Consumer complaint received 2025-07-29 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: NY

Complaint narrative:
I am submitting a Consumer Financial Protection Bureau ( CFPB ) complaint against my current loan servicer, Mohela. Since XXXX, my federal student loans have been exclusively on the PAYE repayment plan. My account has always been in good standing, without exception. Since XXXX, numerous errors have been made, to my detriment, by XXXX XXXX XXXX ( XXXX  ), XXXX, XXXX, and Mohela. Today, there are two main issues that I must escalate against Mohela : ( 1 ) My PAYE recertification was mishandled in XXXX XXXX, leading to a monthly loan payment increase from {$380.00} to {$1100.00} per month. At this time, my monthly payment should still be {$380.00}. Until my account was placed into forbearance in XX/XX/XXXX against my will ( again due to errors by Mohela ), I have overpaid in the amount of {$1100.00} nine times. I was essentially forced to make these overpayments since I am participating in the PSLF program, and if I do not pay my exact-due monthly payment as stated on my Mohela account, my payment for that month will not be counted towards PSLF. 

To be specific, I overpaid in the amount of {$1100.00} for the months of XXXX, XXXX and XX/XX/XXXX. No payment was due on my account in XX/XX/XXXX since Mohela was transitioning online platforms, however, XX/XX/XXXX should still count for PSLF. As payments on the Mohela platform were resuming, I continued to pay the exact amounts due on my account each month : {$34.00} for XX/XX/XXXX and {$1000.00} for XX/XX/XXXX, which together add up to one additional overpayment of {$1100.00}. Again, both XXXX and XX/XX/XXXX should still count for PSLF, as these payment anomalies over XXXX XXXX were due to the Mohela platform changes, and not any failure to pay on my part. I then continued to overpay in the amount of {$1100.00} for XXXX, XXXX and XX/XX/XXXX, as well as XXXX and XX/XX/XXXX. Again, I have overpaid in the amount of {$1100.00} nine times. Each payment has exceeded my correct monthly payment by {$720.00}. When multiplied by nine, you can see that I have thus far overpaid {$6400.00} to Mohela. I need Mohela to restore my monthly payment amount to {$380.00} as soon as possible. I also need them to refund my overpayments, which at the time of this complaint total {$6400.00}.

( 2 ) My PAYE recertification was again mishandled by Mohela in XXXX XXXX. I was told two conflicting pieces of information by Mohela agents during this time. First, I was told that ALL IDR repayment plans ( including PAYE ) would have recertification dates extended until XXXX. Therefore, I should not recertify my plan at this time. However, I was then told by a different Mohela agent that I did need to recertify my plan at this time, because my recertification probably would not be extended. And if I didnt recertify asap, I would risk being kicked off of PAYE. So, out of fear, I did submit a recertification application for PAYE for XXXX. However, after submitting this, I called again to check with Mohela. During a XX/XX/XXXX phone call, I was told by Mohela that my recertification would actually not be processed for XXXX because there was now a pause in action placed on all IBR plans. They couldnt tell me at this time what would happen to my account, whether it would be recertified soon, extended until XXXX, or something else. Either way, to prevent me from losing my enrollment in PAYE, they advised that I be placed into administrative forbearance immediately, which was done on XX/XX/XXXX during that phone call. Since my monthly payment due date has always been the XXXX of the month, I have now been unable to make monthly payments on my account since XX/XX/XXXX. I also have a forbearance status on my account for the upcoming month of XXXX. At the time of this complaint, this will now be at least SIX months having my account in a forced forbearance by Mohela, and thereby rendering me unable to make qualifying monthly payments towards PSLF. I have now since had confirmation from multiple Mohela agents that my recertification will indeed be extended until XXXX, however the recertification date has still not been changed.

I have been on the phone with Mohela multiple times during this month alone, and they continue to advise me against ending forbearance status on my account because of these above two unresolved issues, ( 1 ) and ( 2 ). Ending forbearance at this time would essentially make these two problems worse. I urgently need your help to hold Mohela accountable for ( 1 ) lowering my monthly payments so that I can stop being overcharged, receive a refund of my overpayments, and re-enter payment status, thereby resuming monthly payments towards PSLF. I also need you to hold them accountable for ( 2 ) extending my recertification date to XXXX so that I can resume making payments towards PSLF. 

I desperately need to resume making payments. I am currently working for a PSLF-qualified employer, in a position which I do not want to work. However, I will not have fulfilled PSLF until I make 120 qualifying payments. I have already had 6 months lost during XXXX XXXX due to errors by Mohela, and it is unclear whether I will be able to get some or all of these months back. I have also noticed that I was not granted PSLF-qualifying-payment status during the Mohela website platform transfer, as I should have been, as noted above. Im sure that once these above issues are fixed, the process of retroactively reclaiming payments will be another long and painful one, due to the malignant, dysfunctional nature of Mohela. Can you please, please help me out at least with these above matters ( 1 ) and ( 2 ).

I have already done so much to try to resolve these problems. I have contacted Mohela by phone ( a long, painful process in itself ) regarding the overpayment issue on : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX to no avail. I called again on XX/XX/XXXX and was told to circle back in 60 days for my issue to be resolved. 

I started stretching my finances to meet the elevated monthly payment amount. I submitted a CFPB complaint regarding this matter on XX/XX/XXXX ( XXXX ). The outcome was not helpful. 

I called Mohela again on XX/XX/XXXX. I was told my elevated payment amount would be resolved in 5-10 business days. It was not fixed. 

I called Mohela again on XX/XX/XXXX. I was told to circle back late XXXX week of XXXX due to Mohela platform changes and them being unable to do anything at this time. 

I called Mohela again on XX/XX/XXXX ( unable to get through ). I called again on XX/XX/XXXX. I was told that nothing regarding my PAYE plan would be able to be changed until after XX/XX/XXXX, and to not bother calling back before then. 

I submitted a second CFPB complaint regarding the elevated payment amount on XX/XX/XXXX ( XXXX ). The outcome again was not helpful. The outcome letter also included a phone number for a XXXX XXXX XXXX which did not work at all. The number provided literally did not work. 

I called Mohela again on XX/XX/XXXX. After 2 hours of looking into my case, I was transferred to a supervisor who told me that no changes could be processed for IDR plans at this time anyways, therefore they were unable to help me. They did not have any estimate of when things could be processed again. 

I called Mohela the first week of XX/XX/XXXX from a landline phone. I had to hang up after 1 hour and 20 minutes on hold. I called Mohela again on XX/XX/XXXX, but after 1 hour and 35 minutes on hold, I again had to hang up. 

I called Mohela again XX/XX/XXXX regarding ( a ) the persistently elevated monthly payments. They confirmed that they had all the information they needed to lower the payment back down to {$380.00}, which they would do asap as an escalation. I also asked about ( b ) potential PAYE recertification for XXXX. The agent confirmed that the recertification for my PAYE plan would be extended until XXXX. 

I called Mohela again on XX/XX/XXXX. They confirmed that they were still in the process of lowering my monthly payment back to {$380.00}. They said that they would put an additional escalation on it. They also said that my plan was in the process of receiving a recertification extension, and to ignore letters I had received instructing me to recertify now. Due to lack of resolution from XXXX recertification issues, and concern that Mohela would again make errors regarding recertification, I submitted an XXXX  feedback case against Mohela on XX/XX/XXXX ( XXXX ). The outcome was not helpful. 

I called Mohela again on XX/XX/XXXX. They said that the escalation to lower my monthly payments was still in progress. They also gave conflicting information regarding whether my PAYE recertification would be extended, and for how long. Taking their incorrect advice, I did submit a recertification form in XX/XX/XXXX, in a panic, since they stated I could otherwise be kicked off of PAYE if I didnt recertify now. I sent the recertification forms by paper mail since the recertification link had been taken down on the Mohela website during this time. I subsequently uploaded the application to my Mohela account electronically. 

I called Mohela again XX/XX/XXXX, as noted above. This was the day that my plan was placed into forbearance, undesired by me, due to the inability of Mohela to manage anything regarding recertification at this time. They were unsure whether my recertification would be extended or when. The agent also gave new information regarding my elevated monthly payments, which were still not fixed : The escalation regarding this issue, from XX/XX/XXXX, could take up to 90 business days to be resolved ( ie. Up to XX/XX/XXXX ). 

I called Mohela twice on XX/XX/XXXX. XXXX agent told me that my PAYE recertification would be extended until XXXX. Another agent told me that my recertification would actually be processed in XXXX. They could not explain their conflicting advice. They did advise me to call back in early XXXX, just before my plan would come out of the 2 month forbearance, so they could make sure everything was correct before resuming monthly payments on XX/XX/XXXX. 

I called Mohela back on XX/XX/XXXX. They stated that my undesired forbearance would have to be extended further. My account now showed next-due payment on XX/XX/XXXX. I was transferred to a supervisor to discuss further, however there was only an option to receive a callback from a supervisor, no possibility to speak directly. I submitted my request for a callback but never received one. 

