Consumer complaint received 2025-02-25 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: MOHELA
State: FL

Complaint narrative:
I had a Federal Family Education Loan ( FFEL ), previously managed by XXXX, which has tripled in value with no relief in sight. This is a $ XXXX loan from XXXX that now has become over $ XXXX. I started paying this loan in XXXX with some gaps in between payments due to personal financial constraints. By now, I am sure I have paid the original principal amount and the rest is for the government to make money. As I approach retirement, I sought more manageable options that I could afford. I visited the Department of Educations website, and based on the available options, I decided to request a consolidation loan in order to qualify for lower payment plans. I submitted my consolidation application and received a processing confirmation on XX/XX/XXXX. 
At the same time, I applied for the SAVE/IDR plan, which, based on my personal information, indicated that I would qualify for a lower monthly payment of approximately {$150.00} for 20 years, with the remaining balance to be forgiven after the 20-year term. 
Since then, the entire process has been a nightmare. I have struggled to understand what is happening with my application and the plan I requested. No one at MOHELA seems to know anything. Every representative Ive spoken to has been uninformed and could only tell me that the process was still ongoing. They recommended that I not make monthly payments, place my loans in forbearance, and call back the following month. 
I keep receiving different information every time I call. Ive been sent notices stating that my payment is past due, that my payment has changed, that my loan is in forbearance and then past due again and repeats over and over. I received notification that my plan was under the standard repayment plan, which I never requested with an amount higher than what I was paying XXXXcertainly not what I requested and certainly an amount that I can not afford. I am a single parent with a mortgage, three cars to pay and maintain, two daughters in college, thousands in credit card balances and the continuing high cost of living with insurances and groceries. It is extremely infuriating and frustrating talking to anyone anymore about this insane student loan. During my last call in XX/XX/XXXX, I was told that my SAVE plan was no longer open, but that they were processing another IDR application I submitted in XXXX. My online account still shows over {$1000.00} past due, yet they claim the loan is in forbearance. This situation is truly a nightmare that only continues to add to my loan balance. This is not acceptable. 
When I verify my information on the Department of Education website, it shows that my SAVE plan application was closed with an estimated payment of {$180.00}. I dont understand why these governmental entities are so disconnected with information and why there is such a lack of proper training for representatives who are supposed to make financial decisions on your behalf. 
I am not asking for an easy way out, but I deserve a plan that is fair. XXXX never worked on behalf of the customer, always recommending forbearances without explaining the consequences and how significantly they increase your loan amount. They also misguided me with suggestions that did not reduce or help in satisfying this debt. Now, MOHELA is doing the same. When Mohela took over my student loan the balance was {$49000.00} and 6 months later, the loan increased to {$51000.00}. 
I demand an immediate resolution to this matter, which must meet the original terms of my SAVE application. Specifically, I want the plan I applied for, expect a monthly payment of approximately $ XXXX XXXX XXXX monthly payment for 20 years, with the remaining balance forgiven at the end of that period. I also request that any past-due balances and unnecessary charges be corrected immediately. The current standard repayment option is not acceptable to me, showing that I will end up paying {$100000.00} of student debt!!!!. An original {$13000.00} debt to pay $ XXXX is simply racketeering Thank you in advance for reviewing my case and looking into an acceptable resolution.

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