Consumer complaint received 2026-02-11 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA
State: CA

Complaint narrative:
Subject : Complaint Regarding Improper Student Loan Origination and Failure of Pathrise to Honor Its Service Agreement I am filing a complaint against XXXXXXXX XXXX, and American Education Services ( American Education Services, AES, XXXX XXXX XXXX  ) concerning a {$20000.00} ( plus all accrued principle and interest ) education loan that I should not be responsible for. The loan was improperly originated, and the service it financed ( XXXX ) was never successfully honored under the terms I was assured. 
In XX/XX/XXXX, I enrolled as a XXXX XXXX after completing their free trial. I was told I would participate in a year-long career mentorship program with the understanding ( explicitly communicated by Pathrise ) that repayment was income based, only if I obtained a job through their program. If I did not secure employment by the end of the program, I would be off-boarded and would not owe repayment. This was the premise under which I agreed to proceed. 
As part of enrollment, XXXX routed me to apply for a {$20000.00} loan through XXXX, serviced by AES, which they represented as the financing mechanism for their educational program. I was assured repeatedly that if their program did not result in employment, XXXX would cancel or forgive the associated financial obligation. 
By the programs conclusion in XX/XX/XXXX, I had not obtained employment through XXXX. I was formally off-boarded, consistent with their policy that participants who are not placed do not owe repayment. However, soon after, I began receiving collection calls from XXXXAES. When I contacted XXXX in XX/XX/XXXX, they confirmed in writing that : I should not be responsible for repayment, and they would work directly with XXXX to cancel my loan. These communications are included in my attachments along with other evidence. 
XXXX leadership, including XXXX XXXX XXXX informed me that they had spoken with XXXX to cancel my loan. This communication occurred over a number of months following XX/XX/XXXX. However, as of XX/XX/XXXX, XXXX admitted they are undergoing foreclosure and have no assets to resolve my case. They also continued to claim that they were corresponding with XXXX. Yet when I contacted XXXX directly, they stated that XXXX never contacted them at all regarding my loan. This contradiction indicates that XXXX misrepresented their actions to me and failed to uphold their stated terms and obligations. I am aware of at least one similar case reported in XXXX, suggesting this may be part of a broader pattern. I also include documentation on that as well. 
Previously, my loan was managed by XXXX, and it was " deconverted '' before it was transferred to AES. I believe there is some back log in either company relaying or receiving this information, but it needs to be amended. In addition, I have submitted the tax and income information that XXXX requested but still have not heard back after several outreach attempts by phone and email. 
I recently discovered an additional and serious concern : XXXX does not appear on either of the following required registries for institutions eligible to receive educational financing, Bureau for Private Postsecondary Education ( BPPE ) through the California Department of Consumer Affairs and the Database of Accredited Postsecondary Institutions and Programs ( DAPIP ) with the U.S. Department of Education. Because XXXX is not a verified educational institution under state or federal standards, XXXX should not have been authorized to originate or disburse an educational loan to finance their program. This raises questions of improper loan origination and inadequate lender due diligence.

Company response to consumer: Closed with explanation