Consumer complaint received 2025-01-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: NC

Complaint narrative:
MOHELA has been the servicer for my wife and myself and out Direct consolidated loans that were consolidated back in XXXX. We attended an out of state University XXXX and graduated with XXXX XXXX and huge student debt as a result of the fact that the University refused to consider us as in state residents as had originally been promised- out of state tuition was at least XXXX times that of instate but we had no choice. 

We have been working toward PSLF ( public service loan forgiveness- work in non profit public service qualifying job and make XXXX consecutive payments ) since the very beginning- I had my first application denied in late XXXX XX/XX/XXXX was the beginning of the program- we were in the very first batch of PSLF applications able to be reviewed. As is widely known as fact- Like XXXX % applicants were were declined due to this or that rule. There was XXXX  oversight or guidance over this XXXX XXXX month stretch. We made payment after payment in consolidated loans ranging from {$400.00} early on- to {$520.00} a month as the payments were income contingent. We never missed a beat. We were making $ XXXX a year when we started repayment. Our entire careers have been fixated on PSLF as a result we have been in non profit sector jobs since XXXX our earning potential has been truncated by this program and our pursuit of it. 

With the Biden administrations focus on student loans- the enacting of TEPSLF Temporary expanded ) We reapplied- and as of late XXXX our then servicer XXXX XXXX XXXX XXXX of XXXX on our balance. This represented my portion of the balance even though XXXX XXXX and I had taken out exactly the same amount. We did not find out and were not told until XXXX that XXXX XXXX also had to submit XXXX applications- and that this was the remaining balance now XXXX $ XXXX. She completed the required forms, jumped the hoops ( not an issue as she had put in the time ) and we were told every single time we called in XXXX by MOHELA that " all looks good, just keep waiting. It's in FSA 's hands now ( Federal Student Aid ) ". We regularly received conflicting information we were placed on endless holds, our calls were dropped. 

We received a forgiveness letter from FSA on XX/XX/XXXX indicating that the remainder of our loans ( $ XXXX ) were to be forgiven- the letter states that they await MOHELA to process this and discharge our loans. MOHELA have said that it " XXXX not in their hands " Any day now, just keep waiting for FSA- ''. Since that letter ( correspondence I had to submit to MOHELA myself and they denied for XXXX weeks they even had ) we have had to call MOHELA every other month to extend forbearance until such time whomever or however they decide to XXXX  the balance and we are deemed free form the predatory clutches of MOHELA. Nothing has happened since XX/XX/XXXX and I have thought for months something must be askew. 

TO THE FINAL STRAW and reason for me seeking you : We called XX/XX/XXXX as our forbearance was set to end again XXXX we waited on hold XXXX hours and were curtly told that " there's nothing we can do you are in forbearance until XXXX call back closer to your loan due date and we will reinstitute the forbearance '' ( XX/XX/XXXX ). 

We called yesterday XX/XX/XXXX and held for XXXX hours combined. The only time we actually spoke with a live person after holding XXXX hours- ( XXXX XXXXouldn't help usXXXX didn't have the 'access ' she needed to fulfill our request then had to transfer our call ) phone disconnected after XXXX minutes on their end- they disconnected the call- We called back at XXXX XXXX held XXXX more hours- no answer. No option to put in call back request- slave to sitting waiting for the hold to end and speak to a live person. Didn't happen. We hung up at XXXX as we actually have lives. 

We called again this morning XX/XX/XXXX right before XXXX held for XXXX hours- we were told by MOHELA XXXX you have no more forbearance to be applied- you have a payment due XX/XX/XXXX. '' They stated forbearance was " up to FSA you need to call them about it we cant do anything- you have a payment due XX/XX/XXXX. '' We plead for more info- got placed on hold at least XXXX  times during which they stated " I'm conferring with my mentor and asking how to proceed ''. She finally came back on- bottom lined that " it's not in their hands and we have a payment due XX/XX/XXXX. '' We asked that she put us to a supervisor- she FLAT OUT STATED NO " You need to call FSA ''. She refused to transfer the call. We asked again to be transferred- she again declined. 

We then called FSA about XXXX XXXX got someone quickly who transferred us to a specialist- she was informative and basically stated that based on the real time information they could see that MOHELA did not have XXXX XXXX in their system and was not correctly reflecting the status of our loans in the registry/ database as they had been joint consolidation loans- they only reflected my info- that her PSFL application essentially had been dropped in XXXX and that this has to be the issue as to why the loans have not been XXXX % discharged. We were told by FSA to call MOHELA back- inform them of their error- to update their records to accurately reflect XXXX XXXX in the registry. Called MOHELA back at XXXX We have been on hold since - XXXX XXXX and I are both on what is stated to be a " hold time XXXX hours ''. They will not pick up. 

They are using this loophole that they are fully aware of to block our loan being discharged, they simply want our money. They are doing whatever and whenever to put us off. 

XXXX XXXX shows XXXX loans in XXXXSA and as such our process to get her PSLF application and Employee certification forms back in place can not be done on her dashboard ( " you have no loans that qualify for PLSF '' ). We have since prepared the ECFs for her current qualifying employer with whom she has been since XXXX full time XXXX hour a week. Also have XXXX for her other employer ( also a qualifying XXXX where she was XXXX ). I also contend that the employer she was with from XXXX XX/XX/XXXX qualifies but we have had little luck as they have changed hands a few times. 

Here 's a little kicker : As a result of our overpayment ( anything paid over the XXXX qualifying ) we are owed a refund : it's roughly {$15000.00}. 

Bottom line- she meets the requirements for PSLF as I did- we had the same employers ( except for XXXX comprising XXXX  months which still is a qualifying XXXX ) MOHELA dropped the ball amidst the transfer or somewhere along the way and as a result we have to pay them until this gets sorted or we will take a credit hit. 

Per the XX/XX/XXXX court case XXXX v. MOHELA- this is the regular practice of theirs- they deceive, deflect and derail a loan holders attempts to have their loans discharged. Mohela have had multiple other issues and the Federal government took away their contract for PSLF for a period as they had made such a mess of it. Lets be clear- we have MORE than paid the amount we borrowed as from XXXX XXXX None of those loan payments counted toward PSLF. In XXXX before we hard of PSLF we were resigned to pay on XXXX years of loans. PSLF gave us hope we'd be able to get out form under in XXXX years- and then possibly pursue higher paying jobs in the private sector or different careers altogether- XXXX theme was clear- keep your head down for XXXX  years- pay the monthly payment. We did this. PSLF is a government created program- we arent asking for handouts or crying for something we haven't earned or been explicitly promised. If I had entered private sector work in XXXX when I was supposed to be originally forgiven- I'd be making twice as much as I do now. 

We need ASSISTANCE : someone to intervene and hold this repeat offender and their ongoing willful deflection, misinformation and incompetence that are tantamount to criminal business practices- I am considering taking legal action vs MOHELA. They have caused us immeasurable anxiety and they have greatly truncated our finances. 

-Incessant hold times ( XX/XX/XXXX and XX/XX/XXXX combined going on XXXX hours ) -Misinformation -Call deflection -Blatant lies If we are enduring this- thousands of others are. This has been haunting us for XXXX  months since we were first declined in XX/XX/XXXX. We stand at the finish line- we now have a son in college ( guess who didn't qualify for financial aid because his dad showed $ XXXX in outstanding student loans? ) - MOHELA are the only barrier between us being done with this page of our lives. They are a horrible company ad they prey on people. This needs to stop. 

Thank you.

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