Consumer complaint received 2024-03-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (NH)

Over the past 9-months I have attempted to work with my student loan servicer, MOHELA, to resolve an issue regarding my incorrect PSLF payment count and the failure of MOHELA to properly adhere to the preexisting and new Public Service Loan Forgiveness rules regarding lump sum payments made with XXXX XXXX XXXX XXXX earned through XXXX XXXX. I have quoted the rules to customer service representatives and MOHELA supervisors without any success. 

I spoke with ( 2 ) MOHELA supervisors on the phone in XXXX and XXXX of XXXX and with several customer service associates on multiple occasions in XXXX who verbally informed me that they were not able to count my XXXX XXXX XXXX XXXX lump sum payments due to the fact that they were made to other loan servicers. I was told by the Department of Education that this was not true, and that the servicer is responsible for counting these payments, but again this confirmation was over the phone. Each time I request a response in writing, they require that I call and therefore I have no documentation to provide as evidence of what was communicated during these calls. 

In my twenties, I worked for numerous non-profits and a government agency because of a desire to serve others, and with the understanding that I could earn student loan forgiveness through the Public Service Loan Forgiveness program. I continue to be employed by the USDA ( NRCS ). 

I also served ( 3 ) terms with XXXX in XXXXXXXX XXXX and in XXXX. I made ( 2 ) lump sum payments toward my student loans. The first for a total of {$2400.00} on XX/XX/XXXX and the second for a total of {$1400.00} on XX/XX/XXXXXXXX These payments were made to XXXX and FedLoan Servicing, respectively. I was not employed by a qualifying employer at the time of the XXXX payment, but I used an award earned through XXXX service. MOHELA claimed it was not a valid payment because I was not working for a qualified employer at the time ( I was working two jobs that XXXX one part-time job at a public library and the other as a cook at a restaurant ). I explained that the award is issued after service is complete, and XXXX alums may not work for a qualifying employer at the time they receive the XXXX XXXX XXXX. They rejected this point of argument. 

The other payment I made while working for a qualified employer and making monthly payments. They did not count this lump sum payment and both the customer service representatives I spoke with and the ( 2 ) supervisors I spoke with did not understand how the XXXX XXXX XXXX lump sum payments were assessed. They claimed that because the payments were made to other loan servicers, they were not able to count those payments. 

In XXXXXXXX XXXX I requested a payment recount and escalation with MOHELA, but I'm not seeing any indication of that in the correspondence. I spoke with a supervisor about the escalation results on the phone sometime that summer. I attached two separate messages I sent ( " PSLF Correspondence '' ) and the response I received was that I was asked to call MOHELA. I estimate I called MOHELA at least six times regarding this issue. They also rejected my XXXX XXXX XXXX documentation uploads ( they are listed as 'Canceled ' in my document tab ). 

Lastly, I have attached and highlighted a document from the Consumer Protection Bureau regarding XXXX lump sum counts. I strongly suspect that MOHELA does not count these, period, based on anecdotal evidence. I am also unable to see any of my past payments made to other loan servicers prior to MOHELA and believe this information should be available to all borrowers. 

Also, there is no direct statement about needing to be employed by an eligible employer at the time you make this XXXX XXXX XXXX payment. But that is how it has been interpreted by MOHELA, it seems. I had many frustrating calls with MOHELA about this. That said, they refuse to count my lump sum award ( s ) regardless. And, if this is the case that an XXXX XXXX needs to be employed by a qualified employer at the time they make the lump sum payment with the XXXX XXXX XXXX they receive after their term of service, my argument is that this is impractical and the rule should be revised or re-interpreted by issuing a national directive. It is not guaranteed that you will be employed by an eligible employer after you complete XXXX service and apply your XXXX XXXX XXXX to your student loans. 

I have since filed a complaint with the XXXX XXXX XXXX and have written my Congressional delegate to request that my case is elevated or more closely examined. I have also filed several complaints with FSA regarding this matter and requested escalation to the Ombudsmans Group to resolve the issue.