Consumer complaint received 2023-01-21
Company: MOHELA
State: TX
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 am a public servant who qualifies for the Public Student Loan Forgiveness program. I consolidated all of my federal student loans into one loan after I finished graduate school back in XXXX. Under the limited time PSLF program I applied for forgiveness directly to my lender, MOHELA. MOHELA 's website shows that they processed my paperwork on XXXX. 

On XXXX I called MOHELA because I had not heard anything back from MOHELA on my account status. The customer service agent said that my loan forgiveness, although eligible for forgiveness was denied because I never consolidated my federal student loans. There are two issues here : 1. ) I consolidated my loans in XXXX and MOHELA 's website shows this. I have included a screenshot of my consolidated loans on MOHELA 's website. 
2. ) I never received email notification on MOHELA website portal communication about forgiveness denial, even though I am signed up to receive all communication electronically. 

The customer service agent went on to review my file ; she stated she did see my eligible employment paperwork in the MOHELA system and my loans have been consolidated since XXXX. She said a computer reviewed my documents and improperly denied my forgiveness ; therefore, she was going to resubmit my documents that same day ( XXXX ) for reprocessing by a human and it would take 60-90 days. I was able to confirm in my MOHELA account she did resubmit my documents for processing. 

That same day, I filed a complaint with MOHELA 's ombudsman by certified mail. I never received communication back from the MOHELA ombudsman about the failed electronic communication delivery or the forgiveness denial. I have attached a screenshot of the letter with the USPS postage on it.

While I waited for a human to properly review my forgiveness application I received two updates in my MOHELA account. The first was on XXXX that stated my account reflects I have made XXXX PSLF eligible payments of that 15 are qualifying payments; leaving me with XXXX payments left to make. My paperwork submitted shows that I've made more than XXXX eligible payments, yet MOHELA has failed to align the payments with my employment verification showing those payments were made during eligible public service employment. I have uploaded a screenshot of this MOHELA communication. 

The second communication was received on XXXX that stated my account now reflects I have made XXXX PSLF eligible payments of that XXXX are qualifying payments; leaving me with XXXX payments left to make. My payment history shows that my eligible payments made ( XXXX ) far exceed the XXXX needed for forgiveness but they are still failing to properly count all of the qualifying payments and align them with my employment verification documentation dating back to XXXX. I have added a screenshot of this MOHELA communication. 

I can produce all of the public service employment verification documents I've submitted to MOHELA, but the site says not to include personal information. MOHELA obviously has it because they've recognized it in my online account as processed on XXXX ; it has also been discussed by phone with MOHELA multiple times, so I don't understand why they aren't utilizing it. 

I have followed all paperwork processes and met all deadlines, yet MOHELA fails to properly process my eligible payments and eligible public service employment documents. I am in my seventh month on this journey and I need your help.

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