Consumer complaint received 2023-10-30
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (VA)

To Whom It May Concern : I am formally filing a complaint against MOHELA, my current student loan service provider. 
I have been participating in the Public Service Loan Forgiveness ( PSLF ) since XXXX and have been diligent in recording and reporting my public service employment. In XX/XX/XXXX, I noticed a change in the number of Qualifying Payments ( QPs ) for which I was receiving credit. When I reviewed my QPs more closely, I saw that the Special Waiver had been applied to my account and I had received credit for several prior forbearances. However, I also noticed that there was a three-month discrepancy between Loan Sequences 1, 4, and 7 and Loan Sequences 2, 3, 5, 6, and 8. Upon deeper review, I discovered that the difference was attributable to the months of XXXX, XXXX, and XX/XX/XXXX for Loan Sequences 1, 4, and 7. Assuming there may have just been an error, I submitted a new PSLF form on XX/XX/XXXX, verifying my public service employment. Three weeks later, my account was updated for my newly-reported employment verification, yet the 3-month discrepancy remained. My updated QPs were XXXX payments on Loan Sequences XXXX, and XXXX and XXXX QPs on Loan Sequences XXXX, XXXX, XXXX, XXXX, and XXXX. 
At this point I began calling MOHELA because I did not understand why there was a three-month discrepancy in XXXX. Indeed, there shouldnt be a difference : ( 1 ) I have always treated my loans as one unit, ( 2 ) I have never made extra payments on some loan sequences but not others, and ( 3 ) I have never requested a change in status on some loan sequences but not others.

MOHELA has been less than forthcoming with information. I have requested MOHELA provide me with proof, explanation, or a full record of documentation related to my loans and none has been provided to me. When I first called MOHELA about this discrepancy, I was told that Loan Sequences 1, 4, and 7 were in a part-time student deferment from XX/XX/XXXX until XX/XX/XXXX. I explained that was not possible because I graduated in XX/XX/XXXX and have not gone back to school since. As background, I first applied for an income-based repayment option in XX/XX/XXXX and made my first payment in XX/XX/XXXX. Separately, on this call, MOHELA also told me that I instead needed to call the Department of Education because they were responsible for my PSLF counts. I called the Department of Education, and was quickly told the oppositethat my student loan servicer was responsible, and I was directed to the Federal Student Aid website with that information. 
I called MOHELA again on XX/XX/XXXX. I finally was able to speak with a supervisor, XXXX. She clarified that in fact Loan Sequences XXXX, XXXX, and XXXX were placed in a post-enrollment deferment. I explained that I never asked for that. I explained that I would never have asked for only some of my loans to be in that status. The call ended because it was almost XXXX XXXX XXXX and I had been on the phone ( either on hold or with a representative ) with MOHELA since before noon. She encouraged me to look through my documents and emails to see if I could find anything and she assured me that someone would call me back. 
I did not receive a call back and so I filed written complaints through MOHELAs website on XX/XX/XXXX and sent a follow up on XX/XX/XXXX. Over a month has passed and I have never received a response. 
I went through my documents and found the documents that I have attached. These documents show that XXXX, my first student loan provider, placed me in a grace period upon my graduation. I did not ask for that status, was not presented with other options, and was never given an explanation of why I was placed in a grace period. Additionally, I found a letter from XXXX  XXXX XXXX dated XX/XX/XXXX, indicating they had made a change to my loan status for loan sequences XXXX, XXXX, and XXXX loans for which there is a discrepancy. I have attached that letter. Again, I did not ask for the change in status ( for context, I had my first child in XXXX XXXX loan status was the last thing on my mind ). 
Since discovering this document I have called MOHELA three separate times, spent hours on hold and asked that they change the status back to a forbearance like Loan Sequences XXXX, XXXX, XXXX, XXXX, and XXXX. Each time, I have been told that my issue is being researched and I have been given three different case numbers. I have been told it would take XXXX business days but that time comes and goes and I do not hear from anyone. I have also filed a formal complaint with the Department of Education. I have not heard from MOHELA or the Department of Education about this complaint.

MOHELAs promises to research my issue and their claims that I will receive a call back or response ring hollow to the point of deceptiveness. It is unacceptable that one must spend 6+ hours on the phonenearly an entire workdaytrying to speak to someone about a loan issue. I question whether MOHELA purposefully tries to frustrate borrowers with long wait times and non-answers in order to force borrowers to continue making loan payments when their loans should actually already qualify for PSLF. MOHELAs handling of my issue is unfair because I can not consider other career opportunities until I get this issue resolved. Had MOHELA been able to address my issue in a timely manner, I would be able to move forward with a potential new job opportunity.