Consumer complaint received 2025-01-03 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: MN

Complaint narrative:
I have direct consolidated loans with Mohela. I am working towards the PSLF program. I have been paying on my account as instructed since the loans went into repayment in XXXX with the exception of the COVID forbearance period. When the loans were scheduled to restart after the covid forbearance ended I had switched my repayment plan to PSLF. After this switch Mohela sent multiple emails about timing of recertification which had two separate dates that didn't match the dates that were listed for recertification on the studentaid.gov. The communication from Mohela about recertification included language that interest would capitalize if recertifications were submitted on time. Fearful of having my interest capitalize I following the instructions from Mohela. I sent in my recertification as instructed to accomadate the early recertification date that Mohela has instructed which was earlier than the date on studentaid.gov website. This recertification was submitted 2 days prior to the Biden-Harris administration announcing that the recertification dates were being pushed back and that if we had submitted our recertifications early that our payments would not increase. My payment did indeed increase from {$660.00} to {$1100.00}. The announcement form the department of ed said that if our early recertification resulted in an increase in payment that our account would revert back to the former payment. Mohela did not follow this department of Ed directive. I called multiple times to Mohela to get my account fixed. I was advised to place my account in a processing forbearance in XXXX XXXX and take my account off autopay to avoid paying this higher amount while they took up to 60 days to fix my account. My account then proceeded to show a past due of {$1100.00} after I followed their lead. My IBR recertification submitted at that time has also requested to be changed from PAYE to SAVE. Mohela cancelled my IBR request for unclear reasons which should have kept me in the PAYE program. Instead they independently switched me into SAVE despite canceling my IBR request which should not have happened. I called multiple times in the spring and summer of XXXX requesting my account revert back to PAYE at my lower amount as directed by the department of Ed directive in the setting of them cancelling my IBR request. I was told that this would happen. I had to continue to call and ask to be placed in a processing forbearance as the 60 day deadline would pass and my account did not revert back. After the SAVE program was challenged and everyone in the SAVE repayment plan was placed in an administrative forbearance I was also placed in an administrative forbearance rather than a processing forbearance. When my account was inappropriately placed into an administrative forbearance my interest on my loan capitalized. This capitalized interest was in the amount of {$20000.00}. This was an inapprorpiate capitalization of my loan interest. I have called and requested them to revert the interest capitalization which I was told was appropriate and they would do. This still has not occurred. I have requested Mohela to revert my account back to my repayment plan of PAYE at XXXX XXXX and reverse my interest capitalization. Mohela representative can not give me a clear answer on what is happening with my account. I have been unable to reach a representative in a timely fashion, often having to wait 2+ hours on hold. When I do finally reach a representative I have been told my account will revert back to PAYE at the lower amount and my interest capitalization will be reversed by some and I have been told by others that it won't happen. I have no access to documentation that has occured between me and mohela agents because it doesn't show on my account. I have requested a timeline of events and dates of communication which had not been sent. I believe that I was inappropriately transitioned to the SAVE payment plan despite Mohela cancelling my IBR request. Mohela fails to send accurate information or correspondence, their statements are incorrect. They do not honor their processing deadlines to make changes to the consumers account and their representative are ill informed and lack training to adequately and timely address the concerns submitted. I am not caught up in the SAVE forbearance inappropriately and can not make qualifying payments towards PSLF. I am requesting assistance to revert my account back to PAYE at the previously states payment and have my interest capitalization reverted.

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