Date Received: 2018-12-11T00:00:00.000
Product: Federal student loan servicing
Issue: Struggling to repay your loan
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: My current student loans were taken over by XXXX XXXX XXXX from another company which took me through a rehab program to get the loans in good standing. As is common practice for all loans that are received by XXXX XXXX XXXX, the loans were placed according to them, on to a ” standard ” payment plan. After not too long I decided that I wanted to move them over to a more affordable payment plan, so I went through the process of applying for income driven payments.
At the time of requesting the move, I was told I had two options, either go in to forbearance which would allow me to stop making payments whilst my application was processed or allow my loans to default for non payment. Well I didn’t want my loans to go in to default again so I went along with the forbearance idea, but at the time they did not tell me that the interest ( approximately $ 9k ) would be moved from total interest across all loans to the principle amount.
This means that I am now paying interest on interest which is totally unreasonable. I was neither told about this nor did I request it.
Prior to this the figures were approximately : $ 37k principle $ 9k interest Since the shift in XXXX of this year, my principle then became $ XXXX and I am now paying an average interest rate 4.88 % per year.
Just to keep my loan where it is now I have to pay 4.88 % of $ XXXX per year forever, until the loan is paid. This is totally unreasonable and I did not request this. My interest should still be $ XXXX and that should be the interest to be paid, not 4.88 % of $ XXXX.
XXXX XXXX XXXX needs to be investigated for this type of behavior. Lets be honest, nobody would be in the business if they weren’t making money but to do it this way is very deceitful and underhand. I of course asked them whether this could be reversed but they told me once it’s done it’s done. I asked them if this happens to everyone that goes through this process and I was told YES.
They need to be held accountable!
State/Zip: FL 341XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3097537
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