Consumer complaint received 2019-02-19
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (MI)

I am eligible for the Public Service Loan Forgiveness program  and submitted the initial application to enroll in the program. I was switched to XXXX XXXX for my servicer in XX/XX/XXXX. I have consistently submitted payments and updated my employment certification forms, but in XX/XX/XXXX I noticed that my account showed only 9 qualifying payments had been made under the PSLF program. I called XXXX XXXX  and stated that I had 6 1/2 years worth of payments that were missing from that number. They told me that my previous loan servier, XXXX, never sent over the information. I called XXXX who stated they did in fact send it, but would be willing to submit the information to XXXX XXXX again. I received confirmation on XX/XX/XXXX that XXXX XXXX received the necessary information from XXXX and they would be in process of verifying 66 loan payments, but it could take up to 6 months. 

So today, XX/XX/XXXX, I called XXXX  XXXX because it has been 6 months and it still shows only 9 payments have been made. I was told that they actually don't have timelines that they expect to complete this process and it could take 1-2 YEARS to verify some accounts. I was told they have over half a million accounts that they are processing with limited staff and I just need to be patient. I was told the requests are processed in the order they were received. So I asked if they could tell me where I stood in the line of people, whether there was a number in a queue, and their response was " no, I don't know where you are in line ''. I explained that this is incredibly frustrating and concerning that 6 years worth of payments are essentially being held hostage because their company can't process anything in a timely manner. I asked if this is why only 1 % of people are actually receiving forgiveness, because they are taking so long to process information? I was told the actual application for forgiveness is a separate process that involves my account being reviewed AGAIN, and that could take up to 6 months. 

So now I sit here with 6 years worth of payments not being accounted for, being managed by a company who can't give me any information about where I stand or how long it could take to verify all those payments and all I can do is wait. Wait anywhere from 6 months to 2 YEARS, plus the time of processing the actual application when I am eligible. 

This is extremely poor management of such a significant program. This company should be held liable for their long wait times, lack of communication, poor customer service, and conflicting information. It is a disservice to every single person in this program that XXXX XXXX is the ONLY company that manages this program. There are multiple servicers, we should have the option of more than just this company. 

I feel helpless and frustrated that there is literally nothing I can do about this except wait even longer until they decide to get to my account. I qualify in every sense of the word for PSLF, I have continuously made payments on time and completed every necessary document and the only thing I get in return is a vague suggestion to just keep waiting. 

This is unacceptable and something needs to be done for the half million applicants like me who must be going through the same thing.