Consumer complaint received 2023-02-13
Company: MOHELA
State: OH
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:
I believe that my student loan was incorrectly denied for PSLF. The IDR Waiver and PSLF waivers have both been applied to my account resulting in an increase in PSLF payment counts. For that I am grateful ; however, I am being denied a just decision regarding the 60 months I spent in Bankruptcy Forbearance between XX/XX/XXXX thru XX/XX/XXXX under the Student Loan Hold Harmless provision in the XXXX Negotiated Regulations. 

All of the following arguments have merit, should be considered, and they should qualify me for full PSLF immediately. 

In the process of filing XXXX XXXX, XXXX put my loans into an Administrative Forbearance. This was not requested by me, nor was it required by Federal Bankruptcy Law. Federal Bankruptcy Law puts a stay on collection. It makes no mention of a mandatory Administrative Forbearance. This is a loan servicer decision. My loans were moved without my consent or without legal requirements into a Forbearance. They were moved from an IDR Plan, which would have had a payment of {$0.00} and resulted in 60 payments towards my PSLF count, into a status where I am not receiving the credit I deserve. This is the very definition of Administrative Forbearance Steering that loan servicers have been shown to abuse. Because of this, all of these payments should count under the Income Based Repayment or IDR Waiver rules. 

If that argument is found wanting, then it should be understood that XXXX XXXX  is not a liquidation of debts. It is a reorganization. Payments were actually made to XXXX during this period, so I forfeited credit for 60 payments under IDR Repayment ( previous paragraph ) and I was then put into repayment by a Federal trustee. I actually MADE 16 PAYMENTS to Fedloan during this period that amount to {$12000.00}. I have submitted documentation from XXXX to Federal Student Aid demonstrating this and I can again if necessary. I made 60 consecutive monthly payments to the Federal Trustee for XXXX These monies were sent to XXXX. They recorded the payments. They accepted the money. These should have been credited under President Bidens PSLF Waiver that counted ANY partial or lump sum payments. For that reason I should be credited 60 payments towards PSLF for the XXXX XXXX XXXX Period.

I have been exploited and victimized by XXXX decision to move my loans into a Forbearance Status that was not required by Federal Bankruptcy Law. I made payments during that period and I received no credit towards PSLF. Payments were made and not credited ; forbearance was foisted upon me and not credited. This is a misapplication of Federal Regulations and miscarriage of justice. 

Under the Negotiated Regulations from the Fall of XXXX, the Hold Harmless provisions allow for make-up payments to be made for credit towards PSLF for months where the status is in question. At the very least, the Hold Harmless provisions should apply to me, especially since I already paid, {$12000.00} and received no PSLF credit. 


Please hold me harmless! I paid my debts via XXXX XXXX ; I made arrangements to do right by the people I owed money to. I paid my student loans while in XXXX XXXX. The evidence is there. Grant me the credit I deserve or allow me to make additional payments. 

These arguments have merit and should be addressed. I look forward to hearing from you. 

XXXX XXXX XXXX See attached for payments acknowledged by XXXX on the following dates.

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