Consumer complaint received 2023-03-19
Company: MOHELA
State: NY
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
I write to alert you of MOHELAs mishandling of my IDR application, and I ask for your help in resolving this problem. Specifically, MOHELA improperlyclaimed it is unable to grant my request for IDR relief because it could not verify my husbands income. As described below, my husband properly completed the Federal Student Aid co-signing requirement, which linked his IRS account to Federal Student Aid and should have provided MOHELA access to his tax returns, and we were provided written confirmation that my application was complete and we would affirmatively receive any additional information needed. 

I believe that MOHELA can resolve this matter by ( 1 ) approving my IDR application, thereby providing me with affordable monthly payments in the amount of approximately $ XXXXmonth, as verbally offered to me by a MOHELA representative XXXX and ( 2 ) compensating {$3500.00} me for my time and effort. 

My federal student loans were transferred from XXXX to MOHELA on or about XX/XX/XXXXXXXX. Pursuant to the PSLF Temporary Waiver, I submitted a joint application to consolidate my loans and for an income-driven repayment plan via Federal Student Aid.gov on or about XXXX XXXX XXXX ( see Exhibit A email confirmation attached ). On XX/XX/XXXXXXXX XXXX, my husband co-signed the consolidation/IDR application ( see Exhibit B email confirmation ). I have attached my completed consolidation/IDR application as Exhibit C. Please note that as part of each confirmation the instructions clearly say to wait for correspondence from your servicer regarding any further documentation needed. I never received any additional requests for documentation regarding either my consolidation or IDR request. 

My loans were appropriately consolidated in XX/XX/XXXXXXXX XXXX. By XX/XX/XXXXXXXX XXXX, however, I still had not heard anything about my IDR request. I called MOHELA on XXXX XXXX XXXX and was advised that there was an issue with my IDR application. MOHELA did not specify what the issue was or what, if anything, I needed todo torectify it. I was instructed to call back the next week forfurther information. 

I called MOHELA again on XX/XX/XXXX XXXX XXXX. I was told that the problem with my IDR application was that I had not been counseled as to the various plan options available. MOHELA provided me with a description of the plans available and confirmed that my IDR application was complete and would be assessed shortly. I received email confirmation that I received this counseling, which is annexed hereto as Exhibit D. 

By XX/XX/XXXX, I still had not received any communication about my IDR application. I called MOHELA on XX/XX/XXXX. I was first told that I needed to submit an entirely new IDR application, but then the representative was able to speak with a supervisor and confirmed that my application was complete and there was just a delay in processing. After explaining to MOHELA the critical need for an IDR approval due to my pending LRAP application, I was promised that MOHELA would provide a letter on its letterhead and explaining this delay as well as provide an estimate of what myreduced payments would be under an eligibleIDR plan.The representative promised me that I would receive this letter within 30 days. 

I had not received any letter by XX/XX/XXXX. I called MOHELA and was told that, rather than providing a letter, they would simply expedite my IDR application and I would receive a decision within 1-2 days. 

By the next week, I still had received no correspondence regarding my IDR application. I called MOHELA on XX/XX/XXXX, and was told for the second time that my application was delayed because I had not been counseled as to the various plan options. MOHELA counseled me again, and I have email confirmation thereof ( Exhibit E ). I was told that my application would be expedited and I would have a decision on my application within 1-2 days. 

On XX/XX/XXXX, I received a letter on my MOHELA stating that they could not grant my IDR request on the grounds that MOHELA lacked documentation of my spouse 's income. The letter is attached hereto as Exhibit F. 

I believe this determination is unfair and incorrect and MOHELA should reverse it immediately. My written instructions were that my application was complete, and that I should receive notice of any further documentation if necessary ( Exhibit B ). At no point did MOHELA ask me for additional documentation of my spouse 's income. My husband provided access to his IRS account and therefore MOHELA certainly had access to his most recent tax information. For MOHELA to claim it can not grant my application based on documentation that it either already had, or was under explicit direction to affirmatively request and which was not affirmatively requested, is unfair and deceptive. 

Finally, I spent over 4 hours on the phone with MOHELA trying to get clarification of how to expedite and obtain approval on this IDR request. At no point did MOHELA advise me that it needed further documentation of my husband 's income. If it had asked, I would have provided it promptly. 

While MOHELA should not need any further documentation, out of an abundance of caution I am providing all of my husbands most recent income documentation to MOHELA via portal upload ; fax, and regular mail. I am including my cover letter for this documentation as Exhibit G ; MOHELA has no excuse for claiming it lacks my husbands information ( or any information, for that matter ). MOHELA should immediately approve IDR application and provide me with an affordable payment plan. 

MOHELA owes me at least {$3500.00} for : the time I spent on the phone with them, time I spent drafting this complaint, time I spent gathering documents and documenting my attempts at communication with MOHELA, consulting with attorneys ( and the attorneys ' time consulting with me ), lost sleep, emotional distress, and my husband 's time trying to help me resolve this issue, among other things.

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