Date Received: 2021-07-20
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: FedLoan Servicing ( aka PHEAA ) has repeatedly caused delays in processing my loans which lead to me being unable to make a qualifying payment under the Public Service Loan Forgiveness program. Essentially my claim is that repeated administrative errors on FedLoan 's part have deprived me of 4 qualifying payments, despite the fact that my employments has been certified as PSLF-qualifying from an unbroken period from XX/XX/XXXX until XX/XX/XXXX. My claims break down into two categories : 1 ) I should be permitted to make a " catch-up '' PSLF-qualfying payment of {$240.00} for XX/XX/XXXX and be given credit for a " catch-up '' qualifying payment for XX/XX/XXXX which I've already been permitted to pay. PSLF failed to notify me of the ability to do so during a window that they permitted earlier and has since recognized that I deserved to make a qualifying payment for one and not the other. FedLoan failed to properly transfer my paperwork when I transferred loans from XXXX XXXX in XXXX. During that time, they were unable to bill me and instead put me into forbearance for XX/XX/XXXX. As documented in XX/XX/XXXX, I was no longer in forbearance, but instead " a payment was not due. '' FedLoan later admitted their error in a letter that I have now obtained, dated XX/XX/XXXX. ( See Ex. Q. ) In that letter, I was told to provide " catch-up '' payments by XX/XX/XXXX and they would qualify. Unfortunately, I never received that letter and only got a copy in XXXX when I began disputing these issues with FedLoan. When FedLoan claims they sent the letter ( XX/XX/XXXX XXXX I was in the military, so perhaps I missed it because of that, but regardless, I never received that letter. FedLoan also never called me to confirm receipt or advise me of this information, nor did they advise me of this in many calls I've placed trying to get this fixed. Therefore, the deadline passed without me ever becoming aware of the fact that FedLoan 's issues in transferring my loans lead to me missing two qualifying payments. Given that FedLoan was able to permit me to make a " catch-up '' payment after the fact and admitted the fault on their part, I should be able to make those same catch-up payments now that I am aware of the ability to do so. 2 ) I should be permitted to make two " catch-up '' PSLF-qualfying for XX/XX/XXXX, and XX/XX/XXXX, as I was improperly denied credit due to a repeated XXXX cent billing error on FedLoan 's part that they failed to catch, never explained, after which they forced me into forbearance : I requested to be moved from IBR to PAYE in XXXX of XXXX. I received confirmation of this request on XX/XX/XXXX ( see Ex. A ). In that XX/XX/XXXX letter, I was told that I would be put on either the standard plan or a reduced payment forbearance plan. I was told " to remit payment no later than 15 days after the due date '' and that, if I did so, I would then be switched over to the new requested repayment plan ( PAYE ). I then requested a reduced payment forbearance for my XX/XX/XXXX plan, which was confirmed in a letter dated XX/XX/XXXX. ( see Ex. C ) That letter stated that I needed to make a reduced forbearance payment and, although I did not see it at the time, it said the payment should be {$5.00}. It also stated that FedLoan would " continue to send a monthly notification reminding [ me ] to make [ my payment ]. However, in that subsequent notification, my monthly bill of XX/XX/XXXX, XXXX then stated that the amount due was {$4.00}. ( See exhibit D ). I can't recall exactly what happened, but for some reason my account did not direct debit on XX/XX/XXXX even though I had not requested a suspension ( perhaps this happens automatically ). When I called on XX/XX/XXXX, I was told simply to make the reduced payment forbearance listed on my bill, at which point I could transfer out of my old IBR payment. ( See Ex. P, XXXX Call History entry for XX/XX/XXXX ). At no point was it made clear that I should ignore the amount due on my bill, and instead go off of another number that was listed on a different letter. Accordingly, on the same day, I paid what FedLoan had billed me : {$4.00} ( See Ex. E, pg 5, noting {$4.00} payment on XX/XX/XXXX ). Given that this was within 15 days of the payment due date, and was the amount billed, this should have completed my transition from IBR to PAYE per the instructions in Exhibit A and I should have been able to make qualifying payments on XX/XX/XXXX and XX/XX/XXXX under PAYE. Yet on XX/XX/XXXX, I received another FedLoan bill, once again asking me to pay {$4.00}, this time by XX/XX/XXXX. ( See Ex. F ). It acknowledged that I had just paid on XX/XX/XXXX but for some reason did not count that as qualifying for the reduced payment forbearance, even though it was the same amount now being billed. The very next day, I received another letter, telling me that, rather than paying {$4.00}, I now owed {$2600.00}. ( See Ex. G ). Panicking after seeing two different numbers from FedLoan in two days, and not wanting to have {$2600.00} autodebited from my account for no discernible reason, I suspended direct debit the same day. ( See Ex. H ). I also called FedLoan again on XX/XX/XXXX and was advised once again to make an IBR opt-out payment and to " wait to receive the reduced bill prior to making the payment. '' So once again, FedLoan told me explicitly to base my payment on the reduced bill, which told me to pay {$4.00}. Based on that phone call, I manually made a payment on XX/XX/XXXX, of the amount once again listed on my bill - {$4.00}. ( See Ex. E, p. 5 ). I called FedLoan on XX/XX/XXXX and " was advised that since an additional payment was made, the IBR opt out can proceed. '' ( See Ex. P, call history ). So although I should have been able to get credit for XX/XX/XXXX because I paid the required XX/XX/XXXX amount within 15 days, I was explicitly advised over the phone that I would begin switching over after XX/XX/XXXX into PAYE and should definitely have gotten credit for XX/XX/XXXX. Instead, on XX/XX/XXXX, I received a notification once again that my account would be autodebited the standard amount of {$2600.00} ( see Ex. I ) and, even more troublingly, was sent a bill on XX/XX/XXXX telling me that I had failed to make a previous standard payment AND owed a new standard payment, so the bill was now for {$5200.00} ( see Ex. J ). On XX/XX/XXXX, I was finally approved for PAYE, but inexplicably, my first XXXX payment was not effective until XX/XX/XXXX. ( See Ex. K ). The same day I was approved, I also received a delinquency notice telling me I still owed {$2600.00} from XX/XX/XXXX. ( See Ex. L ). Panicking, I called FedLoan, who once again confirmed that the PAYE change was completed, but could not explain why I would have owed {$2600.00} for either XXXX or XXXX since I had been approved for reduced payment forbearance and had now made qualifying payments TWICE. Not once did they recognize the billing error that had led to this issue, and they said my options were either to pay more than {$5000.00} or be put into forbearance. Panicking and frustrated, I requested to be put into forbearance until XXXX, since I could not afford to pay {$5200.00}. ( See Ex. O ). I should never have been put in forbearance. While I recognize that I could never have gotten credit for XX/XX/XXXX, since I would have to make a reduced payment forbearance and that should have qualified, I paid the amount FedLoan billed me within 15 days of XX/XX/XXXX. I then paid it AGAIN in advance of XX/XX/XXXX. I'm guessing the issue is that FedLoan 's bill was for the incorrect amount, since now I see from the other letters that {$5.00} was required and not {$4.00}, but over two billing cycles and multiple calls, no one from FedLoan ever told me the problem could be solved by simply paying an additional cent. In fact, to the contrary, I was advised by FedLoan in XXXX that I had successfully made a payment and would be transferred to the new payment plan. Even after I was told my PAYE plan was approved, I was still being billed incorrectly. I should have been able to make PAYE payments for XX/XX/XXXX and XX/XX/XXXX and should have the opportunity to do so as " catch-up '' payments now. I have contacted the PHEAA Office of Consumer Advocacy, which resulted in them granting me the catch-up payment for XX/XX/XXXX but denying the rest, despite the fact that I was unable to make a XX/XX/XXXX payment under the exact same circumstances. ( They also had previously denied that I was eligible to make a catch-up payment for XX/XX/XXXX in an earlier CFPB complaint, so they are also internally inconsistent in that manner. ) I also have a case with the US Department of Education Federal Student Aid Ombudsman on second level appeal - they have been trying to get an answer from PHEAA/FedLoan for more than six months but instead, FedLoan has apparently refused to answer them ( according to their e-mails, the first and last of which I am attaching ).
