Consumer complaint received 2022-10-03
Company: MOHELA
State: VA
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:
Mohela has incorrectly denied my PSLF application, provided incorrect and conflicting information, and failed to give me credit for payments that are eligible and qualified based on the limited PSLF waiver. I consolidated my loans in XXXX of 2022 and was transferred from XXXX to Mohela. It is important to note that prior to consolidation, I had 104 qualifying payments that had been processed and approved by XXXX. 

I consolidated under the terms of the waiver, which states " Periods of repayment on loans before consolidation count, even if paid late or for less than the amount due '' count towards PSLF. ( Quoted from studentaid.gov, XX/XX/2022. ) According to a letter from Mohela dated XX/XX/2022, I was denied PSLF " NOT ELIGIBLE : Based on our review, you do not have any eligible loan types. Under federal law, PSLF and TEPSLF are only available for loans made under the XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( Direct Loans ). However, loans made under other federal programs may qualify if you consolidate them into a Direct Consolidation Loan. '' This is incorrect. Both of my loans are direct loans and qualify for PSLF. 

Mohela further stated in that letter : " Only payments you make on the Direct Consolidation Loan will count toward the required 120 qualifying payments for PSLF. '' This is also incorrect as I consolidated while the limited waiver was in effect. It directly contradicts the terms of the limited waiver and is obvious misinformation intended to mislead borrowers. I would not ordinarily ascribe nefarious intent to such misinformation, except that I then received multiple letters, all from Mohela referencing my account, that stated this same misinformation. 

On XX/XX/2022, I received five separate letters from Mohela. In two separate letters, both dated XX/XX/2022, they said I still needed 119 payments to qualify for forgiveness. Again, by my count, I should have 115 qualifying payments. Two other letters, also dated XX/XX/XXXX, proclaim I am not eligible because I do not have any eligible loan types. 

A final letter states I am not eligible because I am not employed full time. " NOT ELIGIBLE : According to the information you provided on your application, you do not meet the qualifications for full-time* employment. If we receive another certification of employment from another qualifying employer for all or a part of the time period listed on your application, we will determine if, together, your employment meets the qualification for full-time employment and determine if you have made the required 120 qualifying payments necessary for PSLF or TEPSLF. You must be working full-time for a qualifying employer at the time you apply for forgiveness and at the time the remaining balance on your loan ( s ) is forgiven. 
*Full-time means working in qualifying employment in one or more jobs : An annual average of at least 30 hours per week or, for a contractual or employment period of at least 8 months, an average of 30 hours per week ; or Unless the qualifying employment is with two or more employers, the number of hours the employer considers full-time; whichever is greater. '' I have been employed full time, working 35-40 hours a week, by a public school system for the past twelve years and prior to that I was a long term substitute teacher working 35-40 hours a week for a public school system. This employment information is unchanged from my prior approval by XXXX and no information is provided as to why my employment, which previously qualified, no longer qualifies. 

As you can imagine, this erroneous and conflicting information has caused me great distress. Receiving one letter with such information may be a mistake but multiple such letters can only be reasonably seen as an deliberate attempt to mislead borrowers. 

I have attempted to call Mohela regarding these issues. On three separate calls, the number listed on their website resulted in a busy signal. The two times I was able to get through, I was told there was a wait time of an hour, and an hour and a half, to speak with a representative. There were no other options presented. Emails sent to their customer service center are unanswered. I am left with no recourse and no way to resolve issues. 

I would like this matter addressed and for my account to be reviewed in a timely and transparent manner, ultimately restoring to me the correct number of qualifying payments and processing my loan forgiveness.

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