Consumer complaint received 2022-03-17
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: AES/PHEAA (CA)

I am working on PSLF through Fedloan Servicing. 

I submitted my verification paperwork and received an email from them on XX/XX/2021 stating paperwork had been received and was under review. 

On XX/XX/2021, I was told my employment did not qualify me because I work XXXX hours per week. Per Fedloan Servicing, their policy is that full time work is considered XXXX hours or more. However, my employer views anything under XXXX hours as part time and on the form, marked my employment as part time, leading to my rejected application. 

I called Fedloan to ask about the issue and a representative ( do not recall the name of the person ) who said that I can submit the paperwork myself. She mentioned that this happens all the time and to fix the problem, you simply self-certify your employment. I did this and the agent walked me through the application and I submitted again. It was received by Fedloan on XX/XX/2021. 

3 months later, XX/XX/2021, my paperwork was rejected. This time, it was rejected on the grounds of a box not being correctly checked ( stating that I am still employed with the company ), though when I called a representative, they reviewed my application and noted that it actually was checked. They said that this would be escalated and reviewed and I would hear back in 7 days. It has been 1 month and I have no word back. 

I owe quite a bit of money and have made employment decisions based on information I was provided by Fedloan ( mainly, that my employment actually is qualifying ). I could have sought and taken other jobs this entire time ( i.e. could have gotten another job that would make me qualify for PSLF ) but the process has been dragged out, strung along, and I have received conflicting information that has very important financal consequences associated with it. 

I took my current job after reviewing the PSLF qualification website which states " For PSLF, youre generally considered to work full-time if you meet your employers definition of full-time or work at least XXXX hours per week, whichever is greater. '' ( https : //studentaid.gov/manage-loans/forgiveness-cancellation/public-service # full-time-employment ). The important word here is " or '', as well as the phrase " whichever is greater ''. The " or '' implies either situation can be true, but then the phrase " whichever is greater '' is unclear. Per my reading of " whichever is greater '', I see that as Fedloan will err on the side of the individual for qualification purposes. If this is incorrect, then the wording needs to be updated and clarified, otherwise what is the purpose of the word " or '' and the use of multiple scenarios for possible qualification? The phrase " whichever is greater '' is generally confusing and can lead to major implications given lack of clarity. If the intention was not for an either/or situation, then this should be more clearly stated. I feel that because my employment and decision in the job market has hinged on this singular phrase, my employment should be honored, even if this was not their intention, due to the lack of clarity. 

I have been misled by Fedloan along the way by multiple representatives and am worried about my finances to the extent that I have stress and anxiety daily with the unknown of my situation. I also worry that even if something is resolved now that I will have to fight this battle every year. I appreciate any help that can be provided. Thank you.