Consumer complaint received 2023-10-11
Company: MOHELA
State: KS
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:
Problem : My account is showing I owe {$1600.00} due today ( XX/XX/XXXX ), however, MOHELA sent me a letter on XX/XX/XXXX stating my account is in administrative forbearance while they process my SAVE plan application. They have not applied the forbearance to my account, as required by federal policy. 

Background : My loans were on the REPAYE plan prior to the start of the COVID-19 0 % interest period. ( See documentation provided ). When interest resumed, 3 of my loans were placed on the Level plan while the other 6 loans were transferred over to the SAVE plan. On XX/XX/XXXX, I recertified my loans via Studentaid.gov, with information downloaded directly from my most recent tax filing, to ensure all 9 loans were captured under the SAVE plan. I called MOHELA on XX/XX/XXXX to inquire about the status of my SAVE application. I was told they had no record of me applying for SAVE. The representative suggested I reapply, verbally, over the phone with her. Therefore, on XX/XX/XXXX I filed a second recertification for the SAVE plan per MOHELA 's recommendation. ( See documentation provided. ) On XX/XX/XXXX, I called MOHELA to follow up on the status of my application ( s ). The representative stated she could see both applications in the system and they were both processing. She indicated current wait times for processing of applications were about 15 days and I should expect an approval around XX/XX/XXXX. 

On XX/XX/XXXX, I received a letter ( dated XX/XX/XXXX ), stating my account had been placed in administrative forbearance. ( See documentation provided ). However, my account dashboard still indicated a payment was due on XX/XX/XXXX. On XX/XX/XXXX, I called MOHELA to ask for clarification. After over 2 hour on the phone, and speaking with 2 representatives, neither of them were able to determine why the forbearance had not been applied to my account. The second representative I spoke with applied for another administrative forbearance on my account. As of XXXX/XXXX/XXXX, that forbearance has not updated my account either. 

On XX/XX/XXXX, I received a letter ( dated XX/XX/XXXX ) stating my repayment terms had changed for only 6 of my 9 loans. ( See documentation provided ). The letter listed a new payment due date of XX/XX/XXXX for 6 of my loans, and converted those loans ( previously on SAVE ) to the Level plan. Additionally, my account dashboard is still stating I have a payment due today ( XX/XX/XXXX ). ( See documentation provided ). I also received an email on XX/XX/XXXX, reminding me I had a payment due. ( See documentation provided ). 

MOHELA is providing mixed messages to borrowers regarding payment due dates and the status of their accounts. They are also incorrectly assigning accounts under the REPAY plan to the Level plan, instead of honoring the conversion of REPAYE to SAVE. Calls to discuss the issue with the company directly are not helpful as representatives lack the knowledge and access to be able to troubleshoot problems. I am now forced to make a payment of {$1600.00}, which is over XXXX the amount I should be paying on the SAVE plan ( {$520.00} ) to ensure my payment is not delinquent. My MOHELA dashboard is also reporting my monthly payment on the Level plan is {$2000.00} per month ( see documentation provided ), so next month my payment could increase to nearly 4x what it should be while MOHELA continues to sort through these preventable delays.

Attachments : 1 ) Documentation of loans on REPAYE prior to loan payments restarting.

2 ) Screenshot of SAVE recertification status.

3 ) Administrative forbearance letter.

4 ) Change in repayment terms letter.

5 ) Screenshot of borrower dashboard indicating payment is due XX/XX/XXXX. 
XXXX ) Email reminder for payment due XX/XX/XXXX. 
7 ) Screenshot of monthly payment with loans ( incorrectly ) assigned to the Level plan.

8 ) Screenshot of account approved for REPAYE as of XX/XX/XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief