CFPB Complaint

AES/PHEAA – CFPB Complaint 3055205

Consumer Complaint Submission

Date Received: 2018-10-24T00:00:00.000

Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: In XX/XX/2018 I attempted to change my income based repayment plan form a different IBR plan to RE-PAYE. I was told that I needed to submit an application to change my loan payment plan. During the process, I was told that My loan would be transferred to the standard 10 year repayment plan but in forbearance. I would then need to make a nominal payment, such as {$10.00} to cover the month on the standard payment plan. The following month, my loan would be transferred to the new plan and resume under the new RE-PAYE plan. They did say this would cost me one month of Public Service Loan Forgiveness as the month on the standard payment plan would not count.

I submitted my application. When the loan was transferred to the standard payment plan, I made a payment of {$10.00} as instructed. I waited and it took 3 months to change payment plans costing me 3 months of Public service loan forgiveness eligibility.

I submitted a new employment certification and on XX/XX/18 was told that I had made 44 qualifying payments.

On my XX/XX/2018 statement. I received notice that my account was past due {$0.00}. This was surprising since my account has been on auto payment from the 2nd payment. I also noticed that my Public service loan forgiveness qualifying payments has been reduced to 34 on several of my loans. I called the XXXX number and the person on the phone ( id : XXXX ) told me that the {$10.00} payment while my loan was transitioning plans, was not applied to all loans properly and there was an outstanding balance of a few cents on a few of my loans. She stated that since there was an outstanding balance over the past few months, the payments I made would not count towards public service loan forgiveness. I explained that I followed all instructions given and she agreed that they misapplied my nominal payment. Additionally, no notice was given about this outstanding balance until XX/XX/2018. I started the payment plan change in XX/XX/XXXX. She said she would submit the account for review to get the {$.00} cents removed. I explained I was more worried about the public service loan forgiveness. She stated she wasn’t sure what would happen with that. I asked how long it takes to have my account reviewed and she stated she did not know but it could take a few billing cycles.

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At this point, I feel I am being cheated out of qualifying payments towards public service loan forgiveness because of a clerical error. Additionally, I was not properly and timely noticed of a past due amount. Furthermore, I should not have 10 months of public service loan forgiveness retroactively taken away after it was already granted.

Company: AES/PHEAA

State/Zip: IL 611XX

Company Response to Complaint: Closed with non-monetary relief

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 3055205

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