Consumer complaint received 2023-03-16
Company: MOHELA
State: IL
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:
XX/XX/XXXX, I spoke with Mohela regarding PSLF. I was in the process of consolidating my loans to Direct Loans, so that I could apply for PSLF. I was told I could send in my PSLF application as my loans were being processed for consolidation and did so. 
On XX/XX/XXXX, I used the PSLF tool to find out if my employers were qualifying employers and they were. I obtained the signatures required from all three employers and submitted my PSLF application. 
-- -- -- -- -- -- - On XX/XX/XXXX, Mohela indicates in my account that my application was received. 
-- -- -- -- -- -- On XX/XX/XXXX, Mohela indicated that my loans consolidated. I was told in XXXX to give them 30 days to process my PSLF application. 
In a letter dated XX/XX/XXXX, received a formal letter from Mohela that my PSLF application was received, but my Mohela account says XX/XX/XXXX and I communicated this to Mohela. 
-- -- -- -- -- - In a letter dated XX/XX/XXXX, I received a letter stating that I did not have enough payment counts to qualify for PSLF with only my current employer listed. They did not have my other 2 employers that I submitted in my application for XX/XX/XXXX included. I called them XX/XX/XXXX when I received this incorrect letter. The Mohela rep pulled my application and verified that I did indeed have all three employers on my application. I was then told to give them 90 days from XX/XX/XXXX to finish processing my form and approve my other 2 employers, which I did not understand as I had the appropriate forms and signatures, and they were considered approved employers on the help tool. I was told that I could have provided false documentation, which is why they need to be approved. I followed up again in early XXXX, but was told the Department of Education had my application and everything was out of their hands and to wait the 90 days. As 90 days from XX/XX/XXXX was XXXX time, I decided I would wait until the new year to call again. 
-- -- -- -- -- -- I contacted Mohela on XX/XX/XXXX. The rep put me on hold several times to locate my application. The rep came back and told me that the Department of Ed approved my employers in late XXXX, and he was now sending my file to be reprocessed to obtain my payment counts. I asked him how this worked, and he said don't worry, they have the ability to obtain all of my student loan payments made from the Department of Education. He told me to give them another 90 days to get the payment counts, then it might be another 90 days to get the loan officially forgiven after the counts. I told him that as they did not update my employer approval in XXXX without him having to now search for it in XXXX, I would call sooner than 90 days. 
-- -- -- -- -- -- - Now it is XX/XX/XXXX, I called Mohela and spoke to XXXX, and he tells me that my application was sent back to the Dept of Education to be reprocessed to approve my employers, not to get my payment counts. I told him that on XX/XX/XXXX, I was informed that my employers were approved, and my application was being reprocessed to get my payment counts. He said " no, my employers weren't approved employers at the time of my application ''. I told him this is incorrect, as I used the PSLF tool on studentaid.gov in XXXX prior to submitting my application, and the tool verified my employers as approved. 
-- -- -- -- -- -- - I asked XXXX for a supervisor and was forwarded to XXXX. I talked to XXXX the supervisor at Mohela, XX/XX/XXXX. She found that as of XX/XX/XXXX, Advantage supposedly submitted my consolidation paperwork wrong, and Mohela had to recreate my Mohela account with the correct information and loan amount. XXXX stated that as a result of this, my PSLF had to be put on hold until my account was corrected. I have now been told to give it 60-90 days from XX/XX/XXXX to have my payment counts updated. XXXX assured me that my PSLF is not being reprocessed all over again, my employers are approved, and they are waiting on Studentaid.gov to update the payment counts. I let XXXX know that what happened is unacceptable, as I did not receive any correspondence that there was an issue with my account or that it was being updated. I instead found out there was a change in my account from an XXXX credit update. At this point, it had been almost 7 months since I submitted my PSLF application XX/XX/XXXX. Also, I am very concerned that it would take Mohela 5 months to detect a problem with my loan consolidated on XX/XX/XXXX in order to receive my PSLF. 
-- -- -- -- -- -- - On XX/XX/XXXX, I submitted this very complaint to Federal Student Aid and given case # XXXX. I never received any answers from Federal Student Aid. I logged in today, XX/XX/XXXX to find they simply closed this complaint. They did not try to contact me or give any explanation of where my application is. I completed a survey stating I was very dissatisfied with closing my case and not even contacting me, as it has been 7+ months with no resolution. I have done everything appropriately on my end and have even been told that I have done everything appropriately. 
-- -- -- -- -- -- XXXX XXXX Mohela told me that I have done everything correctly and nothing is my fault. She confirmed that my PSLF is not on hold due to the XXXX lawsuit, as that is a different forgiveness program. She even apologized for previous reps who stated that my employers had to be verified because they had to prove I did not provide false documentation. She assured me that my employers are approved, my payment counts are being worked on, and gave me the following number to contact her : ( XXXX ) XXXX ext XXXX. I tried to call today, XX/XX/XXXX, and I am not given an option for this extension. I keep getting the run around from the automated system. 
-- -- -- -- -- -- - At this point, XXXX will be 8 months of submitting everything correctly! I should have a dedicated contact with Mohela with direct contact information. I should also have a resolution, as it seems I have been given the run around for almost 8 months now.

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