Consumer complaint received 2023-06-12
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (MS)

My complaint is regarding both MOHELA and the Department of Education. I was eligible for loan forgiveness through XXXX on XX/XX/XXXX. I submitted my final application to MOHELA and was told this could take XXXX business days. Fortunately, it was processed by MOHELA on XX/XX/XXXX. I spoke to MOHELA via chat several times throughout this process. They made it sound like once they processed that application, and my account showed that XXXX payments were made, I would be forgiven. But my loans havent been forgiven, and now when I call Im told that my application is with the Department of Education and I just have to wait for them to review and approve my application, which could take an additional XXXX business days. I was never told about this additional wait time by MOHELA prior to XXXX. NOW its on their website, but this is a new addition. When I call MOHELA they say theres nothing they can do and to call student aid.gov. I filed a formal complaint with student aid.gov on XX/XX/XXXX because of this egregious wait time, and also just to receive some sort of confirmation that they have actually received my application from MOHELA, and that its in a queue somewhere for review. I received an email stating I would receive a response within XXXX days after filing the complaint. Today is XX/XX/XXXX, and I have not received a response. So today I called the ombudsman line for XXXX The representative kept referring back to MOHELA. I explained that MOHELA said they couldnt help me and says to call them. Then she told me they dont even have a timeline for reviewing the applications ( despite MOHELA website saying XXXX business days ), and that some people have waited XXXX years for them to approve their application. She told me that she could not even verify whether or not they had received my application from MOHELA, she could not tell me if there was any sort of process for reviewing them, and she certainly could not find out where my application was in the review process. No business should be able to operate this way, or government agency. When I graduated from school I intentionally sought out employment in public service in order to participate in this program. I was told that if I worked in public service and made XXXX qualifying payments ( 10 years ) that my loans would be forgiven. I read the rules. My case is a straightforward XXXX years of payments. My eligibility is not based on any of the special waivers in place. I feel that I was intentionally misled about this process, especially by the Department of Education. Its been almost 6 months since Ive been eligible for forgiveness. I have XXXX children under XXXX and have been offered a job outside of public service that would be life changing for my family. But XXXX unable to accept it because under the XXXX rules, you have to remain employed at your qualifying employer at the time of forgiveness. So essentially, my life, and my familys are being held XXXX by a process they arent even able to explain to me. They arent even able to tell me what the review process looks like or give me a timeline. We are just supposed to remain on hold indefinitely while MOHELA and Department of Ed point the finger at each other.