Date Received: 2020-01-30
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Hello, I thought I was in contact with the FedLoan Student Loan Repayment Program. It turned out to be a third party company that was not providing the services I was paying for. My money was not being paid to my loans they were taking it. I began the program XX/XX/2019. My payment was {$200.00} per month for 6 months. I was notified in XX/XX/2019 that the company I was going through was getting sued by you. I'm looking for information for the next steps to take in trying to get the money I gave to them refunded.
Company Response:
State: OK
Zip: 731XX
Submitted Via: Web
Date Sent: 2020-01-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-30
Issue: Took or threatened to take negative or legal action
Subissue: Collected or attempted to collect exempt funds
Consumer Complaint: I received letters from the debt collector XXXX XXXX XXXX threaten to garnish wage this is absolutely not fair because we are willing to pay the student loan balance but the loan balance must be correct and must be agreed between lender and borrower. Since I do not agree with a loan term even I already cancelled but the loan service ignored my request because of this I stopped making payment to the loan service due to wrong information of loan ; it should not 'consolidation '. Loan service transferred loan to collection agency and they demand borrower to pay the collection fees this is not right. I have attached documents for your review.
Company Response:
State: MA
Zip: 01824
Submitted Via: Web
Date Sent: 2020-01-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-30
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Complaint being reinstated since American Education Services ( AES ) does not believe the information I have provided. I am including an example of their customer service representatives interaction. I believe that AES is basically calling me a liar since they denied all the information I detailed in my complaint. I have been removed from American Education Services ( AES ) borrower benefit program ( BBP ) that reduces interest rates by 1 % after 36 months of on time full payments unfairly and due to AES steerring me away from their automatic direct debit payment program. I was removed from the program due to a payment that was a few weeks late and a payment that was {$94.00} short of the payment since I was looking at an old bill. Had I been enrolled in their automatic debit payment program like I wanted to I would not have missed these payments. I was steered away from their automatic debit payments due to incorrect and misleading information. It is my belief that AES will not let customers that are trying to get into their BBP set up automatic debit payments since this will make it mush easier for them to qualify for lower interest rate. I was told in XX/XX/XXXXthat I could not set up automatic direct debit program to pay more than the minimum payment. I wanted to pay more to pay my loans off sooner so I did not set up automatic direct debit payments at that time. I again questioned automatic direct debit payments on XX/XX/XXXX and was told that " Unfortunately the lender does not allow a paid ahead status '' and I could only make minimum payments using automatic direct debit payments and would have to send two bills to make extra or over payments. Since then I have found out that I can pay any amount over the minimum payment. AES continually gave me incorrect and misleading information. I have e-mailed AES customer service over 6 times the past 3 months with out any reply or a response about the incorrect information I was given. The continue to not take responsibility for their actions in this circumstance and have denied my request to honor the 1 % interest rate reduction I should be qualified for since XX/XX/XXXXthat has resulted in 10 years of AES collecting higher interest rates from me unfairly.
Company Response:
State: PA
Zip: 15101
Submitted Via: Web
Date Sent: 2020-01-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-29
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: A student loan was taken out in XXXX of XXXX for an XXXX add on degree. -Graduated in summer XXXX -went back to school in Spring XXXX -graduated in XX/XX/XXXX The total amount borrowed was {$34000.00} According to my records/bank statements and payment history, we have paid {$64000.00} towards the loan. {$17000.00} was forgiven with teacher loan forgiveness program. Payments have been made on the original loans more then 10 years. {$6800.00} is still owed. Loan has been with 3-4 different loan companies XX/XX/XXXX-first call with concerns XX/XX/XXXX-requested an ombudsman which was not very helpful. He was able to show that a {$6000.00} payment that was supposed to be credited was charged interest for over 10 years. Every time they sent a bill we paid it. Beginning in XXXX it was automatically drafted. We would get notified when the amounts changed but were still automatically drafted. XX/XX/XXXX submitted a review-was not notified of results Every time we submitted something it would be review. Takes anywhere between 90 days -2 years. Submitted loan forgiveness application XX/XX/XXXX, They said we only had 27 payments on loans that were taken out in XXXX-if that were the case we would have been in collections. Resubmitted for review. Resubmitted application in XX/XX/XXXX. XX/XX/XXXX was denied because they said they needed more info. When talking to XXXX # XXXX she could see all the info they said they were missing so she resubmitted it. XX/XX/XXXX was told to submit another application to look at loan payments. XX/XX/XXXX said the loan showed interest was added because it was not paid off in 10 years. XX/XX/XXXX, XXXX-heard from PSLF person. Payments were still wrong. I started going date by date. He had missing dates. I was told to upload bank statements from XXXX which i did. Requested payment history again. Payment history showed that payments I submitted bank statements for. XX/XX/XXXX, XXXX-called to get update to see if payments were applied. I was told it was still in review and there was not a time line. It could take up to 2 years. I have the records for all the payments. This loan should be paid off by now. One of the loan companies XXXX has had cases brought against them for not applying loan payments. This is ridiculous that these reviews take this long.
Company Response:
State: GA
Zip: 30504
Submitted Via: Web
Date Sent: 2020-01-29
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-29
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: Fed loan serving reporting incorrectly period the representative told me it would be removed and isn't. I will sue this company for not reporting correctly. Remove payments to never late or ill sue!!!
Company Response:
State: PA
Zip: 19130
Submitted Via: Web
Date Sent: 2020-01-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-29
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I applied for a Direct Parent Plus federal student loan to cover my son 's XXXX tuition expenses for the Fall XXXX and Spring XXXX semesters. The loan was disclosures indicated a fixed rate of 7.21 % with a principal of {$63000.00}, and an expected payoff date of XX/XX/XXXX ( a 10 year repayment period ). The loan funds were disbursed directly to my son 's university, by FedLoan Servicing : {$31000.00} on XX/XX/XXXX and {$31000.00} on XX/XX/XXXX. See enclosed documentation for supporting information downloaded from MyFedLoan. The loan has always been on a " standard '' repayment plan ; no forbearance or any changes to payment terms. I started making monthly payments on XX/XX/XXXX. All my payments to date have been for an amount greater than the required minimum payment of {$760.00}. As you'll see in the supporting documentation, I typically paid $ 800-1,000 each month. I only made one payment for the minimum required amount, the first payment on XX/XX/XXXX. I never missed a payment nor did I ever make a payment for less than the required minimum payment amount. Last month, on XX/XX/XXXX, I made a large payment for {$13000.00} in an effort to reduce my principal and accelerate repayment. My expectation was that the reduced principal, {$16000.00} as of today ( XX/XX/XXXX ), would translate into either lower required minimum monthly payments or an earlier payoff date. I was surprised to find out, when I called FedLoan on XX/XX/XXXX, that my monthly minimum required payment and the payoff date remained the same! And, the service representative indicated that I was now in a " pay ahead '' status. She explained that my additional payments, including the large one on XX/XX/XXXX, were applied to future payments. So, I asked why that would not mean that the loan would be paid off sooner than XX/XX/XXXX. She explained that I still had to make over 30 payments, an additional {$22000.00}. I have already paid a total of {$65000.00}. If I make those additional 30 payments, I will have paid {$88000.00} ( or more, as I do not trust FedLoan and it's calculations ). I do not understand how a FIXED loan on {$63000.00} turns into a total paid of {$88000.00} when this 10 year loan is being paid ahead of schedule by a matter of years. The interest amount paid on this loan should have been {$4500.00}, not {$22000.00} or more! That's more than 35 % interest. FedLoan did ( or would ) not provide me a total expected payment amount at the end of the loan. It was not provided to me over the phone, not on their website, and not in their disclosures in the original promissory note. Nowhere along the path of this loan experience was I informed, as the borrowing consumer financially responsible for repayment, that I would be paying more than {$22000.00} over and above the principal. FedLoan uses a daily interest calculation, but nowhere do they disclose the significant financial cost and impact it has on the consumer 's repayment obligation. In fact, indicating it's a fixed rate loan is deceptive without additional disclosures showing at least the standard repayment scenario and what the total cost of the loan will be to the consumer. The recent payment history I downloaded from MyFedLoan shows that I have already paid {$18000.00} in interest and {$47000.00} in principal. I have a {$16000.00} balance remaining on the loan. If I paid that off today, I would have paid a total of {$81000.00} ( 28 % more than the original loan amount ). Does that seem right on a loan advertised at 7.21 % fixed rate? If I continue making payments until what FedLoan claims to still be my payoff date ( XX/XX/XXXX ), how much total interest will I have paid? At this rate, I will likely end up paying almost 50 % interest, or close to double the original loan amount. This is an outrage, outright robbery of the consumer through deceptive practices. As a consumer, I would never have taken this loan had it been clearly disclosed to me how the presumably fixed interest rate would be applied by showing me what I would be paying in total over the life of the loan. These disclosures are clear on credit card statements, they are clear on mortgage origination documents, so, why are they not required and clear on Federal Student loans owned by the U.S. Department of Education? Why does FedLoan collect and retain funds from borrowers that are excessively higher than the rates advertised for the loan? How do I get my money back?
