Consumer complaint received 2023-12-12
Company: MOHELA
State: NV
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:
On XX/XX/XXXX, in anticipation of repayment restarting, I submitted an application for IDR to change my repayment plan from IBR to the new SAVE plan through the Studentaid.gov portal. I consented to having my information transmitted from the IRS to certify my income. On XX/XX/XXXX, I was advised that my account was placed on administrative forbearance to process the application. On XX/XX/XXXX, MOHELA advised that my application was denied because " To return to the SAVE Repayment Plan... [ I needed ] to provide income documentation and family size information for the period since [ I was ] last on the SAVE ( or REPAYE ) plan. ( Letter from MOHELA attached ). 

On XX/XX/XXXX, I advised via the MOHELA website that my income documentation should have come from studentaid.com and the IRS, and that my IDR request should not have been denied. 

On XX/XX/XXXX, MOHELA provided a repayment schedule change which reverted my previously IBR repayment plan loans to LEVEL repayment plan, which should have not occurred under any circumstances. ( Letter Attached ). 

On XX/XX/XXXX, I uploaded my XXXX tax return as supporting documentation of my income through MOHELA 's portal. 

On XX/XX/XXXX, having heard no response to my message to MOHELA, I again submitted an IDR request through Studentaid.gov. 

On XX/XX/XXXX, MOHELA advised that there would be a correspondence processing delay. 

On XX/XX/XXXX, MOHELA responded to my XX/XX/XXXX message, stating that a response would be provided within 15 business days. 

On XX/XX/XXXX, MOHELA provided the following response : " Thank you for contacting MOHELA, We apologize for any confusion. If you leave the IBR plan, your payment amount will be the standard payment amount calculated based on the outstanding balance of your eligible loans at the time you leave the IBR plan and the repayment period remaining for your loans. If you wish to repay your loans under a different repayment plan, you must first make one payment under the standard repayment plan or make a reduced payment under a forbearance agreement while on the standard repayment plan with your loan holder ( s ). 

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX. to XXXX XXXX, Tuesday and Wednesday XXXX XXXX. to XXXX XXXX, Thursday and Friday XXXX XXXX. to XXXX XXXX. CT. 
Thank you, '' This statement neither addressed the issue I raised, provided a clear resolution to the errors made by MOHELA in denying my application for IDR plan change and reverting the repayment plan to LEVEL, nor make any changes to my account, except to erroneously demand payment on the LEVEL repayment plan. 

On XX/XX/XXXX, I made a payment in an attempt to satisfy the payment requirement indicated by the XX/XX/XXXX message from MOHELA. I looked at my account, and then noticed that my second IDR application had been canceled by MOHELA, without my authorization or request. 

I was able to get into contact with a MOHELA representative/agent by telephone today, XX/XX/XXXX, who indicated that he could re-submit an IDR application and that MOHELA still had the prior tax information as received and processing, so that it could be appropriately calculated. However, MOHELA indicated that it would again put my account on an administrative forbearance to process the application. 

Because of MOHELA 's errors, I have sought and been unable to obtain pre-qualification for a home loan, have been on administrative forbearance for longer than is necessary to process my application ( s ), increasing the amount of time I need to work in public service to earn PSLF ( by placing me on forbearance for which I will not be able to make PSLF eligible payments ), and I have been given no justifiable reason as to why my initial application was denied.

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