Consumer complaint received 2022-11-02
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (PA)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, PA XXXX ( XXXX ) XXXX XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Dear CFPB : I am writing this letter to register a formal complaint against FedLoan and its mishandling of the Public Service Loan Forgiveness ( PSLF ) and Temporary Public Service Loan Forgiveness ( TEPSLF ) programs with me as a borrower. Throughout the process, FedLoan has made numerous errors and provided false information regarding my eligibility for these programs. 

I have two sets of Parent PLUS Direct Loans serviced by FedLoan. I took out the first one in XXXX and enrolled in the PSLF program. As shown in the first attached document, I have been employed with XXXX XXXX XXXX XXXX, a qualifying public service employer, since XXXX. I submitted the proper Employment Certification forms, was approved for entry into the PSLF program, and continue to be approved for it. As the document also shows, that approval has since expanded to include the TEPSLF. I have faithfully made every required payment on time since XXXX. 

The second attached document from the FedLoan website shows the XXXX XXXX XXXX. It displays items including qualifying payments made, qualifying payments remaining, and expected forgiveness dates. This tracker is a recent addition to their website. I relied on this document to be accurate, as the average consumer would. In all the previous years, we relied upon the customer service support to guide us with accurate, competent information, which they did not do at all. That is why we are where we are today. 

Over the past 10 years, I faithfully checked several times each year with FedLoan to confirm my enrollment in the PESLF/TEPSLF programs, the terms, and that I was meeting all the requirements. Each time, they told me I was properly enrolled and on track for loan forgiveness. As the attached FedLoan documents show, I have made significant progress in the program, with my first forgiveness eligibility date coming up in XXXX. 

FedLoan now claims that I am not actually qualified for the PSLF or TEPSLF programs. They said I was not on a qualifying repayment plan because I had not consolidated all of my loans at the beginning ( this was exactly the opposite of what they said before ). They told me I would now have to consolidate all the loans, lose all my accumulated months of qualifying PSLF/TEPSLF payments and start over at XXXX. 

Bottom line : it is highly illegal and unethical for FedLoan to have admitted me into PSLF and TEPSLF, documented my monthly progress for 10 years, and now claim that I do not qualify for the programs. This is an abuse of hard-working middle-class Americans. 

In a series of calls last XXXX, we spoke with three FedLoan supervisors including : XXXX ( XXXX XXXX XXXX ), XXXX ( XXXX XXXX XXXX ), and XXXX ( XXXX XXXX XXXX ). Each was confused about the true PSLF/TEPSLF requirements. They provided differing, contradictory stories about program qualifications. XXXX was the first employee in 10 years to admit that FedLoan provided substantial false information to us. Based on our case, he said he was going to escalate it to his superiors. However, we have not heard back from him, and I dont know if we ever will. 

Over the past year, I have also written letters to our senators, to the XXXX XXXX Attorney XXXX XXXX, PHEAA, and the U.S. Department of Education FSA Ombudsman Group. I have never received any resolution or reasons as to why this happened to me. We have also spoken with representatives from the XXXX XXXX XXXX XXXX They said they are also looking into this issue, as we are in a very small group of borrowers caught up in this mismanagement. 

Even though in the last few months, there has been clearer language regarding PSLF and TEPSLF requirements, there was not in all the previous years when we were admitted into these progams. They should never have admitted us to these programs if we did not meet the requirements. 

On loan sequences 1, 2, 3, and 6, we are now within 25-49 payments of total loan forgiveness under the TEPSLF program to which we were admitted 11 years ago. We should not lose all of these credits due to FedLoans incompetence and lack of correct information. If we were not qualified for this program, why did they ever let us into it in the first place? 

We are now nearing retirement. As we were planning on this loan forgiveness, this places us in a financial dilemma. We based our retirement planning on the scenario of loan forgiveness around XXXX. We also based our most important financial and employment decisions on this. I remained with a public service employer as a XXXXXXXX XXXX XXXX XXXX XXXX because I was assured the program would be here for me in the end. 

In summary, FedLoan has grossly mismanaged the PSLF and TEPSLF programs. The agency has acted in an incompetent, deceptive manner. We are asking you at the Consumer Financial Protection Bureau to intervene on our behalf to ensure that we are able to keep our accumulated months of qualifying payments as shown in the attached documents, to continue in the XXXX  program, and to have these loans forgiven as it was stated they would be by the payment tracker on our account. Please contact me as soon as possible regarding next steps in this process. 

Sincerely, XXXX XXXX XXXX