Consumer complaint received 2025-02-10 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: FL

Complaint narrative:
I graduated medical school in XXXX of XXXX with {$150000.00} of federal student loans through MOHELA. Proactively, before I graduated, I attempted to enroll in the SAVE plan XX/XX/XXXX so that I could waive my 6 month grace period and start counting payments towards the XXXX which would qualify me for PSLF loan forgiveness. This application was not processed for unclear reasons and I even attempted to resubmit an IDR plan request XX/XX/XXXX. This was also not processed because allegedly I had to consolidate my loans to " waive '' my new graduate grace period. Nonetheless, as such, I went ahead and consolidated my loans and timely applied for SAVE. This application has not been processed since early XX/XX/XXXX and I have accrued more than {$1900.00} in interest while working for a recognized underserved area in Florida as a resident physician. According to https : //www.ed.gov/higher-education/manage-your-loans/save-plan, " If servicers need time to process a borrowers IDR application, servicers will move the borrower into a processing forbearance for up to 60 days. Interest accrues during this short-term processing forbearance, and time in the processing forbearance is eligible for PSLF and IDR forgiveness. If the borrowers application is not processed by their servicer within 60 days, the borrower will be moved into a general forbearance that does not count toward PSLF or IDR until their application is processed. Interest will not accrue in this general forbearance. '' My loans have not been processed for XXXX months and have been actively accruing interest. I expressed this to my mohela representative XX/XX/XXXX while experiencing stress about my incoming loan payment of {$950.00} due on XX/XX/XXXX, and she had no idea about this forbearance policy that I quoted directly from ed.gov. Myself and several thousand other new physicians will not be able to pay close to 1,000 or so dollars per month on our resident physician salaries of ~ $ XXXX. In addition, this same representative stated that she could only place my account under administrative forbearance 3 times ( each 60 day periods ) within a 18 month window. I have already exhausted XXXX of my 60 day administrative forbearances. If this is the case, and the injunction and legal proceedings take XXXX months ( which is expected ), I will be ruined financially while working to serve the underserved in XXXX of the counties in XXXX  that have the greatest need for physicians. This would be disastrous for myself and every other resident physician that has graduated with student loans. As such, I would like to file a formal complaint so that myself and thousands of other new physicians can be protected from MOHELA 's negligence and active mishandling/misinformation regarding our student loans. Please help. This subset of XXXX graduates who have not been able to enroll in IBR plans due to mohela 's negligence is experiencing unjust circumstances that need to be investigated. 

This CFPB complaint regarding the above was closed with no tangible impact or help whatsoever. My balance is now {$150000.00} as of XX/XX/XXXX with a staggering {$960.00} due amount for XX/XX/XXXX showing that mohela is negligently charging and accruing interest on accounts that are in the midst of processing for the SAVE plan. Mohela has been unable to process this since early XX/XX/XXXX and thus after the XXXX  days of admin processing, I should no longer be accruing interest. My plan is still processing at this time and there should be no reason for a {$960.00} due balance as I should be in a general forbearance per " If the borrowers application is not processed by their servicer within 60 days, the borrower will be moved into a general forbearance that does not count toward PSLF or IDR until their application is processed. Interest will not accrue in the SAVE forbearance. '' found on XXXX XXXX XXXX

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