Consumer complaint received 2024-03-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (IL)

Please note I had multiple other phone calls with Mohela regarding PSLF prior to this date, however, I started documenting them in XX/XX/XXXX because it was clear things were being mishandled. 
XX/XX/XXXX o Received notification that my loans were being put in administrative forbearance. Called Mohela because I did not request this. 
o Spoke with XXXX o She stated that I was on the Level payment plan and confirmed that this is compatible with PSLF. 
o I asked if I can go on an administrative forbearance when I get closer to 120 payments ( as I was previously advised by Mohela ). She said no. I can not go on an administrative forbearance until my payment tracker says 120 qualifying payments XX/XX/XXXX o I was unable to get some previous employers to certify my employment due to staff turnover. I was advised to upload my W2s. I did this when my loans were still at XXXX. I uploaded them all again in XX/XX/XXXX, individually with the form and W2 to Mohela as was requested. 
o Spoke with XXXX o I inquired about what was taking so long for my W2s to be reviewed as I had been told that it could take up to 90 days and we were now at that threshold. XXXX stated that she would put in a request to expedite the processing of my W2s and that this should move me to the top of the list. She stated I would receive notification by XX/XX/XXXX that someone was working on this task. 
o Also inquired about my monthly payment because the statement was only showing loans 3-7. She did not know why the statement was only showing those loans but advised that the monthly payment is {$440.00} XX/XX/XXXX o I called because the W2s still had not been processed and to request a refund for the payments made in XXXX XXXX and XX/XX/XXXX since these were the months I was placed in an administrative forbearance and could use that money now instead of waiting for them to apply it to loans in the future. 
o Spoke with XXXX o Regarding the W2s : XXXX stated that the request to expedite processing of my W2s was cancelled because Mohela is very far behind in processing documents. She stated that at this time, average processing time for W2s is 82 days. I advised that it had already been well over the 90 days I was told previously. XXXX stated that as of this date, they were processing W2s from XX/XX/XXXX and that mine should be processed by the end of XX/XX/XXXX ( this would be five months since I uploaded them the second time ). 
o On this date, I requested a refund for the payments I made during the administrative forbearance that was placed on my account for the months of XXXX, XXXX, and XX/XX/XXXX in the amounts of {$730.00}, {$570.00}, and {$320.00} respectively. 
o XXXX stated that she would submit the request for the refund and that it would take 10 days for the refund to be processed. 
o I inquired, What is it doesnt occur within those 10 days? XXXX stated, Wait another 30 days. When I asked what that 30-day timeframe was referencing, she had no answer, just to wait. 
XX/XX/XXXX o I called to address the following problems : XX/XX/XXXX was no longer being counted as a qualifying payment month, I received a notice stating that my account was now 30 days past due, and I inquired about my refunds as I had not received them yet. My billing statement dated XX/XX/XXXX shows current amount due on XXXX {$0.00} and amount past due= {$0.00}. Billing statement dated XX/XX/XXXX shows amount past due= {$0.00} and current amount due on XXXX {$440.00}. 
o Spoke with XXXX. 
o Regarding XX/XX/XXXX no longer being counted as a qualifying payment, she stated that they are working on fixing these and that there is no estimated timeframe for this to be corrected. 
o Regarding the notice I received stating the account was 30 days past due, she stated a task was entered on XX/XX/XXXX regarding this and that it generally takes 2-3 business days to process these tasks. 
o XXXX stated that these two issues are related, they will process the task and everything will be corrected. 
o Regarding the refunds since it had been more than 10 days, she stated Due to backlog, refunds can be delayed up to 60 days regardless of the type of refund. XXXX confirmed that the request for the refund was submitted on XX/XX/XXXX. 
o I was then transferred to XXXX with the advanced team. 
o XXXX stated that XX/XX/XXXX not counting as qualifying and the past due amount are two separate issues ( contrary to what XXXX stated ). 
o XXXX stated that the mandatory forbearance that was placed on my account was entered incorrectly and ended on XX/XX/XXXX instead of XX/XX/XXXX. She stated she can correct this to have the end date be at the end of XX/XX/XXXX like it should be. This reportedly takes 2-3 business days to correct. She also stated that this will correct the issue of XX/XX/XXXX not counting as qualifying and will correct the account being 30 days past due. 
o XXXX had no information or update on when I can expect the refunds previously requested. 
XX/XX/XXXX o I had my husband call. 
o Spoke with XXXX who was reported to be in training but with her trainer. 
o XXXX stated the refund was authorized on XX/XX/XXXX and will be back in our checking account on or around XX/XX/XXXX but that it takes approximately two weeks. 
o He was then transferred to XXXX and her support team. 
o XXXX stated that the administrative forbearance was only applied to XXXX and XX/XX/XXXX. When we requested the refund for the forbearance period, it was processed and then left XX/XX/XXXX being due because the forbearance wasnt applied. 
o XXXX stated that XXXX should have had an amount due on the statement but that somehow it did not. 
o XXXX stated there is no credit reporting until 90 days past due XX/XX/XXXX o I called because I received another notice stating that I am behind I payments still and because I still have not received the refund. 
o Spoke with XXXX XXXX XXXX stated that the forbearance had been updated to reflect the end of XX/XX/XXXX but that the account is still showing a past amount due from XX/XX/XXXX in the amount of {$330.00}. 
o XXXX had no update on my refund or when it should be expected. 
o I spoke with my husband who looked at the account after I got off the phone. 
o The account was still showing that I owe for XX/XX/XXXX and that XX/XX/XXXX is still not counting as a qualifying payment. The amount due ( {$330.00} ) still includes the amount from XX/XX/XXXX Please note that I have pictures of the account and statements, however, they are too large to upload and I am unable to make them any smaller.