Consumer complaint received 2023-01-07
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA (TX)

I had an FFEL loan with XXXX which was transferred to XXXX. I requested federal direct loan consolidation on or about XX/XX/XXXX with MOHELA for purposes of PSLF loan Forgiveness. For the record, I have worked for three qualifying employers since XXXX. On or about XX/XX/XXXX MOHELA consolidated my loan. Nevertheless, they sent me a rejection for PSLF loan forgiveness the following week on or about XX/XX/XXXX stating that I had FFEL loans, even though they serviced the new consolidated federal loan. I called MOHELA and my loan was resubmitted on or about XX/XX/XXXX for processing. MOHELA approved an IDR around the same time. At the time they resubmitted my PSLF paperwork, they agreed that they had mistakenly rejected PSLF loan forgiveness and that I could expect forgiveness with the " 60 days ''. 

I contacted MOHELA via email through their secure system to check on the status of my PSLF loan forgiveness. I contacted them on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX. On average it has taken the weeks to respond to messages. I have only been able to get through to them a few times since XXXX. Each time I have been told that it will take either " 60 days '' or " 90 days '' for the to confirm PSLF loan forgiveness. The last time I spoke with them over the winter break, I was told that they had to " re-process '' my form in XX/XX/XXXX, and that I could expect something by " XXXX ''. When I asked why they had to re-process the form, the phone went dead. It took me at least 20 minutes to get someone live on the phone during this call ; I was placed on hold for another 20 minutes or so, and then when I asked a question to follow up on what I was told, the phone went dead. This is incredibly frustrating, and I did not feel like calling again to be placed on hold another twenty to forty minutes. 

There have been no updates to my account MOHELA states that they are showing " No payments made in the last 36 months '' although I have made payments consistently between XXXX until XX/XX/XXXX when I requested consolidation. I have paid between {$550.00} and {$600.00} over the course of that time period, easily qualifying for PSLF loan forgiveness. However, MOHELA has yet to credit a single payment for me during that time period. My status continues to be shrouded in secrecy, and it is frustrating beyond belief. 

MOHELA continues to show that I have a balance of over {$47000.00}. I borrowed {$38000.00} for school, I estimate that I have paid over {$110000.00} on the {$38000.00} loan and without PSLF loan forgiveness I would have to pay over {$150000.00} on a {$38000.00} loan. That is simply unacceptable. I have been a public servant for most of my life and I have done my part to qualify for PSLF loan forgiveness. MOHELA 's handling of my loan is nothing short of shameful. It has been 197 days since I first requested consolidation with MOHELA for purposes of PSLF. It seems that would be more than enough time to review my paperwork and grant PSLF.