Consumer complaint received 2023-12-19
Company: MOHELA
State: IL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
I applied to change over to the new SAVE repayment plan in XX/XX/XXXX before loan payments were set to restart in XX/XX/XXXX. My application was not timely processed. I received a XX/XX/XXXX letter indicating I was being placed on " administrative forbearance '' while the SAVE application was being reviewed. On XX/XX/XXXX I called and spoke with MOHELA after a 3-4 hour wait on hold. I told them that I did not want to be placed on forbearance if those forbearance months would not be counted towards the 120-month PSLF loan forgiveness threshold, even if it meant I would pay more for another month or two. They confirmed I would owe {$430.00} on XX/XX/XXXX and that they would process my SAVE repayment plan application timely. Well, they didn't take me off the forbearance, there was no payment shown as due and owing on my MOHELA website account for XX/XX/XXXX despite what they had told me on the phone, they didn't process my SAVE application, and I received another letter stating that XXXX and XX/XX/XXXX would not count towards the PSFL 120. 

I had called them again on XX/XX/XXXX. They promised me the SAVE application would be reviewed and have a decision within 7 business days. It was not, but at least they got it done this month. I received a letter stating my XX/XX/XXXX payment would be due at the rate of {$430.00}, and I just paid that today XX/XX/XXXX to avoid any credit reporting issues or missing another month towards the PSLF 120-month forgiveness threshold. On the XX/XX/XXXX phone call, I explained that I had seen the news about Biden and the Dept of Education requiring MOHELA to count " administrative forbearance '' months towards the 120-month PSLF requirement. The customer service person tried to argue with me that I was not actually on an " administrative forbearance '' but rather a " processing forbearance '' despite what their own XX/XX/XXXX letter to me stated. I received a letter confirming they were not going to count XX/XX/XXXX and XX/XX/XXXX towards the PSLF 120. I was also annoyed that I was not going to be paying at the new SAVE repayment rate for XX/XX/XXXX despite submitting my Application in XX/XX/XXXX and being told it would be promptly reviewed when I called in XX/XX/XXXX. 

Today I received a letter stating that my SAVE Application was approved, but I do not believe they calculated my repayment rate correctly. The repayment plan estimator calculator says I should be paying about $ XXXX. I make approximately {$62000.00} gross, and my husband and I file taxes as married filing separately. He has paid off his student loans. We have no dependents. We live in Illinois. The SAVE Application approval letter I received indicates my monthly rate starting XX/XX/XXXX will be {$250.00} instead of about {$160.00}. I can not afford to spend another 5 hours on the phone for them to keep lying to me, so I am trying to get help here at the CFPB. 

My husband 's name is XXXX XXXX, and you have my consent to speak with him as well. He is a lawyer and kept notes on all of these events, phone calls, and letters. His contact info is : XXXX and XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation