Quick Answer: This CFPB complaint shows how AES/PHEAA denied a borrower’s Public Service Loan Forgiveness despite 108 qualifying payments, then rejected their TEPSLF application because recent payments were below the calculated $350 monthly income-driven amount. The case illustrates common PSLF servicing issues where technical payment requirements can disqualify otherwise eligible public service workers.
Date Received: 2018-12-31T00:00:00.000
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
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Consumer Complaint: I have been working full time in public service since XX/XX/XXXX. During this time I have been paying my loans on automatically, on time, and under income drive repayment plans. I applied for PSLF in XX/XX/XXXX and was denied with only 108 payments accepted towards PSLF ( out of 120 needed for forgiveness ). No one at XXXX XXXX has been able to explain why all 120 payments were not accepted despite my many phone call and email requests.
I then asked to be considered for TEPSLF on XX/XX/XXXX. I was denied forgiveness under that program on XX/XX/ and the denial letter reads : ” To be eligible for the TEPSLF opportunity, the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF must have been at least as much as you would have paid under an incomedriven repayment plan.
We evaluated your eligibility for TEPSLF based on the income-driven repayment plan that would have provided you the lowest monthly payment amount. This gave you the best chance at being eligible for TEPSLF.
The monthly income-driven payment amount calculated using your information on file was {$350.00}.
A review of your payment history determined that your most recent payment made was less than the calculated monthly income-driven payment amount. This makes you ineligible for the TEPSLF opportunity. ” This denial does not make sense since my last payment was {$350.00} and my payments the entire last year have been under income driven plans and paid automatically and on time. Please help advise on next steps.
Company: AES/PHEAA
State/Zip: OR
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3113157
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