Date Received: 2023-02-17
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: PHEAA/AES has a " policy '' that seems to allow them to force the payment processing time up to 2 business days in order for them to actually Post the payment. This would not be an issue, except for the fact that PHEAA/AES reflects an account as still being past due even after the threshold of time has been surpassed for the specific Payment Effective Date. So, in essence, they are providing invalid information to borrowers because of their " delay '' of processing the payment. When the effective date has gone, PHEAA/AES makes no attempt to correct their database to reflect that the account is no longer in delinquency. This sort of refutes their stance that when an account is past due, they feel the need to send repetitive notices harassing the borrower until it is paid, but then they can not even process the payment in time in order for the account 's delinquency status to be updated on or directly after the effective payment date. Narrative : Payment that was delinquent as of XX/XX/2023 was scheduled to be paid for XX/XX/2023. The account still shows the account as being in a delinquent status even though the date of XX/XX/2023 has come and gone. While it may take their company 2 business days to post the payment, they don't have the right to continue to claim the account is past due, because I effected the payment for a day in the past. PHEAA is in breach of one or more statutes here. I believe they should re-visit these regulatory requirements and make sure they are not violating anything ... although I do believe in part, the above scenario as a technicality potentially is in violation. XXXX XXXX XXXX
Company Response:
State: PA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-02-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-17
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: I have been paying this student loan for years. Last year I reacached out to AES to inform them that due to financial difficulties I would like to request my due date chaged to the XXXX of each month since I was an educator and the date of my check was the XXXX of each month. The agent informed me that they can't do the XXXX but they was able to do the XXXX, I said perfect. I have made my payments on the XXXX of every month since the event as agreed. There were months where XXXX payments were made. AES has caused significant damage to my credit report by reporting my payments late and charging a late fee. The payments were never XXXX late but they illegally reported my account as late/deliquent. As a result of this I was unable to help my daughter obtain a parent plus loan to continue her education. This is unfair to me and my family as the damages are setting my family behind.
Company Response:
State: TX
Zip: 76179
Submitted Via: Web
Date Sent: 2023-02-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-16
Issue: False statements or representation
Subissue: Attempted to collect wrong amount
Consumer Complaint: fed loan service XXXX is the initial number i spoke with a man named XXXX XXXX who i gave personal info to he tried to take XXXX dollars off my debit card and according to nelnet they were trying to scam me. i had to reordera new debit card and cancel my old one. i had to change my password forfafsa website and according to XXXX i do not owe the XXXX dollars as i am XXXX and am working on an application with XXXX. XXXX XXXX direct number is XXXX. I called him back and asked him for an itemized statement of what i owe and instead of sending me one, he directed me to a different website. XXXX also mentioned another woman who he never named is handling " my account '' with them.
Company Response:
State: WI
Zip: 54902
Submitted Via: Web
Date Sent: 2023-03-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-16
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I consolidated two loans to recover from default during unemployment and was offered an income based repayment plan in XXXX. I consolidated XXXX XXXXXXXX XXXX and XXXX XXXX XXXX loans and my payment was XXXX XXXX. The next year I went tor recertify. I was making approximately $ XXXX. and they tried to make me pay $ XXXX. I asked, begged and pleaded for a lower payment and it was not granted. I even asked what would happen if I paid a lower amount thsn what was required. They said my only option was to pay that amount, so I had no choice but to default a second time. It took me until XXXX to make enough to afford that. I called and spoke to a rep named XXXX XXXX in XXXX XXXX. XXXX. She told me that she saw my call in the records where I asked for a reassessment of my monthly payment amount and that I qualified for a repayment amount less than $ XXXX. based on my income at the time. She helped me file a complaint with PHEAA, but no one has taken responsibility for the issue. I would have been able to afford that amount and would not have defaulted. This has caused me an addtional $ XXXX in collections and additional financial hardship. I would be wage garnished if not for the COVID moratorium, and no one cares that my financial life has been ruined as a result of me not being given the opportunity for a more reasonable payment that I qualified for. Now I am ineligible for XXXX XXXX. I have to consolidate again. My loan is even more expensive, and I can not qualify for rental or home ownership because of this. When I call to try and address my loans, people are rude and condescending. When I tried to get a better understanding on a recent call, I was told, " It doesn't matter if you don't like it. That's the way it is. '' I have lost all trust in this company and feel like I am being forced to negotiate with XXXX XXXX. When I submitted the complaint I was told it would be added to my PHEAA account notes but nothing would be done to rectify the issue.
Company Response:
State: MI
Zip: 48124
Submitted Via: Web
Date Sent: 2023-02-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-13
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I am filing this complaint on behalf of my wife. She has spent countless hours trying to resolve this issue since XX/XX/XXXX and works at a facility during the day that doesn't allow her to make or receive calls to even attempt to resolve this. If a consent form is needed, I'm happy to provide. In XX/XX/XXXX, my wife 's remaining balance of her federal student loan was forgiven and XXXX out through the PSLF waiver program. Her loan balance at the time of forgiveness was about {$25000.00}. The paperwork that she received from FedLoan Servicing in XX/XX/XXXX showed that about {$100000.00} was forgiven but when she received her overpayment refund check in XX/XX/XXXX, she was only provided about {$18000.00}. We were expecting about {$75000.00} ( the total amount forgiven minus the remaining balance ). Additional paperwork provided by FedLoan Servicing indicates that the 120th qualifying payment was received in XX/XX/XXXX and that we had made about 30 qualifying payments since then ( overpayments ), which, when going through the receipts, adds up to about {$75000.00}. When we followed-up with the Department of Education , they redirected us to OSLA ( her loan holder prior to it transferring to FedLoan Servicing for the PSLF waiver ) and they stated that only the standard principal and interest payments since XX/XX/XXXX qualified as overpayments and that any payments above that amount did not qualify ( in some months, we made payments substantially more than the standard amount in order to try to pay it off ASAP -- foregoing investing in our retirement, kid 's XXXX education plans or any much needed home repair and medical expenses ). That is in conflict with statements on the Student Aid website that state the following : -studentaid.gov : the amount forgiven will be the principal and interest that was due after you made your 120th qualifying payment. and Any payments made over 120 will be automatically refunded as long as those extra payments occurred after consolidation. '' XXXX XXXX XXXX - XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) states : ( d ) Forgiveness Amount. The Secretary forgives the **principal and accrued interest that remains on all eligible loans** for which loan forgiveness is requested by the borrower. The Secretary forgives this amount **after the borrower makes the 120 monthly qualifying payments** under paragraph ( c ) of this section. There should be no distinction in the type of overpayment made since the XXXX qualifying payment, only that " any payments made '' or any " principal and accrued interest that remains. '' We are now in limbo. We have a complaint that has been filed since early XX/XX/XXXX that was filed immediately after the wrong refund check amount was received. We have made several phone calls with the Department of Education and various loan servicers ( FedLoan and OSLA ) and receive conflicting information, including that once forgiveness is provided and the refund check submitted, that there is nothing that can be done -- especially given that FedLoan Servicing stopped handling as of XX/XX/XXXX. We have not cashed the {$18000.00} check and will hold until this is resolved. Note : my wife 's loan was not transferred to XXXX and FedLoan conveniently held the overpayment refund check until just before the mid XXXX contract termination ( remember, our forgiveness occurred in XXXX and it took FedLoan 5 months to process the overpayment refund! ).
Company Response:
State: MD
Zip: 21044
Submitted Via: Web
Date Sent: 2023-02-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-13
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I obtained a bar study loan in the amount of {$20000.00} from AES on XX/XX/XXXX with a fifteen year repayment plan. I have been paying on this loan each month for over 16 years. My payments are and have always been auto-drafted from my bank account by AES. According to AES ' records, I have paid {$11000.00} in interest and {$19000.00} in principal, yet AES says I still owe {$7900.00}. Additionally, the AES Tax Statement for the year XXXX shows I paid no interest, which isn't even what AES 's own records show. The Loan Details page on AES website states the repayment term is 48 months and the loan will be paid off on XX/XX/XXXX, four years from XXXX of XXXX AES appears to be refinancing the loan with every interest hike and unilaterally extending the repayment term. This allows AES to make more and more interest on this loan. Each time the interest rate increases, my monthly payment increases, so I shouldn't have a long repayment term as a result AES also appears to at the same time capitalizing interest onto the loan balance when I am making payments. I am not the only person I know dealing with fraudulent application of payments by AES. When you call, you can not get a person who can even understand what you are questioning.
Company Response:
State: TX
Zip: 77386
Submitted Via: Web
Date Sent: 2023-02-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-13
Issue: Dealing with your lender or servicer
Subissue: Keep getting calls about your loan
Consumer Complaint: As of XX/XX/3, PHEAA/AES has engaged in sending more than a combination of XXXX separate digital communications or physical communications either via US Postal Mail or email, separately since the payment went past due on XX/XX/2023. These communications only pertain to XXXX balance on the account. Instead of including multiple loan sequences in XXXX notification, PHEAA/AES has been sending the same notice about XXXX balance being past due but including separate loans in each communication. I have warned the company on many occasions to desist with this behavior, but they continue to deflect and deny any wrongdoing. I have issued XXXX final warning before I decide to file suit against their agency for extreme misconduct and a breach of my right to be free of harassment. There are no places within any contractual agreement that it states they have the free right to annoy consumers because their loan becomes past due nor does it state they have free reign to send as many notices as possible. This is a demand that only XXXX notice be sent whenever a payment becomes delinquent. The timing is of no consequence, however, only XXXX notice either electronic or physical ( XXXX separate to both cosigner and borrower ) should be necessary. If PHEAA believes they are bound by their policy, they need to engage their counsel on the rules of communication. These might be just some of the reasons behind the company 's demoralizing conduct and the reason why the Federal Government really has no interest in doing business with them from a prolonged standpoint. The Debt Collection Rule prohibits certain communications and attempts to communicate with a consumer in connection with the collection of a debt. For example, it generally prohibits communications with a consumer at inconvenient times or places, after a consumer has refused to pay, or after a consumer has requested a debt collector to cease communications. Additionally, it generally prohibits a debt collector from communicating or attempting to communicate with a consumer at the consumers workplace if the debt collector knows or has reason to know that the consumers employer prohibits the consumer from receiving such communications. Similarly, it generally prohibits communications with a consumer if the debt collector knows the consumer is represented by an attorney. 12 CFR 1006.6 ( b ) and ( c ). For purposes of these prohibitions, which are discussed in this Section 4, a consumer includes not only the natural person who is obligated or allegedly obligated to pay a debt but also that natural persons : ( 1 ) spouse ; ( 2 ) parent ( if the natural person is a minor ) ; ( 3 ) legal guardian; and ( 4 ) confirmed successor in interest.6 If the natural person who is obligated or allegedly obligated to pay the debt is deceased, the term consumer also includes the executor or administrator7 of the natural persons estate as well as the natural persons surviving spouse, surviving parents ( if the natural person was a minor ), and confirmed successor in interest. 12 CFR 1006.6 ( a ) ( 1 ) - ( 5 ) ; comments 1006.6 ( a ) ( 1 ) -1, ( a ) ( 2 ) -1, and ( a ) ( 4 ) -1. XXXX XXXX XXXX
Company Response:
State: PA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-02-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-14
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I made student loan payments to a company for XXXX full months. I have tried to reach the company looking for their website. The website is no longer available. I need tax information to get my taxes done. The name of the loan company that had my student loans is Fedloan.
Company Response:
State: MO
Zip: 647XX
Submitted Via: Web
Date Sent: 2023-02-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-12
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: XXXX was my server and Inputed my income base payment information. In to syetm wrong amd made my account 180 days late which posted to my credit.. I had to taken off credit because of information. was incorrect now with new server nelnet it's back on credit report and come to find out XXXX I have asked many times from nel if I could get this info and they will not give me hard copy or email of anything of my account... well fed never fixed my loan so now it says I wad late in 2018 which messes with my investment and my income repayment vecaue it restarts it is I didn't pay which I did becauw my payments then and still now are still XXXX.
Company Response:
State: WA
Zip: 98444
Submitted Via: Web
Date Sent: 2023-03-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-02-10
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: My federal student loans were previously serviced by FedLoan ( PHEAA ). When that contract expired, the full balance of my student loans was transferred to XXXX, the new designated student loan service provider for federal student loans. This transfer was completed in XXXX of 2022. The new XXXX information was added to my credit report as an active account. This part is accurate. But the former loan ( with FedLoan ) is still showing as active on my credit report. But this is inaccurate. That loan was closed when the balance was transferred in full to XXXX. This double-counting has the effect of " doubling '' my active student loan balance, which is not only inaccurate but crippling to my credit score and debt-to-income ratio. I am unable to secure credit for a home or vehicle purchase until this is resolved. I have found no current contact information for FedLoan to correct this error, and XXXX advised me to simply keep waiting for this to be corrected. I have filed disputes with the three credit bureaus, to no avail.
Company Response:
State: TX
Zip: 761XX
Submitted Via: Web
Date Sent: 2023-02-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A