I submitted another XXXX feedback case against Mohela on XX/XX/XXXX ( XXXX ) regarding both the elevated monthly payment amount ( resulting from Mohela mishandling my XXXX recertification ) as well as the current mishandling of plan recertification leading to an undesired forbearance. 

I called Mohela again XX/XX/XXXX. I asked about my extended forbearance as well as ongoing correction of my monthly payment amount ( since it had now been 90 business days ). I was again transferred to speak to a supervisor. I was only offered the callback option, and again never received one.

For the next month, I heard horror stories from multiple friends regarding failed attempts to get in contact with Mohela, so I did not call during this time. I continued to await the outcome of my second XXXX  feedback case ( XXXX ). 

I heard that friends were able to make contact with Mohela again in XXXX, so I called Mohela XX/XX/XXXX, submitted a request for supervisor call back, and did receive one this time. The supervisor stated that they would bump up both of my requests regarding ( a ) incorrectly elevated payments, as well as ( b ) current mishandling of PAYE recertification leading to undesired forbearance. They gave an expected turn around of 3-5 business days. The Mohela supervisor also stated THEMSELVES : If I called back and there was no movement on correctly lowering my monthly payments, I should submit another CFPB complaint, since the problem had been ongoing for more than 1 year. The Mohela supervisor literally advised me to manage my problems with Mohela by submitting a CFPB complaint. 

I called Mohela again on XX/XX/XXXX, submitted a request for supervisor callback, and did not receive a callback same-day. 

I did, however, receive an email reply from my XXXX  feedback case ( XXXX ) on XX/XX/XXXX stating that : ( a ) A review of the account reflects that your recertification date should have been extended, and ( b ) A request has been submitted to reinstate the prior monthly payment of {$380.00} to your account. Unfortunately, we are not able to provide an estimated timeframe that it will take to have the request processed. Once processed, you will receive notification. 

Mohela did not call me back until Monday XX/XX/XXXX at XXXX ( from my XX/XX/XXXX call ). I was in the middle of work. They refused to wait for me to wrap things up and said they would instead put me back in line for another callback. I never received one. 

I called Mohela again on XX/XX/XXXX. I submitted a request for supervisor callback, and did not receive a callback same-day. A Mohela supervisor did call me back on Saturday XX/XX/XXXX at XXXX, and I cancelled the remainder of my afternoon plans in order to speak with her. The supervisor stated that she saw the active escalation on my account to address both issues : ( a ) ongoing need for monthly payment correction and ( b ) current need to extend my PAYE recertification until XXXX. She stated that, while shes not able to submit another escalation while an escalation regarding these matters is currently active, she did send an email to upper management while we were on the call, requesting them to implement these changes as soon as possible on my account. I also uploaded the XX/XX/XXXX email reply from my XXXX feedback case ( XXXX ) onto my Mohela account, and the Mohela supervisor reviewed it with me during this call. She agreed with XXXX  findings, but stated that it was strange that Mohela never received these exact instructions from XXXX directly. She stated that these changes would still be implemented by Mohela, but that Mohela had not received any instruction from XXXX in response to my feedback case. 

Thus, I called XXXX on XX/XX/XXXX to address ( a ) correctly lowering my monthly payment back to {$380.00} and ( b ) extending my PAYE recertification until XXXX. The XXXX agent confirmed that both of these items should happen, as confirmed in their email response on XX/XX/XXXX. However, the agent also stated that this feedback case ( XXXX ) is closed on their end. These items are now in Mohelas queue for them to implement. She stated that there is nothing more that XXXX can do at this time, and that XXXX does not follow up with Mohela to ensure accountability for these actions. She advised me to continue following up with Mohela directly. She stated that otherwise I could submit another XXXX  feedback case if I would like. 

Clearly, I just submitted an XXXX  feedback case. I was also advised by a Mohela supervisor themselves on XX/XX/XXXX to submit another CFPB complaint, as noted above. So here I am. I am requesting you to please, please hold my loan servicer, Mohela, accountable. I need the following two items to happen as soon as possible so that I do not continue to lose more money and more time : ( 1 ) Correctly lower my monthly loan payment amount to {$380.00} per month. I understand, from speaking to numerous Mohela reps, that I will need to separately submit a request for reimbursement, only after the correction has first been done. Please just help me make this correction. It has been more than 1 year.

( 2 ) Correctly extend my PAYE payment plan recertification to XXXX. 

Thank you for your help with these matters. I greatly appreciate it.

Company response to consumer: Closed with explanation