Consumer complaint received 2025-08-08 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: MO

Complaint narrative:
In XX/XX/XXXX, I applied for a new repayment plan. My intention was to exit forbearance because I had previously been enrolled in the XXXX plan, which had been put on hold due to litigation. I have been in forbearance on my loan against my will since XX/XX/XXXX due to XXXX XXXX  platform update and the XXXX plan litigation. 

On XX/XX/XXXX, I received a " Notice of Repayment Schedule Change '' from MOHELA informing me that my repayment schedule had changed, that I was enrolled in XXXX, and that payments of {$480.00} would start on XXXX XXXX, XXXX. ( Additionally, the letter states there would be XXXX payments in that amount, followed by XXXX payments of {$2600.00} beginning XXXX XXXX, XXXX. ) On XX/XX/XXXX, I received another " Notice of Repayment Schedule Change '' from MOHELA once again informing me that my repayment schedule had changed, that I was enrolled in XXXX, and that payments of {$480.00} would start on XXXX XXXX, XXXX. Additionally, this letter contained a slightly different amount for the next round of payments beginning XXXX XXXX, XXXX : {$2600.00}, as well as a slightly different number of payments ( XXXX ). I assumed this slight difference in the amount and number of those payments was the reason for this second correspondence. 

I was all set to restart payments on XXXX XXXX, XXXX. I made sure my direct draw information was up to date, and I was eager to restart payments that would count toward my Public Service Loan Forgiveness, as I am XXXX payments away from the required XXXX payments. 

However, in a letter from MOHELA dated XXXX XXXX, XXXX, and titled " Your Student Loans Are in a Forbearance, '' I was informed that I had been put into forbearance. I was shocked. I called MOHELA customer service on XXXX XXXX to understand the issue twice. Both times, after much back and forth, they informed me that I should submit a new repayment application. When I asked why I received XXXX notices informing me payments would restart on XXXX XXXX, they could not provide a clear answer. They informed me that I had submitted my most recent repayment application prior to some particular date in XXXX and that these applications are essentially on hold. I demanded to be referred to a supervisor and was sent to a pre-recorded line for a supervisor in the XXXX Department. I was not allowed to speak to anyone immediately but rather had to press a button to affirm that I would be called back. 

On XXXX XXXX, XXXX, I was called back and spoke to MOHELA XXXX Department supervisor XXXX XXXX. She informed me that the XXXX letters I received indicating payments would restart in XXXX XXXX were a " mishap '' on XXXX XXXX part. I expressed my frustration and asked for a timeline for a new application. She said it would be processed " pretty quick. '' When pressed on a timeline, XXXX XXXX acknowledged that it would likely take " months '' to process my application. I asked XXXX XXXX if MOHELA had any process for expediting applications, a fair request given that my current forbearance was entirely a result of my reliance upon XXXX XXXX false communications. She said they do not. I asked if I could file a complaint. She directed me that complaints could be filed through studentaid.gov but did not provide a direct link or any specific information on filing. 

Additionally, in XX/XX/XXXX, I made a request through studentaid.gov for a " reconsideration '' ( a.k.a. " buy-back '' ) of the months needed to obtain XXXX XXXXeligible payments XXXX I have more than enough months in forbearance to make me eligible for a buyback. Buyback processing is required under 34 C.F.R. 685.219 ( g ) ( XXXX ). 

On XXXX XXXX, XXXX, I filed a complaint with the XXXX Ombudsman. I have not yet received a response to that complaint.

Company response to consumer: Untimely response