Consumer complaint received 2022-09-22
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (TX)

On XX/XX/XXXX, I submitted my consolidation application to the Department of Education. At the time, FedLoan was an option to consolidate with for the Public Service Loan Forgiveness program. I selected FedLoan as my servicer and my FFELP loans from XXXX were transferred to FedLoan. My remaining loans are direct loans and some were previously consolidated in XXXX. I instructed to consolidate my FFELP loans so they would be eligible for forgiveness. I was informed that the other direct loans from XXXX would automatically be transferred to FedLoan for PSLF processing. 

On XX/XX/XXXX, I contacted FedLoan, XXXX, XXXX XXXX and the Department of Education concerning my loan forgiveness and status of my loans being transferred for the Public Service Loan Forgiveness process. FedLoan informed me that I meet my 120 payments towards forgiveness and they wouldn't transfer my loans to XXXX because the Department of Education paused my transfer due to them being forgiven. I spoke to XXXX who informed me to submit a PSLF application to them since my remaining loans would be transferred to them since FedLoan is no longer handling the PSLF program. The representative stated I wasn't in XXXXXXXX XXXX system to provide any information concerning my loans. At this time, the representative with XXXX XXXX can't locate information about the transfer. FedLoan stated they won't be receiving the remaining loans although I submitted a ADD on Loans form for them to add the other loans with XXXX to the loans that were forgiven. 

On XX/XX/XXXX, I contacted XXXX about the status of my loan and was told that the Department of Education submitted a payoff inquiry on XX/XX/XXXX and XX/XX/XXXX. A XXXX representative informed me that the amounts were provided both times but the funds have never been released to payoff the loan for it to be transferred to FedLoan. She couldn't provide any information on why a follow-up wasn't sent to Department of Education XXXX On XX/XX/XXXX, I contacted the Department of Education line about the status of my loans being transferred for PSLF program and explained that my loans with XXXX were forgiven because they were transferred to FedLoan for processing. The representative confirmed that the payoff request were sent but couldn't locate any more information as to why my other loans weren't sent to FedLoan for processing or any other account details. The representatives couldn't provide me any information on if my loans would be transferred to FedLoan or XXXX so they can be forgiven. 

The Department of Education failed to complete the process for my loans with XXXX to be transferred. At this point, I haven't been able to get any information on why my loans weren't transferred to FedLoan so they could all be forgiven together. I'm not able to get any information on if my remaining loans are going to be transferred to FedLoan or XXXX for the final forgiveness. I feel that I shouldn't be penalized and have to wait longer for forgiveness when the Department of Education failed to complete their part in the process. I haven't been able to speak to anyone about what is going to happen. All activity on my forgiveness have ceased other than my loans with FedLoan being forgiven this month.