Consumer complaint received 2024-10-15 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: EdFinancial Services
State: SC

Complaint narrative:
On XX/XX/XXXX, the US Department of Education announced that : Education Department Announces Permanent Improvements to the XXXX XXXX XXXX XXXX XXXX and One-time Payment Count Adjustment to Bring Borrowers Closer to Forgiveness. This action will coincide with the XX/XX/XXXX implementation of permanent fixes to XXXX through regulation. 

These actions will provide borrowers with many of the same benefits already going to those who have applied for XXXX under the temporary changes ( known as the XXXX XXXX XXXX ), before its XX/XX/XXXX end date. Borrowers with Direct Loans or Department-managed  XXXX XXXX XXXXXXXX XXXX XXXX XXXX ) will receive credit toward forgiveness on income-driven repayment ( XXXX ) for all months spent in repayment, including payments prior to consolidation and regardless of whether they made partial or late payments or are on a repayment plan. Borrowers will also receive credit for specific periods in deferment and forbearance. 

The Department strongly encourages borrowers to take the necessary steps to apply for the waiver by XX/XX/XXXX ( in which I did ). 

Ensuring Borrowers Receive Credit for Years in Repayment In XX/XX/XXXX, the Department announced one-time improvements to address historic inaccuracies in the count of payments that qualify toward forgiveness under XXXX as well as practices by loan servicers to put borrowers into forbearance in violation of Department rules. As a result of these past failures, borrowers who were in repayment for 20 or 25 years or longer are unable to receive forgiveness under XXXX, and borrowers who were in repayment for 10 years or longer while working in public service may not receive XXXX. To address these inaccuracies, the Department will adjust a borrowers account by granting credit toward XXXX and XXXX for : Any month in which a borrower was in a repayment status, regardless of whether payments were partial or late, the loan type, or the repayment plan ; Any month in which loans were in an eligible repayment, deferment, or forbearance status prior to consolidation ; Months while a borrower spent at least 12 months of consecutive forbearance ; Months while a borrower spent at least 36 cumulative months in forbearance ; and Any month spent in deferment ( exception for in-school deferment ) prior to XXXX. 
Beginning in XX/XX/XXXX, borrowers who have 20 years ( 240 monthly payments ) or 25 years ( 300 monthly payments ) of payments through these changes will start receiving loan discharges. Borrowers who applied for XXXX prior to XX/XX/XXXX and reach 120 payments due to the deferment and forbearance changes will also receive loan discharges. The Department will continue implementing discharges for borrowers who reach the thresholds for forgiveness in the months after XX/XX/XXXX. 

In XX/XX/XXXX, the Department will automatically apply the same payment count treatment to all Direct and Department-managed XXXX loans for borrowers who do not otherwise reach the number of months necessary for forgiveness. 

Permanent Improvements to XXXX Regulations The Department also announced lasting improvements to the XXXX program that will be codified in final regulations. These improvements, which incorporate many elements of the XXXX waiver, include : Allowing borrowers to obtain credit for late, partial, and lump sum payments if the borrower also certifies qualifying employment. 
Awarding credit for certain months in deferment or forbearance, such as those tied to military service or deferments for economic hardship or XXXX treatment if the borrower also certifies qualifying employment. 
A more complete list of the improvements can be found in the fact sheet. The regulations will be published in the coming days and will go into effect XX/XX/XXXX. 

Steps to Qualify for the Limited XXXX Waiver by XX/XX/XXXX The program changes outlined in the fact sheet provide significant benefits to borrowers who have Direct or XXXX XXXX loans as well as Direct Loan borrowers seeking XXXX  now and in the future. However, any borrower interested in the full benefits of the XXXX XXXX XXXX should take action by XX/XX/XXXX. 
In which I did all of the above. 

