Consumer complaint received 2024-04-27
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (FL)

First, my account has been improperly placed into a forbearance and/or deferment, when it should have been in the SAVE plan so that all months count toward my student loan forgiveness. I have been on an IBR repayment plan for my entire repayment period since XXXX. When my loans were transferred to MOHELA, Mohela improperly removed my loans from IBR and put them into a standard repayment plan - more than doubling my monthly payment amount. Prior to that, my loans were all on the REPAYE plan. Accordingly, all of the loans should have been automatically moved onto the SAVE plan. This was not done. Inexplicably, without my consent or request, MOHELA placed all of my loans onto the Standard/Level repayment plan. 


To fix these issues that MOHELA themselves caused, MOHELA placed me on administrative forbearance and/or deferment. I need to be removed from deferment or forbearance immediately! I need my monthly SAVE payments to be made so I can qualify for loan forgiveness! I have been repaying these loans since XXXX. Because of MOHELAs actions, my forgiveness is going to take even longer and this is NOT right. Their actions appear fraudulent. 

The only repayment amount that was ever correct was the letter from MOHELA dated XX/XX/XXXX. This letter showed that all of my loans that had been transferred to MOHELA for servicing were placed on the REPAYE plan. This is the same plan I have been on for over 10 years. I have been on IBR repayment since XXXX. I never, ever asked to be placed on a standard or level repayment which is what MOHELA unilaterally did to my loans. 

MOHELA illegally capitalized my interest. MOHELA illegally charged me interest even after my account was placed onto the SAVE repayment plan. The SAVE plan is supposed to PREVENT the accrual of interest so long as all payments are made. 

As of XX/XX/XXXX I am unemployed and my monthly payment under the SAVE plan is supposed to be XXXX. Instead of listing my payment as XXXX dollars, MOHELA still has my account listed as in forbearance and/or deferment. I need the account to be take out of forewarned immediately and placed into the SAVE plan with a XXXX dollar payment so I can continue to progress toward loan forgiveness that I am entitled to after diligently making payments for the past 18 years, I am writing to request that all IDR applications processed by MOHELA after XX/XX/XXXX, be reversed and deleted. 

All IDR applications after XX/XX/XXXX, should never have been approved because MOHELA coerced me into submitting them under the false pretense that I needed to submit a new IDR application. In fact, there was no need to submit ANY new IDR applications. MOHELA was supposed to simply convert my REPAYE plan to the SAVE plan pursuant to the direction of the Biden administration. This was not done. Instead, MOHELA made me submit numerous applications each time I called in and then placed me on forbearance and deferment that set me back on my repayment schedule. 

Under the federal regulations, my IDR application, that was approved on XX/XX/XXXX, should have been the only IDR plan in effect on my account until the recertification which was due in XX/XX/XXXX. 

As a result - All past due amounts ( and interest ) that has accrued on the account is the WRONG amount. 

On XX/XX/XXXX, I was approved for the REPAYE plan for all of my loans, which are unfortunately serviced by MOHELA. The total monthly payment was set at {$1100.00} on XX/XX/XXXX. 

Please recalculate the past due amounts and accrued interest pursuant to the monthly payment- {$1100.00} - as set forth in the IDR approval letter dated XX/XX/XXXX. 

The monthly payment on this account was set at {$1100.00} on XX/XX/XXXX and should not have increased. 

After XX/XX/XXXX, your company wrongly placed all of my loans onto the standard level plan. I never requested this change. 

My loans should have remained on the REPAYE plan and converted to the SAVE plan - according to federal regulations. 

My loans have ALWAYS been on an income based repayment plan- for over 10 years. 

On XX/XX/XXXX, I became unemployed. I submitted a new IDR application reflecting this status change. Your system rejected my IDR application as duplicate. That was incorrect!! The XX/XX/XXXX XXXX application was not a duplicate. It was submitted due to my income change to {$0.00} ( XXXX dollars ). 

Please change my income to XXXX, place me on the SAVE plan immediately with a XXXX dollar payment. Remove the accrued interest which has wrongly accrued the account during the time that I have been unemployed. Remove my account from administrative forbearance and count the preceding 6 months toward my total forgiveness count while you correct these issues including the incorrect past due amounts and interest. 

Thank you. 
XXXX XXXX XXXX