Consumer complaint received 2023-11-22
Company: MOHELA
State: AP
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Need information about your loan balance or loan terms

Complaint:
This is a joint spousal consolidation loan. The loan is under a primary borrower 's name with the ex-spouse listed as a " co-signer. '' Both borrowers are eligible for PSLF and have been in a qualifying job since PSLF was first implemented XX/XX/XXXX. Timeline : XX/XX/XXXX : Primary borrower submitted PSLF waiver applications to XXXX XX/XX/XXXX : Receipt of forms acknowledged XX/XX/XXXX : Primary borrower called XXXX, XXXX stated XXXX payments toward TEPSLF XX/XX/XXXX : XXXX letter received stating XXXX eligible payments toward TEPSLF XX/XX/XXXX : Updated PSLF waiver forms submitted to add employment XXXX XX/XX/XXXX : XXXX XXXX received stating XXXX eligible payments toward TEPSLF XXXX, XXXX : Loan transferred to Mohela XX/XX/XXXX : Primary borrower sent updated employment PSLF waivers XX/XX/XXXX : Mohela states PSLF forms were rejected because they were duplicates. 
They were NOT duplicates, both borrowers are required to submit for joint loan XX/XX/XXXX : Mohela states updated PSLF received XX/XX/XXXX and XXXX, were processed XX/XX/XXXX but had to be re-processed due to their processing error, would take up to 90 days. 
XX/XX/XXXX : Secondary borrower calls Mohela and customer service rep agrees to expedite forms due to length of time it has taken XXXX XXXX XXXX : Discharge letter was sent out but there is still a XXXX balance XXXX XXXX : Secondary borrower calls, customer service rep states primary borrower 's portion of the loan is forgiven but secondary borrower must wait 90 days for studentaid.gov to process reimbursement on that portion before processing secondary borrower 's application. This does not make sense because spousal consolidations can not be split XX/XX/XXXX : Secondary borrower calls to inquire about reimbursement, customer service rep states reimbursement takes longer because it is a joint consolidation loan XX/XX/XXXX : Complaint filed with ombudsman on studentaid.gov. Case is closed with no response. 
XX/XX/XXXX : Primary borrower sends Mohela a message inquiring about forbearance and reimbursement. Response states that primary borrower is still responsible for remaining balance on loan XX/XX/XXXX Primary borrower sends Mohela a message again requesting administrative forbearance on remaining loan balance until PSLF waiver is applied to that portion. Mohela states no forbearance can be applied because the loan had been forgiven via PSLF XX/XX/XXXX Letter received by primary borrower stating XXXX payments XX/XX/XXXX Primary borrower calls about loan forgiveness on remaining balance. Mohela states a rep mistakenly had secondary borrower 's form under primary borrower 's name so it was never processed. States form will be processed but may take 90 days. 
XX/XX/XXXX Primary borrower requests forbearance on impending payment XX/XX/XXXX since request was made to remain in forbearance until PSLF is resolved. Mohela does not respond. 
XX/XX/XXXX Attempted to call Mohela as payment letter was received with repayment amount for both loans even though it was stated one was forgiven XX/XX/XXXX Payment was made on total of both loans ( forgiven and not forgiven ) to preserve credit, but will not be reimbursed unless both borrowers update PSLF waiver forms which will restart the timeline XX/XX/XXXX Primary borrower calls. In the past, customer service reps refused to speak to secondary borrower. Rep states they can no longer speak to primary borrower since that portion of loan is forgiven and can only speak to secondary borrower. However, primary borrower is paying on stated " forgiven loan '' and is told he can't apply for a forbearance. Secondary borrower has access to no information on studentaid.gov ( no loans listed ) and can not see any information on Mohela login. Secondary borrower must use SSN and BD of primary borrower to get a call through to Mohela to speak to a rep XX/XX/XXXX Secondary borrower finally got through to a rep but had to provide above info, rep transferred secondary borrower to dispute resolution, secondary borrower waited but Mohela eventually closed which disconnected the call while waiting

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