Consumer complaint received 2023-11-16
Company: MOHELA
State: CO
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Problem with customer service

Complaint:
I am writing as a new client of MOHELA who has experienced nothing but issues and frustration dealing with the customer service of your company. As if student loan repayment isnt stressful enough, in working with MOHELA I have experienced nothing but miscommunication, lack of accountability and people who are unable to follow through with their word to help me. I have lost all trust in MOHELA to provide me with adequate service, and want to speak with someone who has the ability to make change. Nobody over the phone seems to be able to find anyone. 
I applied for loan consolidation and the SAVE Plan through Federal Student Aid on XX/XX/XXXX. I had extensive communication with Federal Student Aid ( who was wonderful ) before this, as I was unsure that XXXX was the right time to apply for consolidation. I finished graduate school in XXXX, and had the option to continue my loan deferment until XX/XX/XXXX. Federal Student Aid informed me the timeline for consolidation/application processing would be 6-8 weeks, and with a new job that qualifies for PSLF, I would get to start my PSLF qualifying months sooner if I applied for consolidation/IDR and could start paying toward my loans in 6-8 weeks. XX/XX/XXXX is the ONLY application I have ever placed. 
Around XXXX, I began receiving mail from MOHELA regarding my consolidation, with the confirmation that my consolidation had been processed on XX/XX/XXXX. Based on the information I received from XXXX XXXX XXXX, my XXXX XXXX application would begin to process when my consolidation was finalized. On XX/XX/XXXX around week XXXX of the application process, I called MOHELA to check on the status of my XXXX being finalized. Not only had my IDR not begun to process at this point, but I had a bill in my MOHELA account for my first loan payment which would now be {$890.00}. I spoke with a representative at MOHELA, who informed me that they would be able to send my application in for expedited processing at this point, which would be about 7-10 business days. They let me know there was nothing they could do to change my bill of {$890.00}, even if the IDR were to process before my payment was due, but I could go into forbearance. Then I could come out of forbearance for the payment following the processed application. I told them I would think on it, and call back with a final answer. 
On XX/XX/XXXX I received correspondence that my loan automatically went into forbearance, AND that there is a processing delay with applications, meaning my IDR would take up to 90 days to process from the date of application- which was now listed as XX/XX/XXXX. I did not submit another application, nor did I approve anyone to submit a new application for me, which confused me as to why my date had been changed to the day of my last phone call. I placed a phone call to MOHELA to discuss this change and spoke with another customer service representative. This representative informed me there was a document/application uploaded to my account on XX/XX/XXXX which is why that is the date. I coordinated with the representative to explain the above, who then got her manager involved to help resolve the issue of the new date. The representative on XX/XX/XXXX alongside her manager, told me that they would submit my IDR application for process, and the processing would be completed in 3-5 business days. The forbearance was set to end on XX/XX/XXXX, and it would not need to be extended as the IDR application would be processed by this time, and the XXXX would be in place for my XXXX payment. 
On XX/XX/XXXX I received another correspondence that there is a processing delay with applications, meaning my IDR would take up to 90 days to process from the date of application- which was now listed as XX/XX/XXXX. I can assume you imagine my frustration that not only did my application not process in the 3-5 business days, but my application date had been pushed back FURTHER, to again the last date I spoke with someone. Yet again another document/application was listed in my account as uploaded on XX/XX/XXXX, yet the only application I ever submitted was XX/XX/XXXX. On XX/XX/XXXX, I reached out to MOHELA representatives, and my calls were dropped by two of customer service representatives, and NOT RETURNED ( even with me giving permission to call me back during the call ) causing me to need to get back in line and wait to speak to someone for XXXX hours total. When I spoke with someone, he was extremely dismissive and continued to ask me over and over again what would you like me to do for you. I asked him to help me understand why my application was being bounced all over the place, and he continued to tell me processing is delayed. There is nothing I can do to expedite you application, which is contradicting information to the people I have spoken with previously, one saying they could expedite it 7-10 business days, and the next call, 3-5 business days. I asked to speak to someone above this representative, and while waiting this call was also dropped, and never returned. 
On XX/XX/XXXX, I reached out to both Federal Student Aid to try and get some help. Federal Student Aid was unable to offer assistance, as my loans have fully transferred to MOHELA. They suggested I file a complaint with Federal Student Aid, as MOHELA has been delivering inconsistent information and has been unable to support me. They also suggested I begin to keep a record of names that I have spoken with. 
I received another correspondence on XX/XX/XXXX that a student loan billing statement had been posted by MOHELA- my forbearance is set to end on XX/XX/XXXX, and on XX/XX/XXXX I have an {$890.00} payment due. At this point, I am defeated. I have gotten nowhere with all of the conversations I have had. I was told many times over by different people that my IDR could be expedited, then told it couldnt. I was told the forbearance ending wouldnt bring me issues because my IDR plan would be in place by then. But the forbearance ending without the IDR plan in place creates many issues, because I still cant afford this payment. 
On XX/XX/XXXX, I spoke with XXXX at MOHELA. I explained my situation and she reviewed my chart. Based on her chart review, XXXX informed me that my IDR application has been assigned to a representative, and within 2 business days should be updated in my account ( end of day XX/XX/XXXX ). She informed me that the correspondence in my online account/mail may take XXXX days to appear, but the account itself should be updated by the end of day XX/XX/XXXX. She also informed me that once the IDR was processed, my XXXX billing statement would automatically update to reflect the new XXXX payment plan. I questioned the fact that I was told before that once a billing statement is sent, there is nothing anyone can do to change it, even if a new payment plan is processed. Once again, I was told that I was given incorrect information previously. Today, XX/XX/XXXX I logged into my account to see that once again the timeline I was given was incorrect and my XXXX plan has not been processed, nor has my account been updated with a new payment. I called and spoke with XXXX with MOHELA customer service team who informed me that the processing of my documents has been marked as a duplicate task, including my application ( the only application I submitted ), meaning yet again nothing has changed or been processed. 
The inconsistent communication and lack of continuity has made this experience unbearable and has created immense stress over finances and navigating student loans. It is absolutely in-excusable the way I have been treated throughout this process. MOHELA has been a nightmare to work with and has created more problems than they have solved. Clients should not be treated this way by a government organization, and the lack of accountability has been truly abysmal. If I connected and communicated with people in my job in this way, without follow through or fixing the problems I created, I would be fired immediately. Communication is a huge part of customer service, and currently MOHELA is failing to provide adequate service in any capacity. I am more than frustrated at this point and I dont know what to do to fix this as talking to people isnt working.

Company response to consumer: In progress