Consumer complaint received 2023-09-11
Company: MOHELA
State: IN
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Problem with forgiveness, cancellation, or discharge

Complaint:
I have been a full-time employee of the Social Security Administration for 18 years. As a public servant, I applied for Public Service Student Loan Forgiveness under the expanded rules in XXXX of XXXX. My application was not processed until XX/XX/XXXX. 

While I am pleased that my loans were recently forgiven, Direct Loans, Mohela and the Department of Education each independently admit that the refund for my payments is incorrect. Unfortunately, nothing is being done. I have waited 60 days since informing Mohela of the error. No actions are being taken to correct the underpayment. 

I obtained the attached documents from Mohela, my most recent student loan servicer. The highlighted payments shown on the attached documents were all made under the Direct Loan program. and qualify for a refund. Per the PSLF rules, all qualifying payments in excess of XXXX are to be refunded. Three issues are noted : 1. At the time of my PSLF, I had a total of 175 qualifying months. This exceeds the required 120 qualifying payment months by 55. 

2. It is noted that a number of the qualifying months are credited due to deferments under Presidential initiatives implemented during the pandemic beginning in XXXX. I have identified those specific qualifying months. I understand that those are not literally " payments '' and can not be refunded. 

3. Among the 55 excess qualifying months, there are more than 30 actual payments that I made to my prior servicer, Direct Loans. Their payment log, Mohela 's own document ( attached ) and my financial records all agree that I made these payments of exactly {$20000.00} beginning in XXXX of XXXX and that 100 % of those 30 payments were made under a qualifying federal student loan servicer. 

Mohela indicated to me that this would be my refund amount. 

In XXXX, I received a Public Service Loan refund check in the amount of {$4000.00}. I should have received {>= $1,000,000}. The balance I am owed is {$16000.00}. 

There is another error. 

According to Mohela 's letter dated XX/XX/XXXX ( attached ) Mohela indicates that I received the refund of {$4000.00} " due to making payments during the COVID-19 Emergency Forbearance. The attached copy of Mohela 's own record of my payments shows that this is inaccurate. 

My last payment to Direct Loans was made on XX/XX/XXXX -a full three months prior to the day that the COVID-19 Emergency emerged. Mohela 's record of this payment is on page three of the attached payment register. It is the final entry under the " effective date '' column. 

Being a public servant for the past 18 years has been a rewarding experience. Please assist me in getting this corrected as soon as possible as I need the refund for unanticipated medical expenses that have unfortunately arisen. Thank you for you attention to this matter.

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