Consumer complaint received 2023-03-01
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (CA)

I am writing about my experiences with the Public Service Loan Forgiveness program. I have worked full-time in higher education for over ten years. I submitted my first PSLF application in XX/XX/XXXX. I made my XXXX qualifying payment in XX/XX/XXXX. One year later, on XX/XX/XXXX, my qualifying payment counts were finally updated to indicate I was eligible for forgiveness. To get to this point, I had to call XXXX XXXX XXXX times, spending many hours on hold. I also had to submit written documentation of payments for XXXX months that were not counted appropriately. Earlier in XX/XX/XXXX, I also received notification that my loan servicer would change to MOHELA in XXXX, XXXX. 

On the day the XXXX website indicated I was eligible for forgiveness, I called XXXX for an eighth time. After spending two and a half hours on hold, I was able to speak with a representative. I asked them if my loans would still be transferred since the website indicated I was now eligible for forgiveness, and I asked how long it typically took to process forgiveness. I was told that there was nothing I could do, that my loans would be transferred no matter what, and that processing forgiveness was now in the hands of the Department of Education. I was also told that the Department of Education had six months to approve forgiveness, but beyond that, there was no way to predict when my forgiveness would be processed. This response worried me greatly, as I was concerned that the transfer to MOHELA would mean a significant delay in forgiveness processing. 

I write to you now six months after that phone call. My loans were transferred to MOHELA in XXXX XXXX. My correct payment counts showed up on their website relatively quickly, and I held out hope that my forgiveness would be processed soon and I could be rid of this albatross around my neck. Over the past six months, I have called MOHELA four times, spent over five hours on hold, and received almost no helpful information whatsoever. I called in XXXX to ask if any additional information was needed from me, and I was told they had everything they needed. At the end of XXXX, two months after the transfer and having heard nothing about my forgiveness application, I called again, asking if there was anything I could do to move the process along. I was told no. My most recent call was on XX/XX/XXXX. I asked if the information I was given before, about the Department of Education having six months to approve forgiveness, was correct. The MOHELA agent told me that while it takes at least 90 days, she could not provide a maximum amount of time it may take. She also told me that the transfer from XXXX to MOHELA caused a delay in processing. I asked if there was any way for me to contact the Department of Education directly, and she said no. The agent told me that applications for forgiveness were being processed on a first in, first out basis, based on when a person made their 120th payment. She also told me that they did not even submit my application to the Department of Education until XXXX, despite the fact that my loans were transferred to MOHELA in XXXX. After this phone call, I read on an internet forum where PSLF applicants discuss their experiences that this is not at all the case. There were many posters on this forum who made their final payments AFTER my own, and submitted their PSLF application long after I did, yet they received forgiveness before I have. 

In summary : I made my 120th qualifying payment for Public Service Loan Forgiveness eighteen months ago. The fact that public servants have to wait this long for the government to fulfill a promise is nothing short of a national embarrassment. The administration of PSLF is shockingly bad. The process is completely opaque and there is no accountability. Since I made that last payment in XXXX of XXXX, I have spent hours of my life trying to get information about the status of my application from servicers who have repeatedly given me inaccurate information, if they provide any information at all. The student loan servicers dont seem to have any interest in actually helping people get their loans forgiven. I am writing to you for help in finally getting my own loans forgiven, but also to add another data point in the larger picture of the debacle that is the Public Service Loan Forgiveness program. My story is not unique.