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

Complaint:
To : FED STUDENT AID, MOHELA and Consumer Financial Protection Bureau From : XXXX XXXX - XXXX or XXXX XXXX XXXX XXXX, XXXX XXXX, CA XXXX XXXX XXXX RE : Additional Feedback for OPEN FED STUDENT AID CASE # Feedback Case # XXXX RE : Follow up to Consumer Financial Protection Bureau Case # XXXX I have submitted 7 complaints to FED Stu Aid and MOHELA. ( 5 were closed without explanation and two are pending. This is a follow-up to Open FED STU AID XXXX # XXXX and CFPBS Case # XXXX ). I would like this case accelerated to the Ombudsman Program at FED STU AID and for a follow up at CFPBS.

I was employed XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ( from XXXX to XXXX ). I was employed during the PSLF approved period of XXXX to XXXXXXXX XXXX My PSLF form was initially submitted in XXXX and was denied with no reason stated. I then submitted an updated PSLF form in XX/XX/XXXX based on significant outreach by student loan advocacy groups and assurances that PSLFs would be processed differently under the new administration. It was received by MOHELA in XX/XX/XXXX and processed by MOHELA in XXXX XXXX. 
I also worked with my XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX to ensure that I could participate in the PSLF. I met with the XXXX XXXX XXXX XXXX XXXX XXXX XXXX, which assists XXXX  in obtaining PSLF and regularly contacted Student Loan advocate XXXX XXXX at XXXX. I explained that I was a XXXX XXXX and had in fact made over {$270000.00} in student loan payments in my lifetime. I felt entitled to a PSLF loan forgiveness after XXXX XXXX XXXX XXXX XXXX. I also needed to ensure that the original provisions of the PSLF expanded qualifications were honored as related to prior loan payments to private servicers, and the ability to retroactively count on-time payments for 10 years. During the COVID Pandemic, I retired in XXXX, so can not count payments going forward. I can not work until I am XXXX XXXX XXXX to satisfy PSLF! 
I had loans serviced by XXXX XXXX, XXXX and later XXXX during the approved time period of XXXX. During this XXXX -year period I made XXXX on-time payments for student loans. I have actually paid over {$260000.00} in student loans in my lifetime and all payments since XXXX were all on time, never in default and never under forbearance. I still owe {$29000.00} in student loans and believe that after significant payment and on-time history, as well as pXXXX XXXX XXXX XXXX  I should be able to obtain the forgiveness due. I was informed that I needed to consolidate the existing XXXX loan into a Direct Student Loan ( ICR ). I downloaded the form from the MOHELA website and followed the completion and submission instructions on the MOHELA website. I then met with XXXX staff to check the forms and they then faxed my Loan Consolidation form to MOHELA with a second PSLF form in XX/XX/XXXX. I have proof of fax of the IDR form from XXXX to MOHELA on XX/XX/XXXX and the PSLF form on XX/XX/XXXX. My employer mailed additional PSLF form copies as well.

As I was not a current MOHELA customer, MOHELA was unable to provide any information about the status of either document and after calling weekly from XXXX to XXXX, XXXX, I was unable to receive status updates or information. MOHELA staff were not able to provide information related to my loan consolidation form and I was told to wait 30, then 60, then 90 days for processing. I also contacted STUAID.gov repeatedly and was told that PSLF loans were contracted to MOHELA and I would have to wait for them to process the forms. I was also told by MOHELA that due to the federal loan forgiveness legislation and pending ruling, these issues would not be addressed until after XX/XX/XXXX. I also called XXXX repeatedly and was told no consolidation had occurred and no further information could be provided. It is disappointing that contracted private servicer processes are not visible to FED STU AID and assistance is not available when caught in a loop of misinformation or delays.

Finally. my PSLF forms appeared on the MOHELA site as being processed. There was no sign of the loan consolidation form being processed. I then was advised that a new organization, XXXX, had been contracted by STUDENTAID.gov to address loan consolidation in XXXX. I was also told after contacting XXXX  that only XXXX ( not MOHELA, despite paper loan consolidation forms being available to download on the MOHELA website ) could process Direct Loan consolidations ( this type of loan is required for PSLF ) and it needed to be done online. 
I then immediately completed a second loan consolidation form online and submitted it through XXXX. It was processed within 30 days. I also double checked with local legislators, my union, and other student loan organizations to ensure that I would be eligible for loan forgiveness as the loan consolidation resulted in high monthly payments and a longer term at a higher interest rate. Since my PSLF form had been received and I work for a public agency as a teacher, I moved forward. 
During this time period, I had been contacted by XXXX who was doing a series of articles on student financial aid issues as related to PSLF. XXXX featured my story actually, and reporter XXXX XXXX continues to be interested in this saga. 
In XX/XX/XXXX, I called MOHELA again, and was told that I had to wait until XXXX to receive PSLF loan forgiveness since past loan counts serviced by private servicers like XXXX had to be " HANDCOUNTED '' and then total payments tallied and then sent to MOHELA, from the National Student Loan Data System records. As I had XXXX qualifying payments with XXXX this was a key step to PSLF approval. In XX/XX/XXXX, I then filed a complaint with the Consumer Financial Protection Bureau as well as with MOHELA and another complaint which is still open with you at FED STUDENT AID. I received a letter from MOHELA within 15 days of filing the complaint, indicating that I had made only XXXX qualifying payments to my current DIRECT STUDENT Loan and I had presumably XXXX remaining. No mention of prior payments to XXXX was made, no mention of " hand-counting '' prior payments through the National Student Loan Data System and no mention of PSLF approval XXXX The letters sent from MOHELA do not describe status or actions, but rather a series of informational items that imply actions but are not clear. 

I am well-informed on the student loan process and my rights, however, the cast of characters and the misinformation related to PSLF forgiveness has been hard to imagine or even believe. In addition to the lack of coordination between entities and the lack of transparency and the reliance of a forgiveness program on an entity that actually profits from NOT approving loan forgiveness, there is much wrong here. The rules are too complicated and difficult to understand, even for a community college teacher like myself. The changing rules, requirements and misinformation has been staggering. Additionally, call wait times often exceeded 1 hour on hold at MOHELA, and 30 minutes at FED STUDENT FIN Aid and XXXX, with complicated automated instructions, reduced call center hours and a host of new staff in training without the ability to accelerate complicated cases or address questions that deviated from general topics. The MOHELA website provides the same general instructions but no real place for complaints and sources to have problems resolved once a customer is past the general information phase. There is no way to accelerate requests, receive clarification or complain.

I need help here, but more importantly the PSLF system needs help. I understand that my case is more complicated, but on behalf of every teacher caught in a PSLF loop, these barriers have to be reduced.

I believe I am entitled and should be granted PSLF for my remaining NDSL balanc
e. I am requesting that FED STU FIN Aid, MOHELA and the Consumer Financial Protection Bureau as well as elected legislators look at the promise of the PSLF and the reality of individual case requirements and complications and step up. Thank you.

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