Consumer complaint received 2025-06-18 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: MA

Complaint narrative:
Communication with MOHELA has been very difficult. I do not have time to sit on the phone for hours waiting for customer service and I want a written record of things to do with my loans. MOHELA has sent me several messages " by mistake '' and have no corrected any of them. My concern is that their incompetence will affect my loans and will cause myself and my family financial harm.

I have received communication that my I have had the following communication with MOHELA starting in XXXX of XXXX. 
MY MESSAGE : Original message : Good afternoon, I received a message from MOHELA today telling me that I have accrued interest while in forbearance. I also have a message from MOHELA in XXXX, stating I would not be accruing interest. I am enrolled in the XXXX plan and PSLF and I am not making payments on my loans. I'm confused by the mixed messaging and I can not wait on the phone for 51 minutes in order to speak to someone. Can someone please help me understand why I am accruing interest while I am placed in forebearance because of legal action that has nothing to do with me. 

Thank you, XXXX -- -RESPONSE -- XX/XX/XXXX : Message from MOHELA Subject : Deferment and Forbearance Received Date : XX/XX/XXXX Thank you for contacting MOHELA, Thank you for contacting MOHELA, Regarding your secured message. MOHELA has placed borrowers who were already enrolled in the Saving on a Valuable Education ( SAVE ) plan into a forbearance because the court order prevents us from billing you at the SAVE plans monthly payment amounts.

MOHELA is in the process of updating borrowers ' accounts to ensure they accurately reflect the 0 % interest while borrowers are in this forbearance.

The time in this forbearance will not count toward Public Service Loan Forgiveness ( PSLF ) or Income-Driven Repayment ( IDR ) forgiveness.

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 CT. 

Thank you, MOHELA Phone XXXX Fax XXXX TDD Dial XXXX XXXX M, XXXX T-W, and XXXX TR-F. CT. XXXX XXXX XXXX, XXXX, MO XXXX. 

This message, from a debt collector, is an attempt to collect a debt and any information obtained will be used for that purpose. 

MASSACHUSETTS RESIDENTS : If you are struggling with your student loans, please fill out the form located at : XXXX XXXX XXXXsubmit-a-student-loan-help-request to get help from the Ombudsman 's Student Loan Assistance XXXX XXXX 

California residents : The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before XXXX XXXX or after XXXX XXXX They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at XXXX or www.ftc.gov. 

If you do not want to receive future information of this nature, please unsubscribe or contact customer service _____________________________________________________________________ RECEIVED A LETTER THAT MY PAYMENTS WOULD BE STARTING ON XX/XX/XXXX and other communication that stated other dates. 
_____________ Message from me Original message:XXXX XXXX, I received several messages from MOHELA on XX/XX/XXXX stating that my payments would start up again. Each document listed different start dates and I was hoping for clarity. The dates that I have seen are XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Which of these dates are correct, if they are correct? 
Thank you, at XXXX. 
_____________________________________________________________________ Subject : Message from MOHELA -- -- -- -- -NOT SPECIFYING OR ACKNOWLEDGING THAT THEY ARE SENDING OFFICIAL COMMUNICATION BY MISTAKE Payments or Bills Received Date : XX/XX/XXXX 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 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 are enrolled in the SAVE plan you are in a General Forbearance, unless you obtained a different status ( for example, deferment ), because your loan servicer is not currently able to bill you at an amount required by the court injunction. You will be in this forbearance until servicers are able to accurately calculate monthly payments, which ED expects servicers to be able to do no earlier than XX/XX/XXXX. This timeline will give borrowers the opportunity to make another choice for repayment, based on which of the updated options is best for them. Borrowers will be informed of any further change to this litigation-related forbearance. 

Under this General Forbearance : - you do not have to make your monthly payments on your student loans, - interest is not accruing, and - time spent does NOT provide credit toward Public Service Loan Forgiveness ( PSLF ) or IDR forgiveness.

Because SAVE Plan borrowers will be in a General Forbearance until the fall of XXXX, ED is directing loan servicers to change IDR plan anniversary recertification deadlines. The first recertification deadline for SAVE borrowers will be no earlier than XX/XX/XXXX. Recertification deadlines will occur on a rolling basis. Borrowers will receive information from their servicers on their specific recertification timeline. We encourage you to visit XXXX and provide consent for auto recertification of your IDR plan if you are eligible. By doing so, we'll automatically recertify your IDR plan by its recertification deadline. This will ensure you remain enrolled in SAVE.

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 through Friday XXXX XXXX XXXX XXXX XXXX., and Saturday XXXX XXXX XXXX XXXX XXXX XXXX Thank you, MOHELA Phone : Phone XXXX ( Toll Free ) or XXXX ( International ) TDD Dial XXXX Fax : XXXX Hours of Operation Monday : XXXX XXXX XXXX XXXX XXXX  Eastern Time ( ET ) Tuesday through Friday : XXXX XXXX XXXX XXXX XXXX XXXX Saturday : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, MO, XXXX Payments Department of Education MOHELA, P.O. Box XXXX, XXXX XXXX, MO, XXXX This message, from a debt collector, is an attempt to collect a debt and any information obtained will be used for that purpose. 


MASSACHUSETTS RESIDENTS : If you are struggling with your student loans, please fill out the form located at : XXXX XXXX XXXX to get help from the Ombudsman 's Student Loan Assistance Unit . 