Company Response:
State: KY
Zip: 40503
Submitted Via: Web
Date Sent: 2021-07-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-20
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/2021, I sent a letter certified receipt along with notarized affidavit to Fed Loan Loan Servicing XXXX. XXXX XXXX, PA XXXX Account Number : XXXX Tell them the following. I would like to make arrangements to settle the above referenced matter. Please provide me with your statement of the amount owing as of XX/XX/2021. Together with your assurance that you will accept payment in direct and immediate exchange for the original instrument of indebtedness in its original form. Thank you very much. I told them if I do not get this item by XX/XX/2021 I want all student loans reporting showing on all credit bureaus to be removed immediately to include XXXX XXXX XXXX, XXXX, XXXX, XXXX XXXX, XXXX and XXXX XXXX XXXX
Company Response:
State: FL
Zip: 32819
Submitted Via: Web
Date Sent: 2021-07-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-20
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I received a letter from Fedloan Servicing dated XX/XX/XXXX showing that my student loans have been paid off in full. Their website shows as of today XX/XX/XXXX that I owe {$270.00}. This is upsetting seeing that the company has already sent me a formal letter detailing how I have paid off my accounts in full.
Company Response:
State: CA
Zip: 92101
Submitted Via: Web
Date Sent: 2021-07-20
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-19
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I have six payments that are " pending a manual review. '' These payments were made from XX/XX/XXXX to XX/XX/XXXX. MyFedLoans has been unable to certify these payments after repeated requests over the past two years. They just told me the current case was opened XX/XX/XXXX. I am close to applying for PSLF and these six payments will prevent me from applying for forgiveness on my proper date. These were eligible payments under my previous servicer, XXXX.
Company Response:
State: DC
Zip: 20002
Submitted Via: Web
Date Sent: 2021-07-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-19
Issue: Attempts to collect debt not owed
Subissue: Debt is not yours
Consumer Complaint: XXXX XXXX, XXXX, and XXXX have $ XXXX Government Student Loan Reporting on my credit report which is not true and misrepresentation of Federal Truth In Billing Act and FTC law. Proof attached for wrongful recording on my credit report attached. All my government student loan current.
Company Response:
State: NY
Zip: 10305
Submitted Via: Web
Date Sent: 2021-07-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-19
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: Fedloan has consistently been inaccurate about my student loans/XXXX and XXXX since XXXX. They seem to have ignored the fact that I have been working for the State of Nebraska government since XXXX and have never left. They didn't qualify my employment for numerous years since I graduate in XXXX. They have also been incredibly inconsistent with payments amounts when my salary has rarely changed more than a few dollars an hour over these years. All of XXXX appears to be labeled as a not certified employer, XXXX shows only a few payments when I paid every month. XXXX seems to be missing entirely from their record of my payments. XXXX only shows half of the year. XXXX and XXXX is shockingly all accounted for BUT not all the months show up as qualifying payments that go for my XXXX. They even try to say that I had multiple years on forbearance and this is simply not true. Now they are showing AGAIN that my employer is not certified yet, I sent in the form in XXXX and they still haven't gotten back to me on that and it's almost XXXX. I truly feel that with my payments and being enrolled in the XXXX since XXXX, I should almost be done with the program yet they have my account listed as having only 38 payments!!! that is completely absurd and U truly feel as though I'm being ripped off and being stolen from and taken advantage of. Now with XXXX approaching and still not hearing anything from them after repeated attempts to contact them about my account, I feel I have had enough and that it's time to have the authorities look into this situation. I have a huge amount of student debt that just gets higher every single year. I'll never be able to pay it off or retire if they are allowed to continue this type of predatory business practice with me and my account. Please help me with this.
Company Response:
State: NE
Zip: 685XX
Submitted Via: Web
Date Sent: 2021-07-19
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-19
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Please see the documents included for more specific details. Because of my bad previous experience years ago, when a Perkins Loan I had was transferred to the U.S. Department of Education was incorrectly reported as default, past due, delinquent, no matter all the evidence showed that was not true at all, but no matter all the evidence I submitted even using here the C.F.P.B. the fact is that error, or maybe is best to call it horror, was never fixed correctly on my credit report, knowing the catastrophic damage an error like this provokes in anyone credit reports, and this error or horror I experienced was the same problem many thousands of students experienced back then unfairly. This time, a mistake, or even a computer or Internet pro hack, or something worse, no matter all the evidence shows is not true, shows a payment I made to my American Education Services XXXX last XX/XX/2021, as to be paid 7 days later, so it appears as past due 3 days, or delinquent, until is fully debited within a couple of days? What if something goes wrong and my accounts with AES are reported past due incorrectly to the 3 credit bureaus? I can't allow that to happen again. Today is XX/XX/2021, but my record shows I never submit a payment to AES in that manner, but that I always pay to be debited immediately if that was possible in this case it was submitted last XX/XX/2021, to be paid that same day if possible and I submitted hours ago the evidence showing AES that the funds are available in my account waiting for the AES debit since XX/XX/2021 there was no reason for me to let an incorrect date equal to a 7 days delay at all as the included uploaded documents clearly show, including my chat XXXX, from AES Live Chat Customer Service of today just minutes ago, included here also so the C.F.P.B. and AES could see why I am worried. The evidence I am accumulating here at the C.F.P.B.is showing a pattern not only showing I document everything with every piece of evidence I find, but also, that the possibility that people with key positions anywhere, could also be sponsoring discriminatory practices against us just because they do not like people who speak XXXX, are described as XXXX, or because we come from an Island they do not recognize no matter we are citizens, they do not care, if others are not citizens makes no difference for them either. XXXX, is the only credit bureau sending us surveys in which they recognize this problem, when they ask us several questions about discrimination in their surveys. But, what about the other 2 main credit bureaus? Just in case the evidence I uploaded hours ago through the American Education Services website, showing the same I am including here falls in the hands of someone sponsoring discriminatory practices, and simply takes advantage of this mistake to incorrectly report my account as delinquent as mentioned during the chat by XXXX, no matter she apologized several times for this. I want to have a clear record here just in case something worse happens again. I can't let that happen, no matter their Live Chat Representative XXXX assured me a Supervisor will take a look at my complaint.
Company Response:
State: PR
Zip: 00949
Submitted Via: Web
Date Sent: 2021-07-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-18
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: when covid 19 affected everyone. i was laid off i always pay my bills on time but the creditor didn't want to negotiate. so ive been trying my hardest to find a better way to get to them cause its showing late payments on my report.
Company Response:
State: CA
Zip: 90706
Submitted Via: Web
Date Sent: 2021-07-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-17
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: My educational loans are showing closed or transfered when they're not on the reports.
Company Response:
State: LA
Zip: 710XX
Submitted Via: Web
Date Sent: 2021-07-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2021-07-17
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I want to put on record the forced consolidation of student loans by fedloan. I struggle with XXXX XXXX, despite XXXX serious diagnosis I have beat the odds with a lot of hard work and caring professionals. In XXXX I was partially hospitalized and went on XXXX XXXX. I couldnt make the payments and I called them. They refused to take a lower amount. They said they would report my payments late if I couldnt pay the monthly amount. In other words would rather take nothing then something. I sent what I could but instead of applying it to past due amount they broke the payment into pieces. They put different amounts to different loans and thereby forced the account to be late. My credit plummeted. In an effort to stop the bleeding fedloan told me I can consolidate the loans. I had been fighting this option because some of loans dated back to XXXX when interest rates were low. I asked to pay a different amount it was not an option. Knowing my credit will continue to suffer I chose consolidation. Knowing I couldnt pay at the time I put it in forbearance where the XXXX style interest began. I have all the correspondence. Thru out my time with fedloan they applied payments in pieces forced me into consolidation and forbearance. I complained and went to student loan ombudsman and no one listened. NOW it is discovered I am far from the only one this happened to.
Company Response:
State: NJ
Zip: 08902
Submitted Via: Web
Date Sent: 2021-07-17
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A