Consumer complaint received 2025-01-23 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA

Complaint narrative:
To Whom It May Concern, I am writing to formally lodge a complaint against AES Success regarding the mismanagement of my private student loan and a series of administrative errors that have caused me undue stress, financial harm, and confusion. Below, I outline the key facts and issues pertaining to my complaint : Loan Background and Deferment Request : I took out a private student loan with AES XXXX in XXXX for {$20000.00}. 
Between XXXX and XXXX, I made payments totalling over {$14000.00}, reducing the outstanding balance to {$5800.00}. 
During the XXXX period, the loan was in deferment due to the pandemic and regulations introduced by the XXXX XXXX. 
On XXXX XX/XX/XXXX, I submitted a deferment/forbearance request to AES to XXXX to an Income-Driven Repayment ( IDR ) plan based on affordability. 

Improper Notice Sent to Unregistered Address : On XXXX XX/XX/XXXX, AES sent a demand letter to my mother 's address in New Jersey, requiring payment of the full principal balance by XXXX XX/XX/XXXX. 
This address was not listed as a registered address on my account. My contact information on file included my XXXX address, email address, and mobile number, as I have resided in the XXXX since taking out the loan in XXXX. 
Additionally, I was enrolled in paperless communications. 
The letter sent to my mother 's address was never relayed to me due to her XXXX and inability to recognize its importance. As a result, I was unaware of this payment demand. 

Loan Default and Subsequent Mismanagement : My loan defaulted without my knowledge, and I only discovered this when I logged into my online account and saw the default notice. 
Upon contacting AES by phone, I was informed I had 75 days to request reinstatement by making a payment of {$1200.00}. 
I made this payment on XXXX XX/XX/XXXX. 
Unbeknownst to me, AES had already transferred the debt to the guarantor,XX/XX/XXXX XXXX XXXX, on XXXX XX/XX/XXXX, in the amount of {$5800.00}. 

Payment Misallocation and Lack of Transparency : Despite following AESs instructions, my payment of {$1200.00} on XXXX XX/XX/XXXX was applied to an account with a XXXX balance. 
AES refunded this payment to XX/XX/XXXX XXXX on XXXX XX/XX/XXXX- but failed to provide me with adequate documentation or a proof-of-transaction statement to trace the payment, resulting in this payment being UNAPPLIED to my outstanding debt balance. 
On XXXX XX/XX/XXXX, I received a notice from XXXX and XXXX XXXX XXXX, attempting to collect {$5800.00} for the same debt. 

Impact of AESs Actions : AES failed to notify me through proper channels ( email or phone ) about the impending default, despite having my correct contact information on file. 
AES should have refunded my payment to myself ( not XX/XX/XXXX XXXX ) when it became evident that the account had a XXXX balance, and the loan was not being taken back into servicing. 
The lack of transparency regarding the forwarded payment has resulted in significant distress, financial uncertainty, and unresolved debt collection activity.

Company response to consumer: Closed with explanation