Consumer complaint received 2025-07-16 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: Maximus Federal Services, Inc.
State: MI

Complaint narrative:
In XX/XX/XXXX, I applied for a full loan consolidation to take advantage of the Limited PSLF Waiver. My loan servicer at the time of consolidation was Fedloan Servicing. I have the letters from Fedloan showing that all of my loans were to be consolidated into one loan in the amount of {$57000.00} with the interest rate of XXXX. With the PSLF Limited Waiver, my new consolidation loan payment count was to be the same count as my student loan with the highest payment count ( 111 qualifying payments ) which would put me nine payments away from student loan forgiveness. As my consolidation loan was being processed for PSLF, it was announced that MOHELA was taking over as my loan servicer. Somehow, MOHELA made a processing error, and they only consolidated my FFELP loans. As a result, I have 14 loans with all different payment counts. 

On XXXX, I spoke with several Federal Student Aid representatives, an XXXX XXXXXXXX representative and an advanced Federal Student Aid representative. She opened up my consolidation loan application and verified that all of my loans were supposed to be consolidated. She said that there was nothing Federal Student Aid or XXXX XXXX could do, and that MOHELA had made a processing error when taking over the account. She said MOHELA needed to make an account adjustment to fix their processing error. Furthermore, when I spoke to the XXXX XXXX representative, she said there was NOTHING in their system for me, and that the Fedloan Servicing accounts were NOT transferred to them because they didn't start processing loan consolidations for MOHELA until XXXX -- my consolidation loan was supposed to be processed in XX/XX/XXXX. 

The MOHELA representative told me there was nothing they could do and wanted to transfer me back to an XXXX XXXX representative. I told her I had already spoken with one of their representatives, and that they could do nothing for me. She then said she was going to transfer me to their resolutions department, and at that point I was disconnected. 

Federal Student Aid has my consolidation application on file. I also have the letter from Fedloan Servicing dated for XX/XX/XXXX showing that my loans were to be consolidated. 

I do NOT want to get a new consolidation loan because I would not get credit for all of my student loan payments. I want MOHELA to fix their processing error and update my account. If they can fix it by consolidating my loans, I want them to honor ALL of the terms that were offered the the Limited PSLF Waiver which would transfer the highest number of qualifying payments ( 111 ) to the new loan.

There has been a LOT going on with student loans in the last six years, and in many cases the left hand doesn't know what the right hand is doing. MOHELA has a history of mismanagement and shady practices. PLEASE do all that you can do to make them make the necessary adjustment to rectify my account while giving me due process as secured by the laws. As is, I will be paying on student loans for another 90 months when I should only have NINE more payments.

Company response to consumer: Closed with explanation