Consumer complaint received 2023-09-22
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:
Hello, MOHELA is taking over 10 months to update my PSLF payment count prior to my consolidation and they don't understand the terms of the Limited PSLF Waiver Opportunity. They insist that they received my Loan Consolidation Application on XX/XX/XXXX when Federal Student Aid 's website confirms my application was sent to MOHELA on XX/XX/XXXX XXXX PM. MOHELA 's website now says the status " XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX ''. 

My Loan Consolidation Application was sent to MOHELA on XX/XX/XXXX XXXX PM. Direct Consolidation Loan Application and Promissory Note OMB No. XXXX Signed on XX/XX/XXXX. I've been waiting over 10 months for the payments prior to the consolidation to update on the PSLF tracker payment count. When I called MOHELA XXXX XX/XX/XXXX and talked to XXXX ( ext XXXX ) and the escalation line XXXX ( ext XXXX ), they both insisted that my payments prior to consolidation wouldn't qualify because MOHELA received the form on XX/XX/XXXX. 

I was on the phone for over an hour explaining that my application was submitted via the PSLF Online Tool on XX/XX/XXXX XXXX PM ; therefore, the waiver would qualify according to Federal Student Aids website ( https : //studentaid.gov/announcements-events/pslf-limited-waiver ), " I submitted a consolidation application by the deadline, but the processing of my consolidation was not completed by XXXX XXXX, XXXX. Am I eligible for the benefits of the limited PSLF waiver? If you have FFEL, Perkins, or other loan types that are not Direct Loans, your consolidation application must have been submitted online through StudentAid.gov by XXXX XXXX XXXX XXXX on XXXX XXXX, XXXX, in order for you to receive the benefits of the limited PSLF waiver. 

After explaining this multiple times, XXXX ( ext XXXX ) then said that MOHELA doesn't process my Loan Consolidation Application and Federal Student Aid will process the form and update the payment count prior to the consolidation. 

This also is incorrect according to the Federal Student Aid website, " We expect that it may take at least 90 business days for MOHELA to process these forms. Many factors impact processing times, including if your loans were with another servicer and require a transfer to MOHELA, if the form had any missing fields such as an employer 's EIN, the number of PSLF forms we receive, and if we are reviewing your employer 's eligibility, among other factors. Once the processing is complete, it will take additional time for the servicer to make adjustments to your payment counts and apply discharges. 

It is apparent that MOHELA doesn't understand the Limited PSLF Waiver Opportunity and is taking over 10 months to process my Loan Consolidation Application. 

I would like MOHELA to update the PSLF payment count prior to the consolidation of my loans. 

Thank You, XXXX XXXX XXXX

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