Consumer complaint received 2024-08-26 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: OH

Complaint narrative:
I am writing to express my concerns and seek your assistance regarding a significant issue with my federal student loans, which are currently being serviced by Mohela. I am now facing a significant financial challenge caused directly by the ineptitude of the loan servicer. 

I currently owe {$71000.00} in federal student loans. Since the repayment of my loans was required, I have been enrolled in an income-based repayment plan, which required monthly payments of {$660.00}. However, following the transition of my online loan servicing platform from Mohela.com to Mohela.StudentAid.gov, my repayment plan was unexpectedly changed to the standard plan with a monthly payment amount of {$810.00}. This change was made with

out my consent or any explanation beforehand. I have contacted Mohela and Student Aid multipl
e times to resolve this issue and have requested to be placed back into my original income-based repayment plan. Unfortunately, the representatives and their supervisors have been unable to assist me and state they do not understand why my repayment plan changed. They have informed me that they can not revert the changes to my original payment amount and suggested that I re-apply for an income-based repayment plan. 

The problem with this suggestion is that plan processing is currently halted due to ongoing legal issues with certain income-based repayment plans. As a result, I was left with no immediate recourse and I was responsible for paying the higher monthly amount of {$810.00}, which would have put a significant financial strain on my family. Because of the inability to pay this higher amount, I had no choice but to ask Mohela to place me on forbearance until the new payment plan gets processed ( which is currently halted ). Due to forbearance, interest continues to accrue on my account. As it stands, because of the failure and inaction of Mohela to appropriately perform their duty as my loan servicer, I am being financially exploited. Over the last several months, I have attempted to resolve this issue by contacting different resources and my efforts have been futile : Mohela : Called XX/XX/year> and XX/XX/year>. Have sent emails via their online account portal on XX/XX/year>, XX/XX/year>, XX/XX/year>, and XX/XX/year> Federal Student Aid : Submitted a complaint via their online portal XX/XX/year> Congressional representative office : Submitted congressional inquiry request XX/XX/year> Given these circumstances, I am urgently seeking your assistance to help address this issue. Specifically, I would appreciate any support you can provide in facilitating the reinstatement of my previous income-based repayment plan so I can continue with my payments and avoid the undue financial burden of the higher standard plan payment amounts and the unnecessary accumulation of interest caused by the forbearance. 

Thank you very much for your attention to this matter. I look forward to your prompt response and any assistance you can offer.

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