Consumer complaint received 2024-01-20 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: WA

Complaint narrative:
On XX/XX/XXXX I submitted my IDR application to Mohela because of the XX/XX/XXXX restarting of student loan payments. 

On XX/XX/XXXX I was notified that my account would be be put in administrative forbearance from XX/XX/XXXX to XX/XX/XXXX to process my IDR application ( email attached ). I had not requested administrative forbearance and was eager to start my loan payment in XX/XX/XXXX since I am working towards PSLF. 

On XX/XX/XXXX I was notified that there had been a change to my account and that I had a scheduled monthly payment for XX/XX/XXXX in the amount of {$42.00} ( email attached ). 

In late XX/XX/XXXX I called Mohela and asked why I had a payment due of {$42.00} if my account was in administrative forbearance. Upon digging, I found that loan 1 of my 10 loans was not in administrative forbearance. I was told by the Mohela representative that this was clearly an error that one of the loans was not in administrative forbearance. At that point my IDR application has been approved in early XXXX and I asked if I could make a payment on all of my loans for XX/XX/XXXX since I am working towards PSLF. I was told that would not be possible since 9 out of 10 of my loans were in administrative forbearance that I had not requested and Mohela would not be able to change my account forbearance for the month of XX/XX/XXXX. I was told that the payment of {$42.00} would be processed and then I could call to get it refunded since this was an error as all of my other loans were in administrative forbearance. 

Mohela refunded the amount of {$42.00} on XX/XX/XXXX. On XX/XX/XXXX I received a " friendly reminder '' that XXXX due date has been missed. Since then I have received reminders from Mohela and XXXX Department of Education that I have missed payments. I have called Mohela XXXX times about this issue and each time I'm told that this is an error and to ignore the late payment reminders. On XX/XX/XXXX I received a response from Mohela regarding another issue I had about PSLF qualifying payment counts with a response that my account is currently 20 days delinquent with a past due amount of {$260.00} ( email attached ). On XX/XX/XXXX I called Mohela and spent over XXXX hours on the phone just to be told to ignore the email sent on XX/XX/XXXX about the past due amount of {$260.00} and that it was a mistake. The representative said they could see a late amount of {$42.00}. When I explained everything above, the issue was escalated to a specialist who did nothing in the two hours and I was ultimately told to ignore all late notifications NOT to pay the {$42.00} and that the issue would be corrected in 45 business days. I then confirmed that my account would still show delinquent and that I would continue to receive emails that I am delinquent on my Federal student loans. I was told this would be the case until the issue is resolved by Mohela. 

I am a XXXX employee who is working towards PSLF and who has never paid a bill late. This is ridiculous that I have been subjected to the stress and time I have had to spend on trying to make my student loan payments on time and ultimately work towards PSLF. Back in XX/XX/XXXX when I was put in administrative forbearance without my approval I was told I could not pay my full amount for the month of XX/XX/XXXX even though my IDR application had been approved by that point. Mohela told me that they could not process the change in my account in time. Now I am being punished with a false delinquent account for an error from Mohela.

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