Consumer complaint received 2025-03-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: KY

Complaint narrative:
I applied for loan consolidation on XX/XX/XXXX during which I requested an Income Driven Repayment Plan ( IDR ). My loans were consolidated but I was placed on the standard plan despite explicitly requesting IDR. I messaged the following to Mohela on XX/XX/XXXX and, while waiting for a response and after talking to a representative from XXXX, preemptively submitted another IDR request separate from the consolidation application on XX/XX/XXXX : From me : " Hello, My account says I have a payment due XX/XX/XXXX but I have not received any information on what my repayment plan will be. I submitted a request for the IBR plan that was approved on XX/XX/XXXX but I do not see that reflected in my account. Do I need to resubmit the request? Please let me know. Thank you! '' Mohela Response : " Thank you for contacting MOHELA, We received your Income-Driven Repayment ( IDR ) Plan request on XX/XX/XXXX. 

MOEHLA will place your account into a Processing Forbearance for up to 60-days. During this forbearance interest will accrue and the periods spent in this forbearance will be eligible for Public Service Loan Forgiveness ( PSLF ) and IDR forgiveness credit. 

If the litigation remains ongoing your account will be placed on a General Forbearance with 0 % interest through XX/XX/XXXX, this period will not count towards PSLF or IDR forgiveness. Borrowers can make a payment during the forbearance and that payment will be applied to future bills due after the forbearance ends. 

Borrowers should expect a lengthy delay in the processing of applications. Further communication will be provided as this develops. 

Additional details pertaining to the impacts of this stay will be provided as they become available. You may also visit StudentAid.gov/saveaction and Ed.gov/SAVE for updates. 


If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX, Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX, Thursday and Friday XXXX XXXX XXXX XXXX XXXX XXXX 
Thank you, MOHELA '' On XX/XX/XXXX I got notice that my IDR application was completed by Aidvantage which is why I was advised to submit an additional request. The representative from XXXX informed me that, at times, Mohela will not accept IDR approval from XXXX and a separate application may be required. 

As of XX/XX/XXXX I still had heard nothing from them regarding my forbearance so I sent the following message : This was the message I sent on XX/XX/XXXX : Hello ; I put in a Income Driven Repayment Request in XXXX and have not heard back yet. I am continuing to receive mail stating that I am required to pay on the standard repayment plan starting XX/XX/XXXX. When am I going to hear back about what my payments will actually be? I am expected to make this payment in XXXX? Please advise me on what I should do. Thank you! 

Second Message from me on XX/XX/XXXX : Hello ; I put in a Income Driven Repayment Request in XXXX and have not heard back yet. I am continuing to receive mail stating that I am required to pay on the standard repayment plan starting XX/XX/XXXX. My mail stated that I would be paying {$700.00} but when I called it said that I owe {$1600.00}. I can not afford either of these payments which is why I have submitted multiple IDR requests to both you all and XXXX during the consolidation stage. When am I going to hear back about what my payments will actually be? I am expected to make this payment in XXXX? Please advise me on what I should do. Thank you! 

I called MoheIa and waited on hold, on the phone, for over three hours before speaking to a representative from Mohela who informed me that he would be placing my account into the forbearance for individuals who applied for the IDR plan.

Over a week later, this was Mohela 's response : " Thank you for contacting MOHELA, Our records indicate that you have already called and spoken to one of our Customer Service Representatives regarding this inquiry. If you need additional assistance, please contact us at the number listed below. 

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX., Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX., Thursday and Friday XXXX XXXX XXXX XXXX XXXX XXXX 
Thank you, MOHELA '' As of XX/XX/XXXX I was still not placed into the forbearance and began getting late payment notices for my student loans so I sent the following message : " Hello, I spoke with someone on XX/XX/XXXX and they placed my account into a forbearance while my IDR application is being processed ; I just wanted to verify that this went through and that I am not obligated to make my payment of {$700.00} on XX/XX/XXXX. Please advise so that I can keep my account in good standing. Thank you! '' Mohela 's response : " Thank you for contacting MOHELA, Effective XX/XX/XXXX, Federal Student Aid ( FSA ) advised servicers to temporarily pause processing of all Income-Driven Repayment ( IDR ) applications. Borrowers should expect a lengthy delay in processing of applications once resumed. We do not currently have an estimate of how long this pause will be in effect.

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education ( SAVE ) Plan and parts of other Income-Driven Repayment ( IDR ) plans. As a result, the IDR and online loan consolidation applications are temporarily unavailable. Borrowers can still submit a paper loan consolidation application. 

If you applied for IDR on or after XX/XX/XXXX, your loan [ s ] will be placed on a 60-day Processing Forbearance. During the 60-day Processing Forbearance, interest will accrue, and the periods spent in this forbearance will be eligible for Public Service Loan Forgiveness ( PSLF ) and IDR forgiveness credit.

If servicers need additional time to process your application, your loan [ s ] will be placed on an Administrative Forbearance. This forbearance is interest free and does not count towards PSLF and IDR forgiveness credit. 

Borrowers, and employers on borrowers behalf, can make a payment during the forbearance. That payment will be applied to future bills due after the forbearance ends. 

Additional details pertaining to the impacts of this injunction will be provided as they become available. You may also visit StudentAid.gov/saveaction and Ed.gov/SAVE for updates. 


If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX., Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX., Thursday and Friday XXXX XXXX XXXX XXXX XXXX XXXX 
Thank you, MOHELA '' On XX/XX/XXXX I was still not in the forbearance and I sent the following message : " Hello, it is saying my account is past due but I was told by someone on the phone that I would be placed in forbearance while my IDR application is being processed. How do I apply for forbearance if this is not the case? I am pursuing PSLF and only payments made under IDR plans count so I do not want to pay on the standard plan. '' Mohela 's response : " Thank you for contacting MOHELA, To apply for a forbearance option there is a pre-qualification process to determine if you are eligible. We want to make sure we place you on the best option as it relates to your current situation. Please call toll free at XXXX. 

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX, Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX, Thursday and Friday XXXX XXXX XXXX XXXX XXXX XXXX 
Thank you, MOHELA '' On XX/XX/XXXX I attempted to call Mohela again because I have still not been placed into the before mentioned forbearance and was very confused as to why they were telling me I had to apply for forbearance when all previous communication had stated that I would be placed into the forbearance for a minimum of 60 days or until XX/XX/XXXX since litigation is still on going about IDR plans. I was on hold for over 5 hours before their business hours ended and no one ever answered my phone call. 

As of today, XX/XX/XXXX, I am still not in forbearance and I am still showing late payments on my account that I should not have to be making. I am pursuing Public Servant Loan Forgiveness and, any payment I make under the standard plan will not count towards this. I am trying to pay back my student loans and Mohela is making it impossible and my credit will soon be affected because of their obscenely slow processing times. I sent the following message today : " I received this message from you all " If you applied for IDR on or after XX/XX/XXXX, your loan [ s ] will be placed on a 60-day Processing Forbearance. During the 60-day Processing Forbearance, interest will accrue, and the periods spent in this forbearance will be eligible for Public Service Loan Forgiveness ( PSLF ) and IDR forgiveness credit. '' But I am getting notices that my payments are late. I applied for an IDR plan on XX/XX/XXXX so I should be in forbearance. Please rectify this so that my account is correct. Thank you! '' But I have little hope that it will do anything to resolve this issue. Each time I try to call, I am quoted a minimum of a 3 hour hold time on the phone. All of my applications are still pending, including that of my loan consolidation that was submitted in XXXX of XXXX. When my loans were being processed through Aidvantage I never waited more than 15 minutes. I feel as though Mohela is intentionally making this process difficult rather than trying to help me pay back my loans. I should not be punished because of the litigation that is ongoing when I submitted all paperwork required over two months before litigation blocking IDR took place. Had Mohela had reasonable processing times I would be on an IDR plan and actively paying my loans back rather than getting my credit ruined.

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