Consumer complaint received 2024-02-09
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (CA)

To Whom It May Concern, I consolidated my student loans in XX/XX/XXXX and simultaneously applied for the SAVE plan for my new consolidated loan, however when my new loan appeared on Mohela 's website at the end of XXXX it showed I was NOT enrolled in the SAVE plan as I requested, but an Income Contingent Repayment Plan. I called Mohela on XX/XX/XXXX and spoke with several different agents to try and get back in SAVE and figure out what was going on. One agent told me I " termed out '' of SAVE because I had been in it for a year ( not true I didn't even know SAVE existed a year ago ). I was also told by another Mohela rep that Mohela 's system said my consolidated loan did not qualify for SAVE. This was also incorrect information as each of the individual loans that were consolidated qualified for SAVE individually and were each enrolled in the SAVE plan previously. The studentaid.gov site also showed me the SAVE plan as an option for the consolidated loan although Mohela 's website and agents did not. After speaking with several different Mohela reps I confirmed that I did not have any parent plus loans and no one could figure out why my consolidated loan wasn't in SAVE as I requested. I was told by one Mohela agent they put me in an XXXX plan for my consolidated loan because that was the " cheapest plan '' for me, however it is NOT the cheapest plan. SAVE would be the cheapest according to studentaid.gov because my income would qualify for XXXX XXXX/month payments and a NO accrued interest. 
One of the Mohela agents I spoke with on XX/XX/XXXX said he could not figure out why I didn't qualify for SAVE, but to save me some money he said the best course of action would be to have me verbally apply with him to open another XXXX plan application right then and include my current income which would lower my bill to {$150.00} per month from {$250.00}. He had me verbally apply to be in XXXX on the phone with him. He also told me to manually fill out an IDR application and upload it to Mohela 's website to be in REPAYE which he said is the old SAVE plan. In all, multiple applications were opened for me.

After speaking with Mohela 's Supervisor XXXX last Saturday she said the agents should have seen my original SAVE application from XXXX for my loan consolidation. This was the first I was even hearing that they had my XXXX application. She told me it takes a while to process SAVE applications and the Mohela agent should not have opened another XXXX application for me as it is delaying my original SAVE application for the consolidated loan from XXXX. Being misled and delay of being in SAVE with XXXX XXXX/payments and accrued interest being covered has cost me accrued interest on my loan as of XX/XX/XXXX of {$1000.00} and it is increasing every day that I am not in SAVE. According to Mohela 's website I am still in XXXX as Mohela has not yet placed me in the SAVE plan. My requests to Mohela have been met with emails saying there is a " correspondace processing delay. '' My payment is {$270.00} due at the end of XXXX and Supervisor XXXX told me she doesn't think Mohela will be able to process my SAVE application and have me in the right plan until maybe the beginning of XXXX further costing me more money. She indicated the multiple applications and the XXXX application are likely delaying my original SAVE application. I am very frustrated. 

Supervisor XXXX said the agent who filled out the XXXX plan on the phone for me should not have done that but he may have been in " training. '' I understand everyone goes through training, however this is a problem and I was misled by more than one Mohela agent. Also why when my consolidated loan " go live '' on Mohela 's website did it show was I placed in an ICR plan? An XXXX plan generates more accrued interest for Mohela. To make matters worse, Mohela is generating interest off a total sum owed that includes $ XXXX pandemic pause payment that I requested to be reimbursed a year ago on XX/XX/XXXX and I have not yet seen despite getting an ombudsman and both of our multiple requests to Mohela ( I have a filed a separate CFPB complaint for the missing XXXX ). Mohela needs to reimburse accrued interest generated from this consolidated loan not being in SAVE as a result of being misled by their agents. 


Thank you for your help on this matter, XXXX XXXX