXXX XXXX and agreed to a deferment so that I could file for bankruptcy on other debt. I believe that was bad advise but did so under duress. ( My financial crisis came as a result of having lost $ XXXX on a real estate sale when the real estate market collapsed. This amount represents my interest in the transaction, not its total value. ) The student loan defaulted to the loan guarantor, HESC, in XXXX XXXX. I requested an Administrative Review. When I called to check on the status of the Review, I was informed that student loans can not be discharged in bankruptcy therefore I still owe the money. Apparently, whoever looked at my Request for Administrative Review failed to even attempt to understand my Request by reading the XXXX pages of documentation I submitted. When I asked to speak to the person who had Reviewed my case, I was told that that would not be possible. 
Note : The only accurate info on the XXXX XXXX Payment History is the amounts borrowed on the XXXX initial Parent PLUS loans and the amounts of my payments except for the 2 payments they did not record. 
I believe that neither XXXX nor HESC have acted honorably in this matter.

Company response to consumer: Closed with explanation