Consumer complaint received 2025-08-02 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: FL

Complaint narrative:
Background : - I am currently enrolled in XXXX with XXXX qualifying monthly payments already verified. I am employed full-time by a qualifying 501 ( c ) ( 3 ) nonprofit hospital. 
- My federal direct loans ( Loan Type : XXXXXXXX XXXX Consolidated Unsubsidized ) totaling {$360000.00} were previously serviced by Federal Student Loan Servicing and automatically transferred to MOHELA. 
- Until XX/XX/year>, I was on the SAVE repayment plan. 
- Upon notification that the SAVE plan was ending and my loans were being placed into forbearance, I promptly submitted an Income-Driven Repayment ( IDR ) application via StudentAid.gov on XX/XX/year>. 
- On XX/XX/year>, I received confirmation that my application had been received and reviewed by MOHELA. 
- On XX/XX/year>, I was sent a formal letter by MOHELA confirming my repayment plan was now XXXX, with payments scheduled to resume on XX/XX/year>. The letter stated that no further action was needed in the meantime. 
- On XX/XX/year>, I received a XXXX Update notice detailing unpaid accrued interest. On XX/XX/year>, I paid the full accrued interest of {$3800.00}. 
- On XX/XX/year>, MOHELA issued a letter stating my loans were now in repayment and that automatic payments would begin XX/XX/year>. 
- The very next day, on XX/XX/year>, I received a contradictory letter from MOHELA stating that I was placed into forbearance under the XXXX plan with 0 % interest. However, this same letter confirmed that while in forbearance, I would not receive XXXX credit. 
This directly contradicts all previous documentation and communications I received from MOHELA, including the official repayment schedule. 

Attempt to Resolve : - On XX/XX/year>, after extensive time on hold, I reached a member of MOHELAs advanced team who acknowledged there was a system error, confirmed I should never have been placed into forbearance, and assured me that my account would be restored to the correct IDR status. 
- Despite this assurance, my online MOHELA account showed no updates. I followed up again and was eventually contacted by a MOHELA supervisor, XXXX XXXX, who informed me that due to an alleged " pause '' in XXXX application processing, my XX/XX/year> application had been discarded. 
- I was never notified of this pause, nor was I instructed to reapply after it ended. On the contrary, I was explicitly told that my application had been processed and that payments would resume. 
- I have now been forced to submit a second IDR application, and have been informed there is no way to expedite the processing. In the meantime, I remain in forbearance through no fault of my own. 
- As of XX/XX/year>, my interest will no longer be 0 % and will begin to accrue interest again without any further information of what the % this will be. I have been told that none of the months I have been in improper forbearance will count toward PSLF. 

I have documentation for all the above and uploaded XXXX of the Mohela documents to support my claims. I have additional documentation if requested.

Company response to consumer: Untimely response