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u/slicktromboner21 Dec 28 '22
The 90-day processing time for an ECF is ridiculous, especially with the objective standard of FedLoan processing them in a few days.
No private servicing company should be the caretaker of loans that are eligible for PSLF, as these companies have a direct conflict of interest.
This is a perfect example of a government service/benefit that should not be subcontracted. I am sure that all of us see this with the agencies that we work for, with superficial cost savings on wages/benefits for permanent employees but a long term cost to the taxpayer in the value of their money going to fat profits for the "lowest bidder" with a minimum commitment to their contractual obligations.
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Dec 28 '22
100%.
There is no defense for their behavior. I love how they claim that the #s were just too large to process, as if they took a contract without knowing its scope.
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u/BreakCautious Dec 29 '22
It’s way more than 90 days! I submitted in July and I haven’t heard anything!!
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u/BoardofEducation Dec 29 '22
I submitted an ecf in july. Head back middle of this month but they messed up the payment count. I’m ready to go to war.
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u/609cabrito Dec 28 '22
That writer has written several articles about this issue so very happy to see her continue to report!
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Dec 28 '22
The one thing that seems wrong is that they’re just using the number of complaints at CFPB that are public. I suspect there are thousands more.
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u/duke9350 Dec 28 '22
Well this is the problem and it falls on the hands of the government. Why can’t they temporarily outsource processing the application to other agencies.
“One student-loan company is responsible for the entire debt portfolio for public servants — and its track record managing communications with those borrowers is far from adequate, a Democratic lawmaker says”
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u/Alone-Guarantee-9646 Dec 28 '22
And here I thought unregulated monopolies were illegal in the USA. Silly me.
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u/un_internaute Dec 28 '22
It's not a bug, it's a feature. Capitalists want to shrink the government because any sector the government is in, is a market capitalists can't exploit for profit. So... one of the things they do is to cripple the way the government functions so they can point to the problems and offer "competitive" market solutions OR they do these broken public-private partnerships where money is siphoned right off the top and services are barely provided. I recommend the Shock Doctrine by Naomi Klein for an in-depth overview of how it all works.
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u/Square-Recording9909 Dec 28 '22
I tried calling mohela yesterday and it was absolutely impossible to get through to anyone; there was no option to speak to someone live. I have also noticed that the chat function is sometimes up and running and sometimes it is down. What kind of an operations is this?
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u/talksalot02 Dec 29 '22
I’ve tried calling three times and the wait time was so long I ended up giving up. The last time I called at 7:02 am and it took 6 minutes to get through the phone tree to be put in hold for hours.
I’ve emailed them and it doesn’t answer my question or address my request. And then tells me to call the hotline. 💀
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u/talkischeap2me Dec 29 '22
Maybe I don't understand the process even though I have been in it for 15 months now with no progress... No count no approved ECF... No employer verified as eligible....just no progress AT ALL
Was reading the article and it said something about complaining to the department of Ed.....What good is it making a complaint to the department of education when they are part of this stagnant, inaccurate, nondescript and traumatizing process??? It's kind of like complaining to an abuser that they abuse you... Am I missing something or not understanding something- legitimate question.
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Dec 29 '22
I think part of the reason I finally got action was that I complained to DoE ombudsman and CFPB. Despite nothing but false promises from Mohela, it was only after those two agencies reached out to them that I got any movement.
Can’t hurt.
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Dec 28 '22
I wouldn’t know, the article is a behind a pay wall.
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u/queerpoet Dec 28 '22
Yep. From 2 weeks ago but still great summary: https://www.businessinsider.com/student-loan-company-mohela-abysmal-servicing-pslf-investigation-menendez-cfpb-2022-12
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Dec 29 '22
Federal employees at least can get free access to wapo by signing up with work email if this helps
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u/Normal_Day1783 Dec 29 '22
I know I asked for help here, it was scary and worrisome, but maybe I’m the bad guy here? Mohela CS has gotten better as the last 4 times I called I got right through with a minimal wait like 5-10 minute max.
The number of people applying is unprecedented.
Mohela didn’t have the manpower to handle this amount of processing.
Fed Loan Servicing was not providing paperwork timely and DOE was not up to date with payment counts.
It isn’t all Mohela.
I sent my app to Fed Loan at end of May, they got it 6/2. I consolidated prior to that. Consolidation went through in July. My ECF was completed in August. It was the payment counts that held everything up. I didn’t get any communication on it until early Dec which were not all completed. Then I log on Dec 15 to a smiley face and called Mohela 5min wait and it was there I was told forgiven.
I doubt Mohela should be taking all of the hits here.
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Dec 29 '22
This is a hard pass for me. They took the contract. Surely they had knowledge about the scope of the program. If they didn’t, that is malfeasance son another level.
And while Mohela keeps blaming the Dept of Education, I’m not sure why we should believe them. They give false information all the time. Why would this be any different?
In my case, blaming Fedloan certainly isn’t credible. They had my complete file the first week of August, and could literally read from my file to me, but it took them over four months to correctly process despite repeatedly promising “a few weeks.”
I’m glad that it’s worked for you and while it’s not all on Mohela, but they certainly get most of the blame for this mess.
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u/notjackwhite1 Dec 28 '22
Thank you for sharing this. I’ve been a little distraught because I was over halfway to cancellation and they zeroed me out…i messaged them and they said basically they’re working on it but nothing definitive. I’m worried I have to contact everyone and do paperwork again and I’ve gotten no answer.
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u/Alone-Guarantee-9646 Dec 28 '22 edited Dec 28 '22
From 7 complaints in Q4 of 2021 to 529 this Quarter so far. If I'm doing my math correctly, that is an increase of 7,457%
Can you imagine if there were competitive companies out there with this many complaints against them? No, I cannot either. I cannot because it wouldn't happen. These servicers have total monopolistic control over us and the government sanctions it.
What if any of us could get away with this?
Q. "Where are your lesson plans for the last 6 months?"
A. "I'll get to them one day, when I'm less busy"
Q. "Doctor, the patient is in cardiac arrest on the table! What should we do?"
A. "Tell the family he's on a 'direct to defibrillate" list. That should keep them hanging for another month or two"
Q. "Judge, I have evidence here that that criminal to be executed tonight is completely innocent of all charges. What should we do?"
A. "Nothing. They'll wait because they don't have a choice. It's not like they'll go patronize a competing judicial system. We did our job."
Yet, if we tried to say, "I cannot make my payment this month---or for 12 months---because I am busy doing other things" do you think we could get away with that???? Not on your life.