AES/PHEAA – CFPB Complaint ID 2473650

Date Received: 2017-05-03T00:00:00

Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: *This letter was sent to the student aid ombudsman on XXXX XXXX , XXXX ( Please note that this is my original complaint. FedLoans s ervicing is currently making it extremely difficult to terminate my loan consolidation process. Be mindful, that as of today my current loan holder XXXX XXXX whom I acknowledge is still servicing my LOAN. There is a supporting loan status letter that verifies my account is current with XXXX XXXX . FedLoans i s claiming to be the account holder, but XXXX XXXX has not received the funds to release the account as of XXXX / XXXX / XXXX . FedLoans attempted to purchase the loan on XXXX ; however XXXX XXXX sent back {$90000.00} of that {$44000.00} was my loan portion. XXXX XXXX stated that was not enough to pay off the loan. At that time XXXX was waiting on FedLoans to pay off the loan before releasing it. XXXX XXXX provided the Trace # XXXX as proof. On XXXX / XXXX / XXXX XXXX XXXX sent information to FedLoans Services stating pa cket # XXXX was {$4000.00} short. They informed d FedLoans that they need to receive payments before they will release the loan. On XXXX / XXXX / XXXX I called FedLoans, XXXX ID # XXXX , who stated that the consolidation process was still pending. He stated it would take 10 days before the consolidation is complete. I informed XXXX that FedLoans w as seeking monthly payments from me as well as XXXX XXXX . FedLoan representative XXXX stated he did not understand why FedLoans was seeking payments because the consolidation was not complete. I wondered why as well, but made the payments to protect my credit score. After speaking with FedLoan Repres entative XXXX I decided to decline. I no longer wanted to proceed with the consolidation process. On XXXX / XXXX / XXXX I spoke with another FedLoan Representative, XXXX ID # XXXX . I told XXXX that I faxed, and logged into my account to terminate the consolidation process and that I was following up on the status. XXXX proceeded to agree and granted me the termination. He said it would be officially terminated once XXXX returns {$140.00} to the XXXX XXXX XXXX . He also stated that the two payments that I made to FedLoans s would be forwarded to XXXX once the termination was finished. I called XXXX XXXX to inquire about the {$140.00} in question. XXXX XXXX did not know what I was speaking of. They stated that they do not owe FedLoans any funds because they never received the funds from FedLoans. ( Which is why they still have my loan/s ). XXXX XXXX then referred me to the Ombudsman. FedLoans is claiming to have paid XXXX , XXXX is claiming not to have received the funds. My account was showing the option to add or remove loans, until today XXXX / XXXX / XXXX it mysteriously vanished after speaking with Representative XXXX . ( I provided a screen shot of that ) In a matter of hours after speaking to XXXX , my account showed my consolidation as completed this is after Representative XXXX obliged to the termination. I do not want FedLoans to be my loan servicer. Also, FedLoans claim s that I was late on the XXXX payment that I submitted, but that wasnt the case as I included a copy of the payment history. Every time someone claims to update the account, it continues to show up as delinquent. I just want to remain with XXXX XXXX . FedLoans, for the most part does not seem to be forthcoming with valuable yet, truthful information. *This was sent to the ombudsman on XXXX XXXX , XXXX ( UPDATE after my original complaint ) I am sure you all are working diligently on my case. In this process I have been in contact with Fed Loans Servicing . There is a representative named XXXX who speaks directly to me in regards to my current loan situation. On XXXX XXXX , XXXX @ XXXX we spoke for 27 minutes and 35 seco nds. This conversation was very informative. Mindful this was as of XXXX XXXX / XXXX / XXXX XXXX XXXX had yet to send all the funds back to Fed d Loans Servicing. They were to send back the amount that Fed Loans paid to consolidate the loans. This was on XXXX XXXX , XXXX . She informed me that FedLoans sent two payments. On XXXX XXXX , XXXX FedLoans s ent {$44000.00}. XXXX returned that payment on XXXX XXXX , XXXX . FedLoans t hen sent an underpayment amount 0f {$3700.00} on XXXX XXXX , XXXX . On XXXX XXXX , XXXX FedLoans s ent XXXX the {$44000.00}. ( At the time of the conversation XXXX XXXX ) FedLoans is/was waiting on XXXX to send those funds back, the {$44000.00}. XXXX did not accept the underpayment of {$3700.00}. They sent that payment back on XXXX XXXX , XXXX . Because it was an underpayment of {$1000.00} XXXX would not accept it. Fed Loans Representative XXXX XXXX XXXX informed me that she was unaware of XXXX underpayment policy. XXXX informed her of the policy and now she understands. Fed Loans Representative XXXX XXXX XXXX also stated to me that once they receive the funds back form XXXX that I can then 1. Proceed with cancelling the consolidation with FedLoans, 2. Proceed with the consolidation, now that FedLoans i s aware of XXXX underpayment policy. I am sure I am going to terminate the consolidation at this time. Representative XXXX was very diligent with correcting the delinquency that was displaying on my FedLoans account. She was able to see that my account was indeed current. As I stated before, although the consolidation was never officially completed, Fed Loans was still billing me, and out of fear of a bad credit reporting I was paying FedLoans as scheduled. Representative XXXX did inform that If I choose to terminate the consolidation with FedLoans, that the payments I made to FedLoans would be forwarded to XXXX . It would take 30-60 days. I spoke with Representative XXXX on Thursday XXXX XXXX , XXXX @ XXXX for 4 minutes and 30 seconds. During the conversation she had informed me that the XXXX refund ( or returned funds ) had popped up on XXXX XXXX , XXXX . She said it still had to process. The processing might be completed tomorrow XXXX XXXX but not later that Tuesday XXXX XXXX , XXXX . On XXXX XXXX , XXXX I did receive a letter in the mail dated XXXX XXXX XXXX , XXXX ), that stated that XXXX part of the loan was removed from the consolidation application the amount of {$3700.00}. Now I am just waiting for the {$44000.00} to be processed removed as well. I am still somewhat confused ; the last time I spoke with XXXX they had informed me that they never received the funds. I am sure you all will investigate and resolve that. Once that is complete I am hoping that the removed loans will reflect on my studentloan.gov account as well. According to student aid.gov it appears that I CURRENTLY have XXXX loans with both XXXX XXXX and FedLoans. XXXX direct contact is : XXXX XXXX XXXX XXXX

Company: AES/PHEAA

State/Zip: GA 309XX

Company Response to Complaint: Closed with monetary relief

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 2473650

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