Consumer complaint received 2023-05-18
Company: MOHELA
State: KY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I applied for Public Service Loan Forgiveness XX/XX/XXXX. I was originally with XXXX at the time and had my loans transferred to Mohela in XXXXXXXX XXXX XXXXXXXX. I graduated from the XXXX XXXX XXXX in XX/XX/XXXX, started working in XX/XX/XXXX and have well over the 10 years ( XXXX ) of qualifying payments. One out of three loans were forgiven for PSLF/ TEPSLF. The loan forgiven had the smallest remaining balance ( well under {$1000.00} ) and dispersed on XX/XX/XXXXXXXX The two remaining loans total over {$89000.00} and were dispersed XX/XX/XXXX. There are missing loan payments in one system from XXXX that have not been applied to the remaining two loans. I have employment verification for this time period and was not in any type of forbearance. These missing loan payments were counted for the small loan that was forgiven, so I'm not sure why it wouldn't have been counted for the other two loans. I have called Mohela and the Federal Student Aid Ombudsman multiple times to get the missing loan payments recounted since I am over the 120 qualifying payments. I placed the initial call to Mohela regarding the discrepancy and missing payments on XX/XX/XXXX and was given a tracking number by a supervisor XXXXXXXX XXXX XXXX ( tracking number XXXX ) who stated she could see the missing counts in her system and that she's not sure why the counts were not applied to all of the loans. She stated it would be 30 business days for resolution and she submitted for recount. I did not get any updated count information in 30 days, and called the ombudsman who stated I needed to call Mohela for it to be addressed. I called Mohela a second time XX/XX/XXXX and discussed it with another supervisor who stated she could see those missing payments were made and that the case had been assigned to someone for the recount, and to give it another 30 days. On XX/XX/XXXX I called and discussed it again with Mohela, and was told to give it more time. I tried the Mohela chat function on XX/XX/XXXX and she stated I had to call to get it escalated. I called Mohela XX/XX/XXXX and spoke to yet another person who spoke to supervisor XXXX -- was told it would be another 1-2 weeks and that the information has been submitted to the Federal Student Aide office for over-ride. This process has been ongoing for over a year since I initially applied for PSLF/TEPSLF forgiveness. I checked the box stating I was at the 120 payments which should have given my loans priority. Even though my loans were transferred to Mohela, it has been 8 months and counting without resolution. Since the initial complaint to Mohela regarding the missing payments, it has been just shy of three months. ARE YOU EVEN KIDDING ME? I find it very frustrating that people who applied WELL AFTER I did are having their loans forgiven in a few months. And yet, here I sit wasting hours of my time calling Mohela without any resolution in the foreseeable future. I was told to call back in a few weeks, yet again, which will be another hour of my wasted time.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief