Consumer complaint received 2024-01-18
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (CA)

My complaint and request for help is related to my MOHELA education public service loan forgiveness ( PSLF ) application with MOHELA, operated by the Department of Education. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I made my 120th qualifying payment in XXXX XXXX  and 1 ) submitted my digital employer certification form and 2 ) called to be placed on administrative forbearance while MOHELA reviewed the employer recertification form and updated my qualifying payment count to XXXX. I was placed on administrative forbearance through XXXX XXXX XXXX 

MOHELA marked my recertification form as a duplicate form. I called in XXXX XXXX  asking for them to look at it again and asked if I needed to continue the forbearance period - the response was that I could call back after XX/XX/XXXX to request another forbearance period. My employer recertification form was ( supposedly ) submitted for re-review. My administrative forbearance period ended and I was issued a bill for XXXX XXXX 

I just called today and explained the history and requested that I be placed on administrative forbearance again while they review my digital employer certification ( from XX/XX/XXXX ) and update the count to XXXX. The woman I spoke to said that I was only placed on administrative forbearance because MOHELA messed up billing so everyone was placed into administrative forbearance. While I've seen posts online, taken with a grain of salt, about this happening, I was never told that this happened to my account nor was I told about that when I was issued a bill in XXXX XXXX. She said the only way that I could be placed into administrative forbearance now ( XXXX XXXX ) was to provide tax information to be placed into a forbearance repayment plan and that I don't qualify for administrative forbearance because I haven't hit XXXX payments yet. She also told me that the last representative didn't properly submit my request for review on my XXXX XXXX employer recertification form so they haven't even looked at that yet. I asked to speak with a supervisor and after waiting on hold for 45 additional minutes, I was transferred to an automated line that said a supervisor will call me back by the end of the next business day. 

So what I took away was that if you believe you hit XXXX and submit an employer recertification ( which you have to do annually, or at every new payment since you're only certified through the date you submit the form ) you have to continue to pay until MOHELA processes the paperwork and updates your account. If you take me as an example, I would have to make 3 to 4 months of extra payments while I wait for MOHLA to work through its incompetence and process my form. So not only do I have to make additional payments but I then get to fight with them for additional months to seek a reimbursement for payments over XXXX payments, and eventually get that money back without any interest or penalty on MOHELA 's side for their lengthy processing times? That's ridiculous. 

Not directly relevant to this issue, but last year when I recertified my employer history, other forms were marked as duplicates. They all were properly dated and had different employers and lengths of employment- when I called the representative asked whether two similar sounding employers were the same. I stated they were not and referenced the different tax IDs, addresses, and signatures. The form was processed correctly within 3 days. 

Regarding my options for my XXXX XXXX bill, I see my options as 1. Not paying my XXXX bill and hoping that MOHELA processes the recertification form and updates my count to XXXX before it goes to collections OR 2. Pay the bill and then fight with them for reimbursement after the XXXX count is updated. My XXXX payment wouldn't be qualifying unless I submit another employer recert form which, based on this experience, will take another 4 months to process. Either way I am out additional money and time for a problem that was not created by me. 

I see in the 34 CFR 685.205 subd. ( b ) ( 9 ), and other nearby provisions, that there seems to be authority for forbearance while there's administrative processing time. I would like to request any help your office may be able to provide. Or, at least help with voicing frustrations with MOHELA 's incompetence that is affecting my finances, my credit, and my emotional well-being. I appreciate your time and attention with this matter.