Consumer complaint received 2023-09-07
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA (MI)

Complaint:
XX/XX/XXXX - Received email from Dept of Ed stating that I was eligible to have my loan/loan forgiven XX/XX/XXXX - Called Mohela and requested to 'opt out ' of loan sequence XXXX XXXX  and ONLY loan sequence XXXX XXXX. Requested documentation that I opted out of ONLY loan XXXX XXXX. Submitted consolidation application for this loan with my XXXX parent plus loans. Also submitted request for ICR payment plan for this new consolidation loan. 
XXXX? XXXX - Called Mohela to verify that I had only opted out of Loan XXXX XXXX.. was assured yes, only that loan. Also, again requested documentation stating that I opted out of Loan XXXX XXXX and ONLY loan XXXX XXXX 
XX/XX/XXXX - Called Mohela - still no documentation. ( I had also called Dept of Ed and they told me I had 'opted out ' ) ... XXXX Mohela rep told me I had opted out so I wouldn't be getting any forgiveness. I said, but only for loan XXXX XXXX  - correct? The rep put me on hold and waited to speak with a supervisor ( I requested to speak with a supervisor and was told I could NOT ). The supervisor then told the rep that yes, only loan XXXX XXXX. So then I ask why I was told I 'opted out ' she was ignore that, I was wrong. Ok - but still no forgiveness for my other loans. I then ask about the IDR account adjustment for my other loans. On hold again. Then I am told, you should get it, based on looking at your account. WHAT? I told you numerous times that I have already received the email. Why would I request to OPT out of one loan if I hadn't received the email. Again ask for a supervisor and am told NO. Then after she speaks with a supervisor again, I am told that Dept of Ed is still processing my IDR and I should see it in XXXX. Again WHAT? The email states that I should see forgiveness before my loan/loans go into repayment. The rep then says that they have submitted an 'escalation ' and that I should have the result of that in 3-5 business days. ( spent over 3 hours on the phone with Mohela ) XX/XX/XXXX - Called Mohela. Rep says how can I help you - I say where do I start. I give her brief synopsis and she puts me on hold. ( waited over 1.5 hours for rep ). After another 45 minutes, I get XXXX who says she is a 'customer advocate ' ( didn't even know they had these ). Anyway I explain all of what is going on - she sends me a document via secure message stating that I opted out of Loan XXXX XXXX, but it doesn't say 'ONLY ' loan XXXX XXXX. She looks into my account and tells me they did completely OPT ME OUT of all my loans. Now I am really, really XXXX ( was so, so, so afraid this would happen ). Ok, now what? She says no worries, I can 'fix ' it. Ok. She then tells me she submitted the 'correct ' request to put me back in ( again - didn't know this was possible ). She said it should be processed in 3 - 5 days but might take 30-60 to fully complete. 
XX/XX/XXXX - received email from Dept of Ed regarding payments that will be due starting in XXXX. Email is NOT like my husbands that says he has NO payment due. 
XX/XX/XXXX - submitted 'complaint ' to Mohela regarding all of this and also asked why my loans are now in repayment, as per the letter, only the loan I opted out of should be in repayment ... no response at all. Also still have the ICR request just sitting in their inbox that was submitted on XX/XX/XXXX. I need the new consolidation loan to be on the ICR so that I will get credit for my payments toward IDR account forgiveness. 
XX/XX/XXXX - Called the Dept of Ed Ombudsman group ... after hours on hold he couldn't tell me anything regarding my loans- couldn't say if they were 'opted in ' or 'opted out ' - couldn't tell me anything other than to wait and to submit a complaint on Dept of Ed 's site. ( been there done that - case has been open since XX/XX/XXXX - I received an email regarding the case on XX/XX/XXXX just containing cut and paste information regarding the IDR account adjustment from the website. And it says my case is closed. I responded to the email... the case on the studentaid.gov website just says pending with no new update. The Ombudsman rep told me that the case has been 'escalated '. Great - still no answers. I did submit a new case as he told me tell the Dept of Ed to put my loans into the 'administrative forbearance '. Still waiting for something on that case. 

I now have payments that will be due in XXXX. I wasn't planning on this as I have received the email on XX/XX/XXXX stating that my loan/loans should be forgiven. I need my new consolidation loan to be put into ICR and I need my other loans to be put into the correct status as why should I make more payments when I will already be due a refund? I have been in repayment/forbearance since XXXX! 

I have no idea what to do from here. I am sick of Dept of Ed saying to talk to your servicer and Mohela tell me to talk to Dept of Ed. The need to get on the same page and fix this! Please help. Mohela screwed this all up for me and now I am having to suffer the consequences all because someone doesn't know how to do their job! Absolutely unacceptable!!!

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation