Consumer complaint received 2023-04-20
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (AZ)

In XXXX I applied for the Public Service Loan Forgiveness ( PSLF ) Program after working for 3 years as a XXXX XXXX XXXX XXXX  at XXXX XXXX XXXX XXXX XXXX  XXXX XXXX. I did not know very much about the program as it was relatively new and nobody had been forgiven yet at that time. XXXX was the first year anybody qualified for forgiveness because the program began in XXXX and still had many aspects of the process and program that were unclear to both consumers and employees of XXXX XXXX XXXX Department of Education and Federal Student Aid. On XX/XX/XXXX I received a letter from XXXX stating : " We received the Public Service Loan Forgiveness ( PSLF ) Employment Certification form ( s ) you submitted and determined that the employer ( s ) listed below ( XXXX XXXXXXXX XXXX XXXX XXXX  XXXXXXXX XXXX ) is a qualifying public service organization ( XXXX ) for the purpose of PSLF. Begin date certified : XX/XX/XXXX, end date certified : XX/XX/XXXX. '' Based on receiving this letter, I allowed XXXX to move my loans from their current servicer at that time to XXXX. I then started on an income based repayment plan. I was nervous about doing this because PSLF requires this type of payment plan, but the amount I would be paying each month would not cover the interest I accrue each month at 7.5 %. I spoke to numerous people on the phone at XXXX who assured me that I would be forgiven after 120 payments in 10 years. Now, over 12 years after beginning work as a XXXX, I am still XXXX payments away from XXXX qualifying payments. In total, I have made XXXX payments, but only XXXX have been determined to qualify and XXXX are not deemed as qualifying. XXXX is not counting my employment from XX/XX/XXXX to XX/XX/XXXX because it is a for profit hospital. This is true, it is a for profit business. However, I was told verbally and in writing that it did in fact qualify me to participate in XXXX. I work with the same types of patients and do the same type of job at my current employer as I did at XXXX. I had no reason to question the letter I received from the XXXX or the validity of their claims that my employer qualified. 

I have made multiple appeals to the Ombudsman Group over the past 8 years, all denying my requests to count payments made while at XXXX from XXXX. On XX/XX/XXXX I filed a complaint with the Dept of Ed ( FSA feedback case # XXXX ). They were supposed to respond within 21 days. It took over 9 months and they denied my request for loan forgiveness and for Dept of Ed to count my payments from XX/XX/XXXX to XX/XX/XXXX. They responded as follows on XX/XX/XXXX : Dear XXXX XXXX XXXX, Thank you for contacting the Federal Student Aid Ombudsman XXXX. You expressed concerns regarding your Public Service Loan Forgiveness ( PSLF ) payment count. I was able to research your concerns. My summary follows.

You stated that where you were working was a qualified PSLF employer and that your payments while employed there should be counted towards your PSLF count. You assert that you have 134 qualifying payments towards loan forgiveness. 

Role of Ombudsman The Ombudsman Group is an independent office within the U.S. Department of Education ( ED ) and serves to assist borrowers in resolving issues pertaining to their federal student loans. We take into consideration the concerns, positions, and interests of all affected parties. We do not testify at formal judicial or administrative hearings. We review the facts of the situation and explore possible resolutions that are in accordance with applicable law. 

Research Results We were able to locate your loan records in the National Student Loan Data System ( NSLDS ). According to the NSLDS, you hold a Direct Consolidation loan in Subsidized and Unsubsidized parts that has been in forbearance as of XX/XX/XXXX. You currently have XXXX qualifying payments towards PSLF and you are on a 10 % Revised Pay As You Earn ( REPAYE ) plan. This loan is serviced by ED/XXXX 

We reviewed all documents relevant to your case, including the details of your correspondences with XXXX. It was found that XXXX received an Employer Certification Form ( ECF ) which XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX as a private not-for-profit organization. Their review concluded that XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX is a for-profit organization, even though your employer certified that it was a not-for-profit organization. For-profit organizations are never qualifying organizations for the purposes of the PSLF program. 

I also wrote a letter to XXXX on XX/XX/XXXX for which I was given the same denial of my payments counting towards forgiveness. I contacted XXXX XXXX XXXX XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Ultimately, his office provided me with the contact info for XXXX and the same correspondence XXXX had provided me previously denying my payments from XXXX. Ultimately, all of my appeals and attempts to resolve this with FSA, XXXX, my Senators, or the Ombudsman Group have been unsuccessful. 

I called XXXX XX/XX/XXXX since my loans have been transferred to them and was on the phone for over 2 hours, transferred to 3 different people with countless time on hold. They were unable to help with anything. They told me I had to speak with a supervisor at Dept of Ed. I have called Dept of Ed/FSA many times and supervisors are not available. They say they will call back within 24-72 hours. They either never call, or call at a time I am treating patients or otherwise unavailable. It is extremely difficult to get in touch with anybody that has the power or authority to be of real assistance, and even then, they have not been able to assist me with counting the referenced payments towards loan forgiveness. 

I have made far more than 120 payments over 12.5 years and would very much like this resolved prior to making any additional payments when COVID forbearance comes to an end. I feel I was grossly misled regarding the management of my loans and the PSLF program, and I was consistently given incorrect and inaccurate information and representation of how PSLF and loan forgiveness works. I made a huge financial decision in XX/XX/XXXX based on false information provided to me by my loan servicer. This in turn has had long lasting effects and currently leaves me with the undue hardship of continuing to be responsible for student loan payments that should have been forgiven over 2 years ago. 

I have made many, many attempts to resolve this issue and receive forgiveness for my student loans. Unfortunately, none of these actions have been successful. 

I am confident that the Consumer Financial Protection Bureau can finally help me with this issue. Please intervene on my behalf to so that I may continue with my public service and acquire forgiveness of my student loans through the PSLF program.

Thank you.