Consumer complaint received 2024-03-06
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (RI)

I have been repaying my loans since I graduated from XXXX XXXX in XXXX. I have had no issues with any loan services prior to MOHELA. I worked for the government so I am on an income driven repayment and have been on this since graduation. Every year I recertify my income, get new payment amount and pay accordingly. This changed with MOHELA. On XX/XX/XXXX I submitted my application for the SAVE program and recertified my income for the post-pause IDR plan. they failed to process either and unilaterally switched all my loans to a level payment plan without my authorization and with no communication they were going to do so. The level payment was over $ XXXXmonth. I have called twice in XX/XX/XXXX, again in XX/XX/XXXX, 3 times in XXXX and every week beginning XX/XX/XXXX. MOHELA has failed to place all 9 of my direct loans in administrative forbearance while they find the staff and/or resources to process the SAVE application. Each call is an unreasonable hold time for anyone with a job ( averaging over 50 mins per call ). Each call is a statement apologizing for the delay and saying my only option is to suspend auto-debit and lose interest rate reductions while they sit on the unprocessed application. The most recent call on XX/XX/XXXX the agent indicated she was suspending the auto debit against my express direction not to do so. They can not provide any explanation for why all loans are not in forbearance and actually had two of the loans miscarried as a Parent Plus Loan until a supervisor reviewed the promissory note to confirm it is in fact a XXXX XXXX loan that should have been placed in forbearance with all others. The request to fix their error had not been corrected and they continue to take payments for loans that should be in forbearance until they process the application. They have failed to respond to electronic messages via their secure portal expect for boilerplate responses indicating we see youve called customer service and will assume this issue is resolved. They denied my authorization to provide information for a complaint I filed with the XXXX. When you ask to speak with a supervisor they either hang up on you or transfer you to a mailbox to leave a message but a supervisor never returns the message. I just want to determine the accurate monthly payment under the SAVE program ( which the federal loan simulator can do in real time! ) and resume making my payments to count towards the 25 years of on time payments and MOHELA is preventing this. If I had known the SAVE application would have triggered this I would have never applied for it and just stayed on the IDR plan. As far as I am concerned the SAVE program and MOHELAs failure to admit applicants into the program is a scam. The increases in interest on the loans for the 5 months of processing benefits no one expect MOHELA. I need help! I have tried everything short of filing a lawsuit against them. How was this entity selected to handle billions in federal student loans? How has a class action lawsuit not been filed against MOHELA for their inability to accurately administer the federal student loans?