Consumer complaint received 2023-08-15
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (FL)

I was notified I was eligible for loan forgiveness in XXXX. My loans have been in repayment for 30 years. 

I called Mohela at XXXX on XX/XX/XXXX. I spoke to a trainee who told me I was not eligible for any forgiveness and then was transferred to XXXX who identified as a Supervisor in the customer support area. I asked her if I should consolidate the two smaller loans into the larger. She said I should. I then told her I needed to opt out of the IDR adjustment until the consolidation completed. She said I did not need to do that. She said that no forgiveness would occur before the end of the year and consolidation would be done. I told her I was supposed to be forgiven in XXXX and needed to opt out. She refused and told me to consolidate. She would not let me opt out. 

I started loan consolidation. On XX/XX/XXXX, after hearing from other borrowers that I must opt out, I reached out to XXXX ( no response ), CFPB ( sent complaint to Mohela, no response ), Mohela via messaging ( responded with form letter and link to FSA and didnt answer question ), DOE ombudsman ( no response ), XXXX XXXX XXXX services ( no response from people they contacted ), XXXX  ( Mohela wont respond to them ) and TISLA ( no response from Mohela ) for guidance about opting out as I was concerned. 

This morning, I saw that the larger loan was forgiven on Mohelas website. But they added the interest from the larger loan to the two the smaller ones that are in the process of consolidation. A balance of about $ XXXX has ballooned to overnight $ XXXX, and most of that is interest on a now-forgiven loan. 

I called Mohela at XXXX. 

XXXX told me that the loan consolidation process had started and interest was transferred, and Id just have to pay it. 

She transferred me to XXXX XXXX XXXX? ). She says these things : - The loans are not finished being forgiven and maybe the interest wont be there in 10 days. 

- I only owe $ XXXX. 

- Theres no such thing as opting out. Forgiveness happens when it happens. 

- Did I want to stop the loan consolidation? She didnt know what that would do or if it would reset a clock to day XXXX now. So I dont know. 

- Did I want to stop the IDR adjustment? Also did not know impact of that but balance would return. She has no idea if I would get another chance. 

- I have no recourse for following XXXX bad advice but to pay my loans. Theres no process for complaints or recourse or accountability. XXXX wont even be reprimanded. 

The call ended at XXXX, and I told her to do nothing right now because she obviously didnt know what she was doing. 

I followed the advice of XXXX the Mohela Supervisor to the letter. Im now in debt for $ XXXX on two loans totaling $ XXXX, when I started consolidation and was refused the opportunity to opt out by my servicer so that all loans would be forgiven. 

I have spent years being directed into forbearance and into deferment and into IDR and so on. Theres no accountability. Theres no recourse for bad advice. This was my ONE chance. And its gone. 

Mohela has no process to correct to this and does not care. This feels like a deliberate attempt to raise my balance and keep me indebted for far longer than I deserve. 

Please help me. Ive done everything I can do. 

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