Consumer complaint received 2023-04-17
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (WA)

I am writing you today for assistance with Mohela regarding my Public Service Loan Forgiveness ( PSLF ) application. I have worked for non-profit organizations my entire career. This includes working with homeless teens, at a residential treatment center for young women in crisis, to now, working in higher education. In order to meet promotion requirements, I have had to complete both a XXXX and XXXX degree, which required me to take out student loans. 

In fall, XXXX, I consolidated my loans and applied for Public Service Loan Forgiveness ( PSLF ) with FedLoan. In XXXX, XXXX, my application was transferred to Mohela. I have XXXX eligible payments, but only XXXX have been confirmed and qualified. The other payments are from when I worked for XXXX XXXX XXXX ( EIN XXXX ) in XXXX, Colorado, from XXXX. XXXX was a 501 ( c ) ( 3 ) and completed IRS tax form 990 up until closing in XXXX ( see supporting documentation ). 

Under Employment Eligibility for PSLF, it states that the employer must be, A not-for-profit, tax-exempt organization under Section 501 ( c ) ( 3 ) of the Internal Revenue Code ( includes most not-for-profit private schools, colleges, and universities ). XXXX XXXX XXXX ( EIN XXXX ) was a 501 ( c ) ( 3 ) providing residential, therapeutic, and school services to young women in crisis. 

Mohela states that XXXX XXXX XXXX is undetermined as a qualifying employer with PSLF. This means that none of my payments made while employed at XXXX currently qualify for PSLF. This will not change until Federal Student Aid has changed XXXX status to a qualified employer. I have reached out to Mohela, asking what supporting documentation is required to change this determination, for over a year. They have not been able to provide me with a list of documents and can not explain why it is still under review, years after the Public Service Loan Forgiveness program begun. I have had to guess which documents will meet their requirements and wait for them to be processed to determine if they are sufficient. 

I recently spoke with a PSLF Specialist at Mohela. They need to determine if XXXX is a qualifying employer, which she said will take an additional six to twelve months. If they determine XXXX is a qualified employer, it will take an additional 90 business days to qualify my payments. Best case scenario, I am looking at an additional year before being approved and my loans forgiven, and then another 90 days for them to be discharged. If they require additional documents, it could mean even more months of waiting and guessing, probably end of XXXXbeginning of XXXX. This means at the very least, it will take almost two and half years from PSLF application to discharge of my loans, possibly more. 

For privacy reasons, I have included the Tax form 990 from XXXX the XXXX XXXX XXXX filed, along with a XXXX XXXX article with this complaint. I can send additional documentation, if needed. I have given the above documents to Mohela, along with W-2s, IRS tax transcripts, an employment certification form signed by the XXXX XXXX, and SSA income earnings statement, all from XXXX.