California residents : The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before XXXX XXXX XXXX XXXX XXXX XXXX. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 877.FTC.HELP or www.ftc.gov. 
_____________________________________________________________________ XX/XX/XXXX, XXXX Letter from MOHELA accruing Interest _____________________________________________________________________ Original message : XX/XX/XXXX Message from Me Good Morning, I received communication this morning informing me that my loans are accruing interest. I am confused because I received earlier communication from MOHELA stating that I was placed in administrative forbearance, during which interest would not be accrued. As far as my knowledge there is are still court cases that have been been resolved and therefore, I am still in administrative forbearance. 

Please advise and provide clear communication about what is going on with my loans. 
_____________________________________________________________________________ Subject : Message from MOHELA Deferment and Forbearance Received Date : XX/XX/XXXX Thank you for contacting MOHELA, MOHELA has placed borrowers who were already enrolled in the Saving on a Valuable Education ( SAVE ) plan into a forbearance because the court order prevents us from billing you at the SAVE plans monthly payment amounts.

MOHELA is in the process of updating borrowers ' accounts to ensure they accurately reflect the 0 % interest while borrowers are in this forbearance.

The time in this forbearance will not count toward Public Service Loan Forgiveness ( PSLF ) or Income-Driven Repayment ( IDR ) forgiveness.

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX, Tuesday through Friday XXXX XXXX XXXX XXXX XXXX, and Saturday XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXhank you, MOHELA Phone : Phone XXXX ( Toll Free ) or XXXX ( International ) TDD Dial XXXX Fax : XXXX Hours of Operation Monday : XXXX XXXX XXXX XXXX XXXX  Eastern Time ( ET ) Tuesday through Friday : XXXX XXXX XXXX XXXX XXXX  XXXX Saturday : XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX, XXXX, MO, XXXX Payments Department of Education MOHELA, P.O. Box XXXX, XXXX XXXX, MO, XXXX This message, from a debt collector, is an attempt to collect a debt and any information obtained will be used for that purpose. 
___________________________________________________________________________________ Message From Me Customer Service Received Date : XX/XX/XXXX Original message : Hello, I received an email on XX/XX/XXXX from MOHELA stating that my loans are accruing interest. I am happy to share a copy of the email and information if needed for your reference. 


I reached out to MOHELA on XX/XX/XXXX and received the following message : Regarding your secured message. MOHELA has placed borrowers who were already enrolled in the Saving on a Valuable Education ( SAVE ) plan into a forbearance because the court order prevents us from billing you at the SAVE plans monthly payment amounts.

MOHELA is in the process of updating borrowers ' accounts to ensure they accurately reflect the 0 % interest while borrowers are in this forbearance. 
The time in this forbearance will not count toward Public Service Loan Forgiveness ( PSLF ) or Income-Driven Repayment ( IDR ) forgiven -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - This appears to be an automated message and it is still not clear to me if I am accruing interest or not. I am requesting a detailed email/letter explicitly explaining that I am not accruing interest at this time and that the message from XX/XX/XXXX about me accruing interest was a mistake. If it is not a mistake, I need clear communication stating that I am accruing interest and the reasoning behind this change. 


I have not appreciated the customer service and support MOHELA has provided over the years and need the communication to be much more clear or I will file a complaint with the Consumer Financial Protection Bureau. 
___________________________________________________________________________________ XX/XX/XXXX Communication : Message from me Original message : I sent a message on XX/XX/XXXX requesting a message informing me that the letter I received that stated I was accruing interest and had accrued {$82.00} of interest was sent in error. 
Additionally, the communication needs to state that the {$82.00} that has been accrued will be fixed ( removed from my account ) before my payments resume after the SAVE plan legal proceedings have concluded.

Again, I will file a complaint against MOHELA if I do not receive this communication for my records. MOHELA has made several mistakes or has been impossible to work with over the years since my loans have been transferred here and it is unacceptable. 
______________________________________________________________________________ XXXX Message from me Original message : This is my last attempt to get a written response from MOHELA before I move forward with a formal complaint. On XX/XX/XXXX I received communication that my account is accruing interest during my forbearance due to the SAVE program being in the courts. I inquired about whether it was a mistake or not. I received an automated message that stated I was not accruing interest but did not mention that the original communication on XX/XX/XXXX was sent by mistake. On XX/XX/XXXX I sent a message that says the following : I sent a message on XX/XX/XXXX requesting a message informing me that the letter I received that stated I was accruing interest and had accrued {$82.00} of interest was sent in error. Additionally, the communication needs to state that the {$82.00} that has been accrued will be fixed ( removed from my account ) before my payments resume after the SAVE plan legal proceedings have concluded. Again, I will file a complaint against MOHELA if I do not receive this communication for my records. MOHELA has made several mistakes or has been impossible to work with over the years since my loans have been transferred here and it is unacceptable.

_____________________________________________________ As I mentioned this is my final attempt before filing a formal complaint. I would like the answer to these questions in writing due to the horrible customer service from MOHELA, the amount of time I have spent waiting to speak to someone, and to ensure clarity for my records.

Thank you, ________________________________________________________________________________ XXXXResponse from MOHELA 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 through Friday XXXX XXXX XXXX XXXX XXXX and Saturday XXXX XXXX XXXX XXXX XXXX XXXX  Thank you, MOHELA _____________________________________________________ XX/XX/XXXX : Response from me I have received no communication from customer service or MOHELA. I refuse to speak on the phone with MOHELA because the wait is too long and I want written confirmation that I am being charged interest that I should not be. At this point I am filing a formal complaint. MOHELA is a nightmare to work with.

Company response to consumer: Closed with explanation