Consumer complaint received 2024-09-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (PA)

I originally filed this complaint on XX/XX/XXXX, but XXXX XXXX closed it prematurely. Please do not close this complaint until the forgiveness date has been updated to reflect the accurate date my loans should have been forgiven. 

The response from Mohela came XXXX months later on XX/XX/XXXX. I responded to them on XX/XX/XXXX, but XXXX XXXX left the ticket closed, even though this issue is not resolved. 

After Mohela 's response I reached out directly to Mohela by phone on multiple occasions ( as they instructed in their response ). However, as usual, none of their representatives knows the details that are plain as day on their website ( not their fault, they try as hard as they can given a complete lack of training ), or the phone system simply dumps your call after going through minutes of prompts to press this button or that button. I have also reached out to the ombudsman about this issue, but have received no response at all. 

In their response Mohela based their decision for the forgiveness date on irrelevant information. They claimed that on multiple occasions throughout the last 32 years I was in repayment status that I was in default or forbearance, which is and isn't true - and totally irrelevant. For example, XXXX of the times they pointed out was a period where I was technically in default, but paid more than {$11000.00} in that timeframe. However, my status and/or the amount I paid during that period is in stark contrast to the information on their website regarding how forgiveness is now calcuated. 

The XXXX Department website spells out in detail what counts towards forgiveness at https : XXXX. 

" Borrowers receiving notifications in the coming days include those with Direct Loans or Federal Family Education Loans held by the Department ( including Parent PLUS loans of either type ) who have reached the necessary forgiveness threshold as a result of receiving credit toward XXXX forgiveness for any of the following periods : Any month in which a borrower was in a repayment status, regardless of whether payments were partial or late, the type of loan, or the repayment plan ; Any period in which a borrower spent XXXX or more consecutive months in forbearance ; Any month in forbearance for borrowers who spent XXXX or more cumulative months in forbearance ; Any month spent in deferment ( except for in-school deferment ) prior to XXXX ; and Any month spent in economic hardship or military deferments on or after XX/XX/XXXX. In addition, months described above that occurred prior to a loan consolidation will also be counted toward forgiveness. '' As you can see on the official Department of Education website, it clearly states that what counts towards forgiveness is the first XXXX years in repayment, regardless of payment status in that timeframe ( such as " on time '', " forbearance '', " deferment '', " default '', etc. ) It is the timeframe ( number of months ) that counts towards forgiveness, NOT the number of payments. 

The loan forgiveness date should reflect XXXX years in repayment, regardless of what status I was in. 

The facts are clear. I was in repayment between XXXX - XXXX = 32 years. XXXX x XXXX = 384 months -- 20 years = 240 months- overpaid by 144 months ( 12 years ) -- 25 years = 300 months overpaid by 84 months ( 7 years ). 

I understand and agree that I did not make payments during the COVID forbearance and as such, there would be no payments to refund. However, there were several years of payments PRIOR to the COVID forbearance, after the XXXX years when the loans should have been forgiven for which I overpaid. 

I am entitled to a refund for the overpayments submitted when the XXXX - 25 years concluded. By maintaining a false forgiveness date that inaccurately discounts those months in repayment after the time forgivenesss should have been granted, Mohela is intentionally refusing a refund that I am rightfully entitled to. This date must be updated to reflect a true and fair accounting of my loan situation.