Consumer complaint received 2023-09-20
Company: MOHELA
State: ME
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 have 3 Issues with my loan service provider Mohela.

1 ) There is a glitch in the system that is causing my loan payment amounts to be calculated incorrectly when I am applying for the SAVE program : I have been in an IBR plan for almost a decade or more. I had recently learned of the SAVE program. When I used the online calculator to see which plan would lower my payments the most, it stated that the SAVE plan would bring my payments down to about {$75.00} a month. Multiple Mohela representatives on numerous occasions also ran the calculation and confirmed that it would be about {$75.00} a month. When I first submitted my application for the SAVE program with an agent 's help it was accepted but the monthly payment came back to be {$770.00} a month. This is not the {$75.00} a month I was told it would be through multiple people and calculators. This was on XX/XX/23. When I called to discuss the issue they stated that a glitch in the system seemed to be combining both my and my wife 's income. It is only supposed to use my income in the calculation. I am married but file taxes separately from my wife. The agent decided to resubmit the application to be processed again. 

On XX/XX/23 I was again approved, but again the payment was calculated incorrectly at {$770.00} a month. The same glitch, the same error. I spoke to another agent and they resubmitted the form again making special notes to draw the processor 's eye to the error in calculations. They said that Mohela is aware of the specific issue, it was affecting more than just me, and they are working on it. That third application was submitted on XX/XX/23. 

I recently received an email stating that my application has been delayed. I called on XX/XX/23 to inquire as my loan was due to go into repayment on XX/XX/XXXX. They said they were aware of the issue in calculations and placed my loan in a " processing forbearance '' until XX/XX/23 so they have time to fix the issue and so I wouldn't have to make that huge {$770.00} payment on XX/XX/XXXX. 

My concern is that this issue will not get resolved. I should be able to have my loan processed correctly, separating my and my wife 's income to receive the {$75.00} a month payment. The glitch in the system is troubling.

2 ) My second issue is how this problem affects my PSLF standing. I have been faithfully fulfilling my obligation towards my PSLF forgiveness through working in a nonprofit for almost 10 years now. I am so close to the 10-year mark. It is nice that Mohlea is putting me into a " processing forbearance '' while they figure out the issues with my application processing but I was told that during this forbearance I will not get credit towards my PSLF payments as has been the case throughout all of the COVID pandemic and when I actually was making payments prior to the pandemic faithfully and on time. I don't feel that I should be penalized, and not be able to get PSLF credits because I am being put into a " processing forbearance '' due to a glitch in the system.

3 ) Long hold times to speak to representatives at Mohela.

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