Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: My husband and I were advised by the Department of Education and American Education Services to apply for a Spousal Consolidation Loan in 2005. We were not informed that the DOE was about to pull the plug on these XXXX loans, and they would no longer be recognized by the DOE. These loans are not eligible for Public Service Loan Forgiveness like Direct Loans are, and they are not eligible to be reconsolidated into a Direct Loan. We would never have done this Spousal Consolidation if we had known this information. I only had {$6000.00} in loans, but my husband had XXXX. At this point, we have paid XXXX, and owe XXXX due the 7.5 % interest rate on this loan. If the loans were able to be separated and reconsolidated into a Direct Loan, my husband 's portion would qualify for Public Service Loan Forgiveness. He has worked in qualifying employment for over 13 years. Please help correct this horrible situation!!!
Company Response:
State: PA
Zip: 164XX
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I want to file a complaint regarding my student loans. I have received differing information regarding consolidating my federal loans. I called several weeks ago and inquired about consolidation of all my federal loans. I was told by the loan agent that my loans would be consolidated into one loan and my PSLF qualifying payments would be recalculated and counted as the highest number of payments made to all loans. So I proceeded with the consolidation. I completed the app online and got confirmation that my loans were being consolidate. Then on XX/XX/22 I got a letter in the mail that was regarding my consolidation. The letter stated that if I consolidate these loans I would have to re-start my payment counts toward PSLF. I panicked. This is direct opposite of what the agent told me. I placed many calls to MY FED Loan and was put on hold for over 30 minutes, when I tried to get a call back I was either hung up on or placed on another hold. Never was able to ask anyone. I searched the website for information and saw on there as well that my payments would restart. I canceled the consolidation request so I would not loose my payments. The website states that counts start over as well. However I am hearing from MANY other borrowers that this is no longer correct but that the site is not updated, that the letter I got 2 weeks ago is outdated. So I have once again been trying several times a day to contact the servicing center with absolutely no luck at all. I can not get the information that I need to determine if I need to apply for consolidation again. This has been very confusing and the information that I was given over the phone weeks ago is direct opposite of what is on the website. I need written facts so that I can determine if consolidation is the right course for me. I can not consolidate if I have to restart my payment counts. I just need correct information and can't even get a call back. I have also direct messaged them on XXXX XXXX and can not get a response. I do understand that everything is in process to change the information however there is a deadline I am trying to meet as well for the consolidation process. I need help getting the correct information. I have been getting misinformation for years with various student loan servicers.
Company Response:
State: GA
Zip: 305XX
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Struggling to repay your loan
Subissue: Can't get other flexible options for repaying your loan
Consumer Complaint: I have written the following complaint to the department of Education. My wife XXXX XXXX and XXXX XXXX XXXX both qualify for the PSLF program. The department of education says we need to re-consolidate into Fedloan Servicing. However, Fedloan Servicing denied our application because it is a spousal consolidation loan through XXXX right now. Both XXXX XXXX XXXX and Fedloans Servicing have given us a XXXX XXXX. XXXX currently is the servicer of our loans. Our loans are XXXX loans that we were advised to consolidate in a spousal consolidation. We have made over XXXX payments ( only XXXX are required for PSLF ) both while both working at a qualified school ( employer ) on the Public Student Loan Forgiveness approved list. If these loans were not consolidated in a Spousal consolidation they said they would easily do the consolidation. We have met the requirements, and our loans are not private students loans but are held XXXX by companies that are not implementing the XXXX program to qualified borrowers. It is discriminatory that this is happening just because we are married and consolidated. LETTER sent in our complaint : Michigan Department of Education, Federal Loan Servicer : We are sending our Public Service Loan Forgiveness forms in jointly. The reason for this joint submission is that we are both Public School Teachers at qualifying districts. Our XXXX loans are consolidated jointly currently with XXXX and when we tried to reconsolidate, as the federal site advises, with Fedloan Servicing our consolidation was canceled. After many hours on hold we were advised by Fedloan Servicing to send our PSLF forms in together with a letter of explanation to avoid having it rejected. We have made the required XXXX payments to qualify for the forgiveness and more than XXXX additional payments in the past years. We are very thankful this program exists and are faithful public servants that are trying to ensure we follow this process to the letter as best we can. There is not a process clearly stated on the website for a previous spousal consolidation loan to go through the XXXX program even though we both clearly qualify on all criteria. I was able to complete the form for myself using the PSLF tool ( XXXX XXXX ). However, XXXX XXXX had to complete the form by hand because her account does not even show a loan balance due to the joint consolidation on our loans. This spousal consolidation was the route that the loan servicer advised us to do that was servicing many federal student loans. XXXX told me the loans can not be unconsolidated and XXXX XXXX told me they can not consolidate a joint spouse consolidation loan. I included the payment history I have records of from XXXX. I hope that by sending these in together it will expedite the process of XXXX. Thank you for all you do. Sincerely, XXXX XXXX XXXX XXXX : _________________________________________ Date : ____________________ XXXX XXXX XXXX XXXX : _________________________________________ Date : _____________________ XXXX information showing that we qualify for XXXX : XXXX : XXXX This is the copied and pasted content from there : I have a joint Direct Consolidation Loan that I obtained with my spouse. Can we receive XXXX XXXX XXXX XXXX ( XXXX )? REPAYING LOANS Yes, but to receive forgiveness of the entire remaining balance of the loanafter making XXXX qualifying paymentsboth you and your spouse must have been employed full-time by a qualifying employer at the time each payment was made. If only XXXX of you met the employment requirement, only the portion of the remaining balance attributable to the original loans of that individual would be forgiven. For example, if you were employed full-time by a qualifying employer when each of the required XXXX payments was made, but your spouse never worked for a qualifying employer or worked for a qualifying employer only when some of the payments were made, the amount forgiven after the XXXX qualifying payment would be the remaining balance of the loan attributable to the loans you originally received that were paid off by the joint consolidation loan. Both you and your spouse would remain responsible for repaying the remaining balance of the loan that is attributable to the loans your spouse originally received. You cant receive forgiveness of a joint Direct Consolidation Loan by combining payments made when only you met the employment requirement with payments made while only your spouse met the employment requirement. For example, if only you were working for a qualifying employer when XXXX payments were made and only your spouse was working for a qualifying employer when XXXX payments were made, the payments can not be combined to count as XXXX qualifying payments that would make the loan eligible for XXXX.
Company Response:
State: MI
Zip: 486XX
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: The number of payments eligible for PSLF is incorrect and Ive tried to correct this and no one seems to know how to help. Ive been in the medical field working for a qualified employer since 2010. I was also on XXXX with $ 0 monthly payment that I was told would still count toward forgiveness. But not all those payment are being counted as forbearance which would not qualify.
Company Response:
State: NJ
Zip: 08330
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Regarding the XXXX XXXX XXXX XXXX program, FedLoan Servicing sent me ( and thousands of other borrowers ) erroneous letters labeled " PSLF Application Results '' that contain this line : " The charts above display the total number of eligible and qualifying payments you have made ( out of the required XXXX ) on your eligible loans for XXXX and XXXX, including any periods we have assessed as eligible or qualifying under the Limited PSLF Waiver. '' This information is incorrect and misleading, as the Department of Education has not yet applied the XXXX XXXX XXXX payments to most borrowers ' accounts. Since I just reconsolidated my loans to get the highest payment count on all my loans, my qualifying payment counts went from around XXXX and XXXX to XXXX. I also have at least XXXX to XXXX old payments that should qualify under the XXXX XXXX XXXX. I understand that it's taking some time for the Dept of Ed to apply the waiver to so many accounts, however, it is incorrect and distressing to borrowers to get letters from their loan servicer saying that the waiver payments have already been applied.
Company Response:
State: TX
Zip: 78757
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/2022 I received a qualifying payment letter from FedLoan that says they have evaluated my payments under the Waiver when they clearly have not. This is happening to thousands of borrowers and it is causing huge stress and trauma. This is just another example of abuse that student loan borrowers have been under with this loan servicer. After years of being lied to by XXXX and Fedloan about the PSLF program this is just icing on the cake of XXXX. Thanks, XXXX XXXX
Company Response:
State: NY
Zip: 146XX
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: FedLoan sent me a letter stating that they have evaluated *all* of my employment history for the federal student loan forgiveness program. This is not possible, as I sent in 12 years worth of history / forms, and they have only looked at and counted five years worth of my forms. This type of communication is inaccurate, and causes anxiety. They are impossible ( IMPOSSIBLE ) to get a clear answer out of. When I try to call, I am often on hold for 4+ hours, and sometimes am hung up on by the customer service rep who answers. I expect more expedient and complete counts of my qualifying payments toward my student loan forgiveness.
Company Response:
State: TX
Zip: 76126
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I consolidated my loans due to the PSLF waiver and I repeatedly got told that if I consolidate, my loans would restart. I had over 100 and this information caused me to wait to consolidate, waste tons of time researching and call waiting on hold or messaging with no responses. I am in a limbo now with my loans and it is still showing 0 counts toward PSLF. Fed Loan is not changing any verbiage and this is freaking many out and making many more not consolidate in order to benefit from the waiver. I am also showing payments that were made and are showing that I was in forbearance but payments were made at that time.
Company Response:
State: MI
Zip: 48185
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/22 I received a letter from FedLoan Servicing about my PSLF qualifying payment update. It says it includes any periods we have assessed as eligible or qualifying under the Limited PSLF Waiver. However I believe this information to be incorrect as there was no adjustment to my qualifying payment counts and there should be and they are not able to clarify. FedLoan has incorrectly estimated my qualifying repayments and I deserve a fair and accurate recount and transparency.
Company Response:
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2022-03-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/XXXX, I received an email from the Department of Education saying that under the Limited PSLF waiver, my consolidation loan 's payment count should " go up by at least 3 qualifying payments. '' On XX/XX/XXXX FedLoan servicing sent me a letter saying that they have updated my payment count and it " includes any periods we have assessed as eligible or qualifying under the Limited PSLF Waiver. '' However, the updated payment count only reflects the update from my most recent employment certification and does not include the " at least 3 '' waiver qualifying payments DOE emailed me about. This communication is misleading about whether they have done anything to reconcile their records with DOE 's records with respect to my personal account.
Company Response:
State: TX
Zip: 79413
Submitted Via: Web
Date Sent: 2022-03-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A