Fact Sheet : Charting the Path Forward for XXXX XXXX Loan Forgiveness : Today, the XXXX Administration is releasing its plan for the XXXX program after the Limited XXXX The waiver ends on XX/XX/XXXX. The Department still encourages borrowers to take the necessary steps to apply for the waiver by XX/XX/XXXX. However, the plan announced today includes benefits that borrowers with Direct Loans or XXXX XXXX XXXX XXXX ( XXXX ) managed by the U.S. 
Department of Education ( Department ) including borrowers who work in public service will receive in XX/XX/XXXX as part of a one-time account adjustment announced earlier this year. This one-time account adjustment fixes longstanding problems faced by borrowers receiving credit toward forgiveness under XXXX XXXX ( IDR ) plans and PSLF. 
Today, the Department is clarifying that updated payment counts credited toward IDR forgiveness also count toward XXXX for any months in which a borrower has certified qualifying employment on loans borrowed as a student. Borrowers with eligible loans do not need to apply for this credit, it will be automatically computed by the Department. Borrowers who do not have eligible loans will need to apply for consolidation no later than XX/XX/XXXX, to ensure they benefit from the one-time account adjustment. 
The Department is also announcing permanent improvements to the XXXX program through updated regulations, which will be published by XX/XX/XXXX. These regulations eliminate many unnecessary barriers to obtaining XXXX credit, helping many more borrowers working in public service reach forgiveness in the future. 
Crediting Borrowers with Earned Progress toward Forgiveness In XX/XX/XXXX, the Department announced one-time improvements to address historic inaccuracies in the count of payments that qualify toward forgiveness under XXXX as well as practices by loan servicers to put borrowers into forbearance in violation of Department rules. As a result of these past failures, borrowers who were in repayment for 20 or 25 years or longer are unable to receive forgiveness under XXXX, and borrowers who were in repayment for 10 years or longer while working in public service XXXX not receive XXXX. These one-time XXXX will adjust a borrowers account by awarding credit for : Any month in which a borrower was in a repayment status, regardless of whether payments were partial or late, the loan type, or the repayment plan ; Any month in which loans were in an eligible repayment, deferment, or forbearance status prior to consolidation ; Months while a borrower spent at least 12 months of consecutive forbearance ; Months while a borrower spent at least 36 cumulative months in forbearance ; and Any month spent in deferment ( exception for in-school deferment ) prior to XXXX. 
( Directly from the StudentAid.gov website ). 

I am currently employed with a State Agency in the state of South Carolina ( SC ). I have been employed with this State Agency for more than twenty ( 20 ) years. I have provided proof of this employment each time I submitted a PSLF application which also has to be signed by an authorized agency person in Human Resources. 

I have been told one lie to the next by the US Department of Education, XXXX, and now Ed Financial. XXXX was the previous Servicer of the loan, now Ed Financial is the servicer of the loan. 

I DO NOT KNOW OR UNDERSTAND WHY US DEPARTMENT OF EDUCATION SENT MY PERSONAL INFORMATION TO ED FINANCIAL BECAUSE ED FINANCIAL CAN'T DO ANYTHING WITH XXXX APPLICANTS AND/OR APPLICATIONS. 

I HAVE SUBMITTED SEVERAL, MANY, NUMEROUS XXXX APPLICATIONS, SO WHY WOULD THE US DEPARTMENT OF EDUCATION SEND MY PERSONAL INFORMATION TO ED FINANCIAL? ED FINANCIAL DID NOT PROCESS THE LOAN, GRANT THE LOAN, OR APPROVE THE LOAN, THEY ARE NOT IN ANY WAY CONNECTED TO THE LOAN. 

AS I STATED IN A PREVIOUS COMPLAINT XXXX SAID THE US DEPARTMENT OF EDUCATION DID NOT SEND THEM ALL MY INFORMATION. THIS IS A MISGREVIOUS IN Performance and Conduct Issues BY THE US DEPARTMENT OF EDUCATION. 

IT IS XX/XX/XXXX, THE US DEPARTMENT OF EDUCATION MADE THIS ANNOUNCEMENT ON XX/XX/XXXX, ALMOST TWO ( 2 ) YEARS AGO. I WAS TOLD BY A XXXX REPRESENTATIVE THEY WOULD PICK UP MY FILE WORK ON IT FOR A WHILE AND PUT IT BACK DOWN. XXXX IN CONJUNCTION WITH THE US DEPARTMENT OF EDUCATION ALSO IS MISGREVIOUS IN Performance and Conduct Issues. 

I KNOW FOR A FACT THAT XXXX, XXXX, AND XXXX XXXX STUDENT LOANS HAVE BEEN FORGIVEN. THESE PEOPLE MAKE QUADRUPLES MY INCOME. I DO NOT HAVE A HOME. I AM A TAX-PAYING LAW-ABIDING CITIZEN. I AM NOT ASKING FOR A HANDOUT. I AM ASKING THAT THE US DEPARTMENT OF EDUCATION DO WHAT THEY SHOULD HAVE DONE ALMOST TWO YEARS AGO- GO FORGIVE THE LOAN IN FULL IN MY NAME NOW. 

What loans can be forgiven? 
Only XXXX XXXX XXXX loans that are not in default are eligible for XXXX and XXXX. Loans you received under the XXXX XXXX XXXX XXXX  ( XXXX ) Program, the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, or any other student loan program are not eligible for XXXX. To find out which types of loans you have, log in to My Aid on XXXX using your account username and password. 

If you have XXXX XXXX or XXXX XXXX XXXX loans, you may consolidate them into a Direct Consolidation Loan to take advantage of XXXX and XXXX. If you consolidate your loans after XX/XX/XXXX, and the dates of your employment are prior to the consolidation, a weighted average will be applied to determine your qualifying payments from the loans included in your consolidation loan. Borrowers are strongly encouraged to certify all their qualifying employment applicable to the loans before they are consolidated to ensure that weighted average is correctly applied. 

What counts as a qualifying employer? 
Qualifying employers include governmental employers and many not-for-profit organizations. Use our XXXX Employer Search to see if your employer qualifies for XXXX. SEARCH : XXXX XXXX XXXX INPUT SOUHT CAROLINA STATE GOVERNMENT Which Employer Types Are Eligible Eligible Ineligible U.S.-based government organizations at any level ( federal, state, local , or tribal ) this includes the U.S. military Not-for-profit organizations that are tax-exempt under Section 501 ( c ) ( 3 ) of the Internal Revenue Code Other not-for-profit organizations that devote a majority of their full-time equivalent employees to providing certain qualifying public services For-profit organizations, including for-profit contracted organizations Labor unions Partisan political organizations What is a Professional Employer Organization ( PEO )? And how does employment with a PEO affect eligibility for XXXX? 
A Professional Employer Organization ( PEO ) is an organization that provides administrative services, such as payroll and benefits, for another organization under a contractual agreement. PEOs are co-employers of an employee, but for XXXX purposes, the employee is considered a direct employee of the non-PEO employer. 

Generally, you must be directly employed by a qualifying employer for your employment to count toward XXXX and receive a W-2 for that employment. However, if you are co-employed by a qualifying employer but your W-2 is produced by an organization that provides payroll or similar services under contract with the qualifying employer you are still considered a direct employee of the qualifying employer.

Full-time Employment For XXXX, full-time employment is working for a qualifying employer ( s ) for a weekly average, alone or when combined, equal to at least 30 hours : during the period being certified ; throughout a contractual or employment period of at least 8 months in a year, such as elementary and secondary school teachers, in which case the borrower is deemed to have worked full time for the entire year ; or determined by multiplying each credit or contact hour taught per week by at least 3.35 in non-tenure track employment at an institution of higher education. 

Eligible Loans Any loan received under the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX qualifies for XXXX. 

Eligible Ineligible Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans Federal Family Education Loan ( XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX ) Student loans from private lenders While a Direct PLUS loan made to a parent borrower is eligible for XXXX, it can not be paid via a qualifying repayment plan ( other than the 10-year standard repayment plan or a plan where the payment is equal or greater than the 10-year standard plan ) unless it is first consolidated into a Direct Consolidation Loan. 

XXXX and XXXX loans may become eligible if you consolidate them into a Direct Consolidation Loan. 

Payment Credits on Consolidation Loans If you consolidate your loans on or after XX/XX/XXXX, the qualifying payments made on the Direct Loans ( other loan types will not be considered ) included in your consolidation loan will be credited to your consolidation loan using a weighted average of those payments. Borrowers are strongly encouraged to certify all their qualifying employment applicable to the loans before they are consolidated to ensure that weighted average is correctly applied. 

For example, a borrower with XXXX qualifying payments on a XXXX XXXX with a balance of {$30000.00} who consolidates their loan with another XXXX XXXX with a balance of {$30000.00} with XXXX qualifying payments will have a new qualifying payment count of 30 payments credited to the new consolidation loan.

As part of the payment count adjustment, ED will allow qualifying payments from all loans included in a Direct Consolidation Loan, including XXXX XXXX and XXXX loans, to contribute toward the qualifying payment count on the XXXX XXXX XXXX. The payment count adjustment will not use a weighted average. See the payment count adjustment for additional details. 

Because of recent changes to the law, borrowers will be able to separate joint consolidation loans. Were working on implementing these changes and will provide updates on our Joint Consolidation Loan Separation News page. 

Qualifying Payments A qualifying monthly payment is one you make while employed full-time by a qualifying employer ( after XX/XX/XXXX ) at any time during that month while under a qualifying repayment plan, and for the full amount due as shown on your bill ; or when you are in one of the accepted types of deferments or forbearance at any time during that month. 

Note : as a result of the XXXX XXXX, months that you were in repayment while the requirement to make a payment was paused, count as qualifying payments if you also certify your employment for the same period of time. 

Your XXXX qualifying monthly payments dont need to be consecutive. For example, if you have a period of employment with a nonqualifying employer, you will not lose the payment counts for prior qualifying payments you made. 

The best way to ensure that you are making on-time, complete payments is to sign up for automatic debit with your loan servicer. 

Which deferments and forbearances count as qualifying payments? 
When you are in one of the following deferments or forbearances at any time during a month, that month will count as a qualifying payment if you also certify your employment for the same period of time : XXXX treatment deferment ; Economic hardship deferment ; Military service deferment ; Post-active-duty student deferment ; AmeriCorps forbearance ; XXXX XXXX XXXX forbearance ; U.S. Department of Defense Student Loan Repayment Program forbearance ; or Certain administrative forbearances related to local or national emergencies or military mobilizations and or mandatory administrative forbearances provided to borrowers for collecting supporting documentation. 

What types of qualifying payments will be allowed for the payment count adjustment? 
As part of the payment count adjustment, ED will allow the following to count as qualifying payments : all periods of deferments prior to XXXX ( except for in-school ) will automatically be credited to your account the deferments listed above beginning on XX/XX/XXXX, will automatically be credited to your account periods of XXXX student loan payment pause forbearance will automatically be credited to your account periods of 12 or more consecutive months of forbearances will automatically be credited to your account borrowers with 36 or more cumulative months in forbearance will have all periods of forbearance automatically credited to your account periods of less than 12 months of forbearance may be credited toward your account but additional action will be required by you. We will provide instructions on how to take those actions in the near future on the payment count adjustment announcement page.

Once the payment count adjustment has been applied to your account, prior periods of deferments or forbearances that were not credited to your account may be counted as qualifying payments if you make additional payments specifically to cover those periods. You can buyback these prior periods after we begin to apply the payment count adjustment. 

Can I make a qualifying payment while in a period of forbearance, deferment, or in a grace period? 
You can only make a qualifying monthly payment during periods when you have a payment due. Therefore, you cant make a qualifying monthly payment while your loans are in an in-school status, a grace period, a deferment, or a forbearance ( except for those specific deferments and forbearances identified above ). 

If you want to make qualifying payments, but youre in a deferment or forbearance that doesnt count as a qualifying payment, contact your federal student loan servicer to waive the deferment or forbearance. However, you can still receive credit toward XXXX during the XXXX student loan payment pause. 

Qualifying Repayment Plans Qualifying repayment plans include all income-driven repayment ( XXXX ) plans ( plans that base your monthly payment on your income and household size ) and the XXXX Standard Repayment Plan. The four XXXX plans we offer include : XXXX XXXX XXXX XXXX XXXX ( XXXX ) Planformerly the XXXX Plan Pay As You Earn ( XXXX ) Repayment Plan XXXX XXXX ( XXXX  ) Plan XXXX XXXX ( XXXX ) Plan While payments made under the XXXX Standard Repayment Plan are qualifying payments XXXX you might have to change to an XXXX plan to benefit from XXXX. Under the XXXX XXXX XXXX XXXX XXXX XXXX your loans will be paid in full once you have made XXXX qualifying XXXX  payments so there would be no balance left to forgive unless periods of qualifying deferments or forbearances are included in your 120 qualifying payments. 

Not all borrowers qualify for every XXXX plan. Your monthly payment amount could increase under these plans, depending on your income. You could pay off your loan before qualifying for forgiveness depending on the amount that you owe. Use the Loan Simulator to review your options. 

The following repayment plans do not qualify for XXXX : Standard Repayment Plan for Direct Consolidation Loans Graduated Repayment Plan Extended Repayment Plan While these plans do not qualify under XXXX, these plans are eligible for the XXXX XXXX XXXX XXXX XXXX ) opportunity. 

XXXX  Process Because you have to make XXXX qualifying monthly payments, it will take at least 10 years before you can qualify for XXXX. 

Important : You must still be working for a qualifying employer at the time you submit your form for forgiveness. 

Whether you have made 120 qualifying payments, or not, you should fill out and submit the XXXX form annually or whenever you change employers. Otherwise, youll have to submit XXXX forms for each employer you worked for all at once. It could become difficult to contact those employers after such a long time or you could discover that some of your employers do not qualify. 

Either way, well use the information you provide on the form to let you know if you are making qualifying XXXX payments. This will help you determine if youre on the right track as early as possible. 

XXXX  Form Process and XXXX XXXX We will process your PSLF form and determine how many qualifying payments you made during the employment period on your form and youll receive a letter telling you the number of qualifying payments you have made. Log in to StudentAid.gov and go to My Aid in your Dashboard to see your XXXX progress. 

The number of qualifying payments you have made will be updated only when you submit another XXXX form that documents a new period of qualifying employment. 

Once your cumulative total of qualifying payments reaches 120, we will confirm your eligibility and work with your servicer to forgive your remaining balance. 

ACCORDING TO US DEPARTMENT OF EDUCATION, " The number of qualifying payments you have made will be updated only when you submit another XXXX  form that documents a new period of qualifying employment. 

Once your cumulative total of qualifying payments reaches 120, we will confirm your eligibility and work with your servicer to forgive your remaining balance. '' I HAVE MORE THAN TWENTY ( 20 ) YEARS OF STATE GOVERNMENT EMPLOYMENT. 

I CONTACTED XXXX the state agency responsible for the administration and management of the states retirement systems and employee insurance programs for South Carolinas public workforce. More than XXXX public employees are covered by the five defined benefit retirement plans, and XXXX administers insurance benefits to more than 530,000 members. An additional 60,000 members participate in the XXXX XXXX XXXX XXXX. PER MY REQUEST, THEY EMAILED ME A LETTER DETAILING THE NUMBER OF STATE GOVERNMENT YEARS I HAVE. I UPLOADED THIS LETTER/EMAIL ON XXXX AND THE US DEPARTMENT OF EDUCATION WEBSITE IN MY ACCOUNT.

I AM ASKING, I AM PLEADING, I AM BEGGING AND REQUESTING CFPB CONTACT THE US DEPARTMENT OF EDUCATION TO HAVE THIS ISSUE RESOLVED AS QUICKLY AS POSSIBLE I.E., TOMORROW XX/XX/XXXX. 

PLEASE CONTACT ME VIA PHONE AT XXXX. PLEASE DO NOT POST MY PHONE NUMBER, GIVE MY PHONE NUMBER, AND/OR SELL MY PHONE NUMBER OR ANY OF MY PERSONAL INFORMATION. 

THANK YOU IN ADVANCE FOR YOUR HELP. 

SINCERELY, XXXX, XXXX XXXX XXXX XXXX XXXX SC XXXX

Company response to consumer: Closed with explanation