Consumer complaint received 2024-06-23
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (TX)

I am writing to formally lodge a complaint against my student loan servicer, Mohela, concerning significant errors in the management of my student loan account, specifically regarding an unrequested placement into forbearance. This issue has not only caused financial detriment but has also impacted my eligibility under the SAVE plan, which is critical for managing the accrued interest on my loans.

Background and Timeline of Events : XXXX. XX/XX/2024 : Contacted Mohela to request a new payment due date at the end of each month instead of the middle of the month. They set my payments for the XXXX and I requested the XXXX. 
XXXX. XX/XX/2024 : Made the scheduled payment. 
XXXX. XX/XX/2024 : Discovered that the subsidized portion of my Direct Loan was incorrectly placed on forbearance, while the unsubsidized portion was not affected. 
XXXX. XX/XX/2024 : After escalation to a supervisor, I was assured that the issue would be resolved by XX/XX/XXXX and that the payment made on XX/XX/XXXX would be accounted for when the next payment was due. And to not worry because all interest would be covered through XXXX by the government to account for the implementation challenges. 
XXXX. XX/XX/2024 : Payment for XXXX is recorded as payment for XX/XX/XXXX. XX/XX/2024 : Received notification that my account was retroactively in forbearance from XX/XX/XXXX until XX/XX/XXXX and the payment I made was then moved back to XXXX on record. 
XXXX. XX/XX/2024 : Called Mohela and was given different information and they said they could do nothing about the forbearance and I was stuck on a general forbearance until XX/XX/XXXX. 
XXXX. XX/XX/2024 : Sent a complaint to the Ombudsman on the Federal Student Aid site for support and recourse. It is still pending. ( see case description below ) XXXX. XX/XX/2024 : Received notification that my next payment is due XX/XX/XXXX. 
XXXX. XX/XX/2024 : Contacted Mohela to have XXXX payment count for XXXX as communicated by supervisor that my payment would be moved to the next owed payment since I unbeknownst to me the XXXX payment was not owed yet. Call was dropped while on the line with a supervisor who was looking into it, and while on hold while she was researching the call was dropped and she did not call back. 
XXXX. XX/XX/2024 : Sent an email after call was dropped and after several days they responded that I needed to call them back. 
XXXX. XX/XX/2024 : {$4800.00} in interest has accrued because of the unrequested forbearance and I was not able to make payments or take advantage of the benefits of the SAVE plan which would have meant the interest would have been paid by the government. 

Issues to be Addressed : Unrequested Forbearance : The forbearance was applied without my consent and contrary to my explicit request to continue making regular payments, directly impacting my financial planning. 
Financial Impact : Due to this forbearance, I have accrued XXXX in interest as of XXXX, XXXX XXXX, which under normal circumstances would have been subsidized under the SAVE plan.

Payment Count : The last several months, which should have counted towards my overall payment count for eventual loan forgiveness eligibility, have been omitted due to this administrative error.

Resolution Sought : I request a thorough review of my case by your office. It is my strong recommendation that Mohela be instructed to : Allow me to retroactively make payments for the months placed in forbearance. 
Ensure these payments count towards my total payment count as originally intended. 
Subsidize the accrued interest during this period as per the SAVE plan stipulations. 
This situation not only undermines my financial stability but also erodes trust in the systems meant to support borrowers like myself. I trust hope that your organization will uphold the rights and protections meant for student borrowers. 
Thank you for your attention to this urgent matter. I look forward to your swift response and am hopeful for a resolution that rectifies these significant errors. 
Case description submitted to Ombudman on Federal Student Aid site : I am writing to lodge a complaint against my student loan servicer, Mohela, concerning significant errors in the management of my student loan account, specifically regarding an unrequested placement into forbearance. This issue has not only caused financial detriment but has also impacted my eligibility under the SAVE plan, which is critical for managing the accrued interest on my loans. Background and Timeline of Events : XX/XX/2024 : Contacted Mohela to request a payment due date at the end of each month.Was advised it would take several months before the new date would be in place. XX/XX/2024 : Made the scheduled payment for XXXX. XX/XX/2024 : Discovered that the subsidized portion of my Direct Loan was incorrectly placed on forbearance, while the unsubsidized portion was not affected. XX/XX/2024 : After escalation to a supervisor, I was assured that the issue would be resolved by XX/XX/XXXX and that the payment made on XX/XX/XXXX would be accounted for on the next due date. XX/XX/2024 : Received notification that my account was now in forbearance until XX/XX/XXXX retroactive to XXXX. Issues to be Addressed : Unrequested Forbearance : The forbearance was applied without my consent and contrary to my explicit request to continue making regular payments, directly impacting my financial planning. Financial Impact : Due to this forbearance, I have accrued {$3800.00} in interest as of XX/XX/2024, which under normal circumstances would have been subsidized under the SAVE plan. Payment Count : The last three months, which should have counted towards my overall payment count for eventual loan forgiveness eligibility, have been omitted due to this administrative error. Attaching record of phone conversations in XXXX and XXXX, as well as the contradictory forbearance letters.