Consumer complaint received 2023-08-28
Company: MOHELA
State: CA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
PSLF ( public service loan forgiveness ) : There was a Special Waiver in XX/XX/XXXX. I applied for Public Service Loan Forgiveness when I had made XXXX payments in XXXX XXXX I then waited for a delayed period of time and my application was accepted, but the new servicer needed to count the payments. My application was being transferred to MOHELA. After another 6 months, MOHELA finally had some information, but it didn't take into consideration the Special Waiver. I then initiated reconsideration for my PSLF application. 

1. MOHELA is not counting all the Qualified - Special Waiver payments because of deferments. Im showing 95 payments instead of XXXX. All the payments should be counted because I should have been given the option to be on other payment plans. 

2. If indeed these Qualified - Special Waiver payments ( or if I did not make a payment ) are not qualifying, I would like to escalate the issue because when I called FSA, my loan servicer ( there have been several over the years ), and my employer, no one had information about PSLF. They couldnt tell me if I was eligible or not, and if I was eligible, could not give me information about what I should do to remain in good standing. I called in XXXX when PSLF was rolled out. I called again in XXXX XXXX XXXX XXXXeach time I had to make a major decision. Without the information, I still had to move forward. The information about PSLF was first published to the XXXX site in XXXX exactly the year after my 10 yr tenure with a qualifying PSLF employer completed. These issues are not isolated to MOHELA. All student loan servicers I have had contributed to this, but MOHELA is my current student loan servicer. 

In one of my calls, the rep at MOHELA told me that PSLF is on hold pending the XXXX case decision. I informed him that the XXXX case is regarding the one time Student Debt Relief. He said he thinks PSLF is on hold pending the Student Debt Relief decision. He is either misinformed, or MOHELA should not be holding the PSLF program up for the debt relief, which is somewhat unrelated. Student Loan servicers benefit from holding loans and discharging any for PSLF or debt relief is a financial blow to them. If this is happening, it is unethical. If it is not happening, then the misinformation that is being given to borrowers is at an unparalleled level, adding to borrower confusion. 

3. MOHELA refers me to XXXX XXXXDept of Education . XXXX XXXXDept of Education refers me to MOHELA. I keep going through this loop endlessly. 

IDR application ( Income-Driven Repayment alternate plans ) : At this point, I have been on so many calls, going through automated systems, not getting the information I need from MOHELA or from XXXX XXXX that I am at my wits end. 

1. I lost my job in XXXX XXXX. I selected the option for having a significant change to my income. I was told that I would not be asked for tax information, but I was. When I did have to enter my XXXX, the instructions were not clear about estimating the current year XXXX, or instead, including the very last tax year XXXX, or as suggested by FSA, the year before that XXXX. But what I put in for my income matters. At no point was I asked for income and debt breakdowns. 

2. It was also not clear whether I should include Unemployment Insurance ( UI ) payments as income ( I also qualify for XXXX and for state-sponsored healthcare, XXXX XXXX XXXX What I put in for the current years AGI matters because it changes my IDR payment plan and payment amount. It does not make sense to me to pay XXXX XXXX XXXX XXXX for an IDR payment when I am unemployed. If I were to report UI at $ XXXX ( $ XXXX ), it doesnt take into consideration my mortgage, HOA dues, or energy bills. Selecting having a significant change in income didnt have an impact my payment whatsoever. 

3. Being on an IDR plan should increase my PSLF payment count, but I can not complete the application. 

Ombudsman for Student Loans : XXXX XXXX XXXX  ( Thursday ) I tried calling and got an Ombudsman call center. After 40 minutes on hold, the person there was argumentative and would not listen. He gave me a number for the Dept of Education and insisted I needed to call that number. He also insisted that XXXX XXXX is not a part of the Dept of Eduction , and it is. When I called that number it was for loans in default. My loans are not in default. 

XXXX XXXX XXXX ( Friday ) I tried calling the Ombudsman call center again. I waited 20 minutes on hold. When that person realized I need to speak to the ombudsman, she tried transferring me to the ombudsman. However, I got a message that the Ombudsman is not accepting calls at this time ( or similar ). I called back again and waited another 20 minutes and while I was discussing things with the person, the call disconnected. It was a Friday, so I thought I'd try again on Monday. 

XX/XX/XXXX ( Monday ) I tried calling the Ombudsman call center again. I waited another 20 minutes on hold. This time I'm being told that I can not be transferred to an Ombudsman, but need to be placed on a list to be called. I asked what the turnaround time is and they told me it could be days, a couple of weeks, or several months. Repayment is starting soon and this is not helpful. 

The person then told me that I should call MOHELA and get on an IDR plan. I explained to her that another reason I need the Ombudsman is the IDR application that is broken because MOHELA sends me to XXXX XXXX/Dept of Ed , and XXXX XXXXDept of Ed sends me to MOHELA. I informed her that in this complaint about MOHELA, I now have to add the Ombudsman 's office to the complaint because I have been going through this since XXXX, repayments are restarting, and I can not get resolution. The Ombudsman who should be able to help untangle this is also unavailable in a timely manner. I have been going in circles.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation