Friday, February 15, 2019

Checking in With My Student Loans

Wee Watson, my trusty sidekick
My student loans and I have been together longer even than me and my precious cat!  And yet, despite being on the Public Service Loan Forgiveness plan, they show no signs of actually going away after I make 120 on-time payments, despite me doing everything I'm supposed to do!

I've been much more aggressive about taking screenshots of my loans, because my loan servicer (Fedloan Servicing) repeatedly makes mistakes, doesn't do what I ask them to, and also generally doesn't seem like they know what they're doing.

Case in point, I was making extra payments to one of my high interest loans, but every time I made an extra payment, my regular payment would then not deduct from my auto pay.  I called them up and said "what the hell?" and they said "Oh, that loan is in paid-ahead status, therefore, since you've already paid more than your monthly payment, we won't deduct the normal amount from your bank, even though you're on the auto-pay plan."  This was in 2015, so I told the person I was speaking to to remove paid-ahead status from my account so that any extra payments I made would not interfere with my regular payments.  She said she would remove paid-ahead status from all my loans right away.

About four months later, it happened again, and I called, again, to ask why paid-ahead status had not been removed as I requested.  They said "So sorry, we'll do that right away."

In 2016, I put it in writing, and got this back:
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When I look at my loans individually, it shows me how many qualifying forgiveness payments I've made, and the anticipated date of forgiveness.
Click to embiggen
That screenshot is from Loan #6, taken 02/15/2019.  This screenshot is also from Loan #6 taken 11/06/2016.

Notice how despite me making 100% of my payments on time (I'm on auto-pay, so they just take the money out of my account on the due date), my date of forgiveness has slipped by about six months?  Isn't that interesting.  This is the case on all of my loans (I have eight of them) EXCEPT the one loan I made some extra payments on.  Extra payments aren't supposed to advance your forgiveness date (though in this case they've more kept the date consistent), and you're really not supposed to be making them at all, but I'm losing my mind watching so much interest accrue on a daily basis, that I made the somewhat stupid decision to throw some extra bits of cash at that one loan.  Except maybe it wasn't a stupid decision because this is what that loan is currently showing:
Click to embiggen


So I emailed them in December asking why this is happening, and I received this response:
Click to embiggen

After not hearing anything after that email, I followed up again February 1 to ask if they've got any answers for me, and I haven't heard a peep.

So, this saga is taking up a tremendous amount of my time and energy, but I am determined to be their worst nightmare until they actually do what they've said they'll do.  I have to keep up my end of this devil's bargain, why don't they?

Thankfully (maybe?) I'm not the only one having these kinds of issues.  According to NPR: "While all nine loan servicing companies occasionally failed to follow the rules, some did so more frequently than others. According to one review of borrower phone calls from April 2017, servicers failed to comply with federal requirements in 4 percent of calls, on average. But PHEAA failed to give adequate or accurate information in 10.6 percent of its calls with borrowers. A review of more than 850 calls the following month found that PHEAA representatives failed to follow the rules in nearly 9 percent of those interactions — more than five times the average failure rate of the other servicers that month."

PHEAA is my servicer, and I can 100% agree that depending on who you talk to when you call, you can get completely different answers.  And they are incredibly eager to put your loans into forebearance for almost no reason at all.

Even if you're lucky enough to not have any student loan debt, there is still going to be a reckoning coming that affects everyone.  The fact that these government loans are being serviced by non-government agencies that charge insane interest rates is alarming and should bother everyone. I have over $40,000 in loans at an interest rate of 6.55%, and the monthly payment that I have to make in order to qualify for Public Service Loan Forgiveness doesn't even cover the interest each month, so the amount owed keeps climbing higher and higher despite me following the rules that they set.
I don't think they're actually read the banner on their own website.

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