Consumer complaint received 2024-09-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: EdFinancial Services
State: PA

Complaint narrative:
I am a recipient of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Through this program, the XXXX makes quarterly payments towards my loans on my behalf. The XXXX payments are much larger than my monthly bill ( XXXX times larger ), so each quarterly payment puts me in paid ahead status for approximately XXXX to XXXX  months, which allows me to not make payments in the months between quarterly XXXX payments. I have been on this program for several years and had no issues when my loans were previously with XXXX. As of this spring, my loans were transferred to XXXX and they have misapplied these XXXX payments, made false claims, and then lost the payment. 

I received my welcome letter from XXXX on XX/XX/year> and notification of my recertification of my income driven repayment plan on XX/XX/year>. My beginning balance was {$54000.00} and my first monthly payment was due on XX/XX/year> in the amount of {$1200.00}. On XX/XX/year> the XXXX made a payment on my behalf in the amount of {$10000.00}. The payment was received by XXXX on XX/XX/year> and I provided documentation to the XXXX that the payment had reached my account on XX/XX/year>. At this time, my loan balance was {$44000.00}. The only issue was that the payment did not put me in paid-ahead status so my account stated that I had another payment due on XX/XX/year>. 

I reached out on XX/XX/year> to have the payment applied correctly so it would put me in paid ahead status. The XXXX representative told me that they did not have a record of how the payment was made but assured me that they had received it and my account had been credited. The representative put in a request to have the payment reapplied and told me Id hear back in XXXX  days. When I had not heard back and I had not been placed in paid ahead status I reached out again on XX/XX/year>. They XXXX representative stated that they could not provide a reason for why the payment hadnt been reapplied but said to reach back out in XXXX  days and that theyd have an answer. When my account still had not been updated I reached out again on XX/XX/year>. This time the representative stated that I cant be in paid ahead status when XXXX on an income driven repayment plan, which is incorrect. I had been in paid ahead status with an income driven repayment plan the entire time my loans were with XXXX. 

As Ive been trying to sort this out, I did not make an XXXX payment ( due XX/XX/year> ) because the payment was not expected, my wife and I are paying for XXXX  out of pocket, and we are unable to afford the payment at this time. Also, while this was going on, I had also reached out to the XXXX XXXX Ombudsman for support, opening a case on XX/XX/year> and providing updates throughout the process. After my contact with XXXX on XX/XX/year> and no response or assistance from the XXXX XXXX Ombudsman, I reached out to my congressional representative to have them advocate on my behalf. Soon after ( XX/XX/year> ), I received my first response about the case I had opened with the Ombudsman. The email came from XXXX customer service department rather than the Ombudsmans office. The email stated that my paid-ahead status was revoked when my income driven repayment plan was recertified. However, this is also a mistake or incorrect since my most recent payment was received on XX/XX/year>, after my recertification on XX/XX/year>. 

Today ( XX/XX/year> ), I received a call from XXXX stating that the payment made by the XXXX on XX/XX/year> had been reversed and that my account is now overdue in the amount of the original payment. However, my account summary on the XXXX website shows the balance after the payment was made on XX/XX/year> ( {$44000.00} ) and it shows my amount due as {$2400.00}, which would be correct since I didnt make the XXXX payment and have a XXXX payment due. The representative refused to believe that my online account displayed different information than her own and was adamant that I had reversed the payment. Additionally, every other contact Ive had with XXXX, they have recognized that the payment had been made. When I asked them if there is anyone else I can talk to explain my case, they put me on hold for XXXX minutes and then stated that no one was available. I did not request that the payment be reversed by the XXXX and they did not initiate the process. 

I am confident that XXXX lost track of my payment when they were trying to reapply it to my loan and are now claiming that I am at fault. I have documentation to support everything Ive stated.

Company response to consumer: Closed with explanation