Consumer complaint received 2019-10-28
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: AES/PHEAA (DC)

I am filing this complaint against Fed Loan Servicing for refusing to honor 15 payments made towards Public Service Loan Forgiveness ( PSLF ). 

I have had federal student loans since XXXX. Between XX/XX/XXXX and XX/XX/XXXX, I worked for a nonprofit organization and was making monthly payments that counted towards the Public Service Loan Forgiveness Program. Under this program, I would make 120 payments towards my loan so long as I worked full time as a teacher, at a nonprofit or for the government. During that time, I made 15 payments that counted toward loan forgiveness. My loan servicer at that time was XXXX XXXX, and I have attached the payment history that shows the payments made during that time ( see page 10 ). 

In XX/XX/XXXX, I applied for loan consolidation. On XX/XX/XXXX I received a letter from Fed Loan Servicing ( the new servicer ) that stated that my consolidation was almost complete ( see attached letter ). The letter indicated I expressed interest in the Public Service Loan Forgiveness Program and advised me of my payment plan options under this program. Nowhere in the letter was I informed that I would need to restart my 120 payments from zero due to the loan consolidation. 

On XX/XX/XXXX I received a letter from Fed Loan Servicing informing me that the consolidation was complete ( see letter attached ). Again, I was not informed that my previous 15 payments toward PSLF would not be honored because of my loan consolidation. 

On XX/XX/XXXX and XX/XX/XXXX I called Fed Loan Servicing to inquire how many payments were still needed for me to meet the 120 required under PSLF. During both of these calls, I was informed that any payments made to XXXX XXXX do not count toward PSLF because I consolidated my loans. I was never informed of this in the 2 letters I received from Fed Loan Servicing. Additionally, I have called Fed Loan Servicing on several occasions between XX/XX/XXXX and XX/XX/XXXX, and have continuously been told my my prior payments do not count. 

Since XX/XX/XXXX I have made an additional 63 payments toward PSLF ( see attached letter, note the letter was sent in XXXX and I have made additional payments since then. The letter indicates I made 60 payments ). 

I believe that Fed Loan Servicing is engaging in abuse and unfair loan servicing practices. I have made payments towards my loan and worked for a qualifying PSLF program employers in good faith. I was under the impression that my payments would count, and I was not informed until after the consolidation that they would not count. Had I known this, I never would have consolidated my loan. I am sure I am not the only borrower who is being taken advantage of by Fed Loan Servicing. In this situation, they are committing financial abuse against me as a consumer. 

As a resolution, I would like my previous 15 payments when I worked full time for a nonprofit from XX/XX/XXXX to XX/XX/XXXX, to count towards my PSLF, increasing my qualifying payments from 63 to 78 payments.