Consumer complaint received 2025-09-09 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: MA

Complaint narrative:
I applied for an income-driven repayment plan in XXXX of XXXX through my loan servicer, MOHELA. I applied the day before the XXXX injunction was enacted. My understanding of what should have happened is that I should have been placed on a single XXXX processing forbearance, then after those XXXX days I should have been placed on an indefinite, interest free administrative forbearance. What happened instead was every XXXX  days I have called and the representative has told me they can re-apply the processing forbearance. This means my loans have erroneously been accruing interest for over a year. 

I called MOHELA on XX/XX/XXXX and it was confirmed to me that yes, I was incorrectly placed on multiple processing forbearances, administrative forbearance was pending, my case had been escalated, and once it was successfully applied to my account in up to XXXX business days, the interest accrued would be corrected. However, I was not placed on a processing forbearance and the administrative forbearance, which I was told was pending, did not get applied before my payment was due and I therefore missed a payment. I called again on XX/XX/XXXX and was told then that administrative forbearance could take up to XXXX business days to be applied ( significantly more than the XXXX business days I was initially told ). During this XXXX day waiting time, I could be placed on yet another XXXX processing forbearance. This was applied for and approved on XX/XX/XXXX. 

However, I received notification the week of XX/XX/XXXX that my loans had entered repayment. This is, of course, less than XXXX  days after XX/XX/XXXX. I tried calling to figure out what had happened. The first MOHELA agent escalated my case to an advanced agent ; the advanced agent then escalated my case to a second advanced agent. I waited an hour and was only told that a XXXX processing forbearance could be re-applied. This is frankly ridiculous. 

Since this happened, I have sent MOHELA at least XXXX different messages through their secure messaging system, asking XXXX very specific questions. To each XXXX, they have either said that their records indicate I have already spoken to a representative on this matter ( which is untrue ), or when I submitted a formal complaint to MOHELA on XX/XX/XXXX, stating I wanted my questions answered in writing, they failed to respond at all. 

I called again XXXX, XX/XX/XXXX. An agent escalated my case ( again ), and I was assured that this escalation would finally solve my problem in up to XXXX business days. Those XXXX business days passed without resolution, so I called again yesterday, XXXX. This time, I was told I could be transferred to the XXXX Department. This is the first time I had even been told that a XXXX Department existed. When I was transferred to them, I was told by an auto-operator that their call volume was too high and I would need to schedule a call back. They called me back this morning ( XXXX ). I was told that they could see my open XXXX  application, my open application to adjust the interest on my account, the open escalation ( XXXX ), the open complaint I had filed, and yet, they could not tell me when any of this would be addressed. They tried to tell me all of this was because the government paused XXXX. I told them that the issue was my account erroneously accruing interest, which is 100 % within MOHELA 's purview. They had no response and could provide no further assistance. 

Meanwhile, I have also contacted my state Attorney General 's office. I sent them all necessary information on XXXX, XX/XX/XXXX. I was told yesterday by the XXXX 's office that they have reached out to MOHELA and haven't received a response. 

Also, meanwhile, on XX/XX/XXXX I filed a formal complaint with the Department of Education 's XXXX XXXX. I was told upon submission that I would hear back within XXXX  days. I have not heard at all, back despite following up on XX/XX/XXXX and XX/XX/XXXX. 

This is a incredibly negligent and irresponsible inaction both from MOHELA and XXXX XXXX XXXX. The amount of time and effort I have sunk into attempting to correct this issue without any actionable progress ( or in many cases, without a response ), is actually absurd. I just want my account to reflect that it should not have been accruing interest for a year.

Company response to consumer: Untimely response