Company Response:
State: MA
Zip: 020XX
Submitted Via: Web
Date Sent: 2020-01-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-29
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Hello, I am in the public service loan forgiveness program since XX/XX/XXXX and submit my re certification paper work each year. I had 57 documented qualifying payments as of XX/XX/XXXX, however, sometime around XX/XX/XXXX my qualifying payment count has dropped to zero, I have called them several times to have this matter addressed and they are absolutely unable to correct the issue in a timely manner. We are more than 6 months from when I previously inquired about this. They state they are still in the process of reviewing payments and there is no time line and they can take as long as they want. I request your assistance as this is one of the worst experiences I have had.
Company Response:
State: NY
Zip: 117XX
Submitted Via: Web
Date Sent: 2020-01-29
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-29
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: I was enrolled full-time in college from XX/XX/XXXX to XX/XX/XXXX and this student loan was supposed to be deferred. I had requested deferment and had documentation that I was enrolled full time for Fall semester after receiving my XXXX in XX/XX/XXXX. They had received my graduation notification in XX/XX/XXXX and took me off deferment without verifying that I was still enrolled in classes starting XX/XX/XXXX. I emailed XX/XX/XXXX and told them there was a mistake and I was supposed to be in deferment still and got an email that they would process my request. In XX/XX/XXXX I saw that XXXX took over my loans with American Education Services and checked my credit report to find a bad credit write-off from AES. I tried to get them to remove the bad credit off my credit report when contacting them XX/XX/XXXX but nothing was done. I sent them proof that I had sent documentation and request for deferment and again they just said they received my information and still have done nothing to resolve this.
Company Response:
State: NY
Zip: 140XX
Submitted Via: Web
Date Sent: 2020-01-29
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-28
Issue: Struggling to repay your loan
Subissue: Can't get other flexible options for repaying your loan
Consumer Complaint: I have been applying for IDR plan for months and getting denied. I have a household size XXXX, and my husband and I are both unemployed and they are trying to make me pay {$470.00} a month that I can not afford. Ive submitted documentation several times and they have yet to lower my payments and deny me. They have predatory lending practices and FedLoan Servicing Inc. Ive gone into foreclosure and had my vehicle repossessed and submitted documentation they say they never received and still wont lower payments.
Company Response:
State: NY
Zip: 144XX
Submitted Via: Web
Date Sent: 2020-01-28
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-01-28
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I have been dealing with FedLoan Servicing on two issues : 1. There are several payments that I have made that qualify towards my 120 Public Service Repayment Plan, but FedLoan Servicing complicates the process with inaccurate information and slow processing. I have been fighting this for roughly two years and each time I contact a customer service representative or supervisor, I get the wrong information, or they say they will take care of it, but they don't. I have diligent notes, with dates and employee names, do you want that entire list? They use the response " Yes, the payments all qualify towards your PSLF, but it looks like your account is being reviewed ''. And they I ask how long it will take for the payments to be released and put into my history and they answer " We aren't sure how long the review will take ''. 2. I have been on a REPAY Income-driven repayment plan for XX/XX/XXXX-XX/XX/XXXX. In XX/XX/XXXX, Fedloan contacted me telling me it was time to recertify and that all the supporting documentation, income tax return information from XX/XX/XXXX and my application, needed to be turned in by XX/XX/XXXX. I turned in my application and my XX/XX/XXXX tax return transcript before the required date. Since then, they have contacted me stating that I do not have the proper information, even though the information I turned in was listed on their website. Next they said that I don't qualify for the REPAY, even though I have been on it for the past year, with the same income and household information. I have been dealing with this issue since XX/XX/XXXX and have dealt with the same issues, slow processing and every customer service rep giving me different or inaccurate information. When they finally sent me my payment information, they used my XX/XX/XXXX income information to calculate my new payment instead of my XX/XX/XXXX income information. I have been asking for them to recalculate my payment using my XX/XX/XXXX tax return information, but they keep sending me automated responses that my application is being processed and that they will send me more information once processing is done. I was told not to make this new payment because the amount is inaccurate, so I keep waiting. Right now my payment is 25 days past due because they are taking a long time to recalculate it and they are sending me emails saying that they are going to report me to collections. I believe that they are sending me in circles to deter my payment process and stall me from getting to my 120 payments. I have so much documentation that I could include but I am not sure how much you want me to send in this initial correspondence. Anything that you can do to help is greatly appreciated. Since Fedloan is a governmental agency, they know that a consumer has absolutely no control in the situation and I either have to spend thousands of dollars to prove that I am following the criteria of my payment plan, or be shuffled around for years and never get anywhere. Meanwhile the government is making thousands of dollars in interest on my loans which have tripled since I borrowed them.
Company Response:
State: MN
Zip: 559XX
Submitted Via: Web
Date Sent: 2020-01-28
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A