Consumer complaint received 2023-11-11
Company: MOHELA
State: VA
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 employed by a 501 ( c ) ( 3 ). Currently 108 periods of payment have been qualified for PSLF, and a further 11 show as eligible with employment certification. XXXX would have made my 120th eligible payment period, but MOHELA 's processing delays have potentially prevented that. Moreover, MOHELA changed my repayment plan from PAYE to Level without my permission, dramatically increasing the monthly payment amount listed on my account from {$280.00} to {$2500.00}, though no payment has been due yet, and potentially impacting my ability to get back onto PAYE, SAVE, or another IDR plan. 

On XX/XX/XXXX, I submitted a request to change plans from PAYE to SAVE through studentaid.gov. I allowed studentaid.gov to access my tax history electronically to verify my income for the application. 

MOHELA received my application on XX/XX/XXXX. 

On XX/XX/XXXX, I received an electronic message on my MOHELA account with a letter post-dated to XX/XX/XXXX saying that 4 of my 5 loan sequences ( 3,4,7, and 8 ) were being put into a processing forbearance. The 5th sequence ( 2 ) still showed a payment due under the PAYE plan. 

On XX/XX/XXXX, I sent a secure message to MOHELA asking : 1 ) Why loan sequence 2 was not placed into a processing forbearance and whether it was still being considered for my SAVE application, 2 ) the status of my SAVE application and whether any further information was required, and 3 ) whether pay periods that pass while in processing forbearance would count towards PSLF forgiveness. I have received no response to this message. 

On XX/XX/XXXX, a payment under the PAYE plan amount was made for loan sequence 2 ( not in forbearance ) via auto-debit. No other loan sequences had a payment made as they were in processing forbearance. This payment was my 120th PSLF-eligible payment for loan sequence 2, and XXXX would have been the 120th eligible payment for every other sequence. 

On XX/XX/XXXX, I received an electronic message on my MOHELA account with a letter post-dated to XX/XX/XXXX saying that loan sequence 2 was being placed into a processing forbearance. There was no reply to my XX/XX/XXXX message or any explanation offered as to why loan sequence 2 was originally excluded. 

On XX/XX/XXXX, I received an electronic message on my MOHELA account with a letter post-dated to XX/XX/XXXX putting all of my loan sequences onto the Level repayment plan. I STILL have not had any communication about the status of my SAVE application. 

On XX/XX/XXXX, I sent a secure message to MOHELA requesting information about why my account was placed on Level and about the status of my SAVE application. My SAVE application is still listed as " processing '' in the documents received portion of my account, and " in review '' on the studentaid.gov website. I have not yet received any reply from MOHELA. 

I have been unable to call MOHELA. Often my work as a teacher makes it impossible to call during MOHELA 's phone hours. I need MOHELA to reply to my secure messages and explain why they have potentially delayed my PSLF by months or more by preventing me from making a payment while my loans are in processing forbearance.

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