Date Received: 2017-04-24T00:00:00
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: XXXX was closed and I am not satisfied with the company response. My original complaint : YOUR COMPLAINT After my XXXX in XXXX XXXX , I decided to go into a public service position that I am still working in. I was aware of the Public Loan Forg iveness pr ogram and inquired about the requirements. My loans are direct and eligible. I consolidated my loans in XXXX XXXX . I asked about whether this would change my eligibility and was assured that if I still made payments, I would be on track for the student loan forgiveness program. In XXXX XXXX , I decided to submit my application to see where I stood. I received a response back in XXXX XXXX stating that none of payments qualified. I contacted th e FedLoan Services at XXXX XXXX XXXX to ask about this. They said it was because I consolidated my loan. They listed the eligible payment plans and said that I could pay a 10 year level payment plan and then be eligible. I stated that if I did that my entire loan would be paid off, so there would be nothing to be forgiven. She said ” probably. ” I knowingly took a public service position, making less than I could in the commercial sector so that I could work towards student loan payoff. Now, after over 8 years, I am being told that my payments are not eligible. Why have a ” forgiveness ” plan if you are required to pay it in full. There is nothing to forgive. I do not recall back in 2009 when I did this seeing anything that said a consolidated loan would not qualify. This program is a sham. XXXX XXXX : XXXX University, XXXX XXXX , MO. Company response : Uploaded PDF. I could not access the pdf to review the full response. I will respond to the comments listed. ” FedLoan Servicing advised the borrower of the eligibility requirements for the PSLF program. FedLoan Servicing advised that the borrower ‘s loans were placed on a 25-year Standard Level repayment plan, which was not eligible for the PSLF program. FedLoan Servicing encouraged the borrower to apply for Income-Driven Repayment ( IDR ), which is eligible for the PSLF program. ” I was not advised that going on a repayment plan of 25 years would make me ineligible for the PSLF program. To the contrary, I was told that if I made regular payments under the 25 year repayment plan that I would be eligible for the PSLF. I still do not understand how you can make 10 years of payments under a standard plan and still have a balance that would be forgiven.
State/Zip: CA 935XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 2464832
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