Complaint Review: Pennsylvania Higher Education Assistance Agency - Harrisburg Pennsylvania

 I had to get a Parent Plus Loan for my son’s tuition.  When I was required to make the payments,  I paid the required payment each month.  I became disabled and was unable to make the payments.  I was put into a rehabilitation program by PHEAA.  I am able to work part-time and based on the income from my job and Social Security Disability, my payments were $5.00 per month.

Prior to this calculation, my wages were being garnished.  When the garnishment stopped I called PHEAA to inquire as to why they had stopped.  I was told that I had paid the required amount of payments for wage garnishment.  I was then told that based on my income my payments would be $5.00monthly for 9 months, after which my income would be evaluated.

I made a payment over the phone, and asked to set up electronic payments.  I was told that I had to fill out a form that would be sent through the mail, and that it could either be faxed or mailed.  I opted to fax it, assured that the process would be done.  Each month I would receive a call stating that my account was past due.  I informed them that I had faxed the form and in the subsequent months I would receive the same call. Each time they called, I made a payment over the phone, and requested another form to submit.

Fast forward, I received a letter from the Department of the Treasury stating that they would be taking 15% of my SDD and all of my Federal and State Income Tax for 2015. I called PHEAA, no matter what time I called during their business hours I would be put on hold with a recording that stated due to a heavy call volume, it would take X amount of time to speak with a representative.  I would hold on for an extended period of time and the call would disconnect.  This went on day after day.

I was finally able to reach a representative; I was told that the form for electronic payments had not been received.   I reiterated that the form had been faxed numerous times.  I was told by a representative that it was my responsibility to check my account each month to make sure that the payments had been made. Infuriated, I called their legal department, and was transferred to a supervisor. The supervisor finally admitted that the form had been received but it didn’t indicate whether the account number was for my checking or savings account. REALLY!  When I protested, she said that nothing could be done once the account was sent to the Department of the Treasury.  I sent a certified return receipt letter to the Department of the Treasury, only to be told that it was in the hands of PHEAA to make the decision to stop the payments.

It’s an outrage that my payments of $5.00 for a loan that has escalated to $64,000, to having 15% of my income and my income tax return, (that I depended on for the months that I have more month than money).  When checking with the Better Business Bureau, they have 275 complaints that have been closed in the last 3 yrs. 181 due to billing issues. In the last 12 months 84 complaints have been closed.  They are not accredited; a class action suit was filed against them by the help desk employees but was denied because PHEAA is considered a Federal Agency.

In addition, you are not able to access your account online when you’re in the rehabilitation program.  I plan to pursue this with every fiber of my being. I will continue to write and report them to any and every agency, government official and anyone else that I believe can help me to get out of the dire straits that I’ve been put in by PHEAA. In addition to reporting them on this site, I have also reported them to the Better Business Bureau, and the Consumer Financial Protective Bureau. I look forward to updating my progress.