Consumer complaint received 2024-10-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: FL

Complaint narrative:
I am deeply frustrated and concerned regarding the handling of my student loans and PSLF ( Public Service Loan Forgiveness ) recounts by both XXXX  and Mohela. Despite following all the necessary steps, I am facing serious discrepancies that are affecting my financial well-being.

PSLF Certification Issues : My payment history for PSLF is showing multiple years as uncertified, with the most recent form on file listed as XXXX. This is incorrect. I have submitted PSLF certification forms in XXXX, XXXX, XXXX, and XXXX, but none of those are reflected in my account. This gap in records is impacting my eligibility and progress toward forgiveness. 

Forced Consolidation : I was told by Mohela that I had to consolidate my loans to continue pursuing PSLF forgiveness, despite my understanding that this shouldnt have been necessary. I followed their advice and consolidated, but now Im being told I owe over {$700.00} per monthan amount I simply can not afford. Worse, despite XXXX indicating that my loan consolidation, IDR ( Income-Driven Repayment ), and PSLF forgiveness applications are under review or pending, Mohela has essentially reset my progress.

Further, my loan consolidation application, new IDR application, and refiled PSLF certifications are still under review or pending ; therefore, how can I even be required to make payments and continue to accrue interest on a loan consolidation that hasn't made it through the review process? 

Lost Credit for Past Payments : Since I graduated in XXXX, Ive made 15 years of payments, but those have been wiped out, and my current balance is higher than what I originally borrowed. I have already paid back the amount I initially borrowed from the federal government, yet now I am being told I could owe another {$250000.00}. This new balance is more than double what I originally borrowed. How is it possible, or constitutional, for an American citizen to be charged nearly {$300000.00} in " interest '' on loans totaling less than {$95000.00}? 

Health Impacts : This situation is having a severe impact on my health. Due to the uncertainty and immense stress caused by the ongoing issues with my student loans, my XXXX XXXX  has skyrocketed. My doctor has instructed me to reduce stressors in my life, and this is my number cause of stress. 

Impact on Credit and Conflicting Information : My credit has been damaged due to the consolidation, and my loans are now being marked as ineligible for PSLF, even though I specifically consolidated under an IDR plan for that purpose. Ive lost over 15 years of repayment credit toward IDR plans, and interest has been accruing at an alarming ratenearly {$2000.00} since consolidationon loans that shouldn't be accruing interest due to ongoing litigation. 

Violation of Constitutional Rights : The current situation may violate my constitutional protections. By being forced to pay over {$250000.00} on loans that originally totaled {$93000.00}, despite having already made 15 years of payments, I believe this raises serious concerns under the Due Process Clause of the XXXX and XXXX Amendments. The government and loan servicers are depriving me of financial stability without proper justification or reasonable procedures. Furthermore, the Contracts Clause of the Constitution may also be at issue, as the terms of my loan seem to have been unilaterally changed over time in ways that are exploitative and unfair. The state litigation against student loan forgiveness programs also seems like it would interfere with my rights under Article 1, Section 10 of the contracts clause.

Since I borrowed directly from the federal government, its inconceivable that I should owe exponentially more than I borrowed, which undermines the very nature of fair contractual obligations. 

Violation of Consumer Protection Laws : I believe this situation also violates several key consumer protection laws. Being told that I must consolidate my loans under misleading information and then facing inflated balances with unreasonable interest constitutes a form of predatory lending or fraudulent misrepresentation. This runs afoul of laws such as the Truth in Lending Act ( TILA ), which requires transparency and fairness in loan agreements, and the Fair Debt Collection Practices Act ( FDCPA ), which protects borrowers from abusive or misleading practices by loan servicers. Additionally, charging over {$250000.00} in interest on loans for education funded by taxpayer dollars, while also damaging my credit in the process, violates the principles of fairness and transparency that these consumer protection laws are designed to uphold. 

I believe that I have been misled by Mohela, whose representatives insisted that consolidation was the only path forward for PSLF. Additionally, I am consistently receiving conflicting information from different parties, leaving me uncertain about my status and future obligations. 

I urgently request that this situation be thoroughly reviewed and rectified. I will not be paying exorbitant amounts toward a balance that should have already been resolved through my years of public service, inclusive of my role as a first-responder to the Pulse attack in XXXX, which was onXXXX of the deadliest mass shootings in American history. The interest is usuary which is illegal